RBI Permits PROIs with Business Interests in India to Open SNRR Accounts Through an Authorized Dealer Branch Abroad

Notification No. FEMA 5(R)(5)/2025-RB; Dated: 14.01.2025

The Reserve Bank of India has notified the FEM (Deposit) (Fifth Amendment) Regulations, 2025. A new regulation 9 has been added. Regulation 9 permits the transfer of funds between repatriable rupee accounts. However, the transfer must be done for bonafide transactions.

Further, the newly notified norms allow a person resident outside India, having business interest in India, to open a Special Non-Resident Rupee Account (SNRR account), with an authorised dealer in India or its branch outside India for the purpose of putting through permissible current and capital account transactions with a person resident in India and for putting through any transaction with a person resident outside India.

Further, a unit in an International Financial Services Centre (IFSC) under section 18 of the Special Economic Zone Act, 2005, may open an SNRR account with an authorised dealer in India (outside IFSC) for its business-related transactions outside IFSC. Earlier, only the opening in India was allowed.

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