RBI Permits SNRR Accounts with ADs in IFSCs

Notification no. F. No. FEMA 5(R)(6)/2026-RB; Dated: 18.06.2026

The Reserve Bank of India (RBI) has notified the Foreign Exchange Management (Deposit) (Sixth Amendment) Regulations, 2026, introducing changes to the framework governing Special Non-Resident Rupee (SNRR) Accounts.

The amendment expands the avenues available to persons resident outside India for opening and maintaining SNRR Accounts by permitting such accounts to be opened with Authorised Dealers operating in International Financial Services Centres (IFSCs).

1. Expansion of SNRR Account Framework

The amendment broadens the eligibility framework relating to the opening, holding and maintenance of Special Non-Resident Rupee (SNRR) Accounts in India.

Under the revised framework, eligible persons resident outside India may now maintain SNRR Accounts in IFSCs through authorised banking channels.

2. SNRR Accounts Permitted with ADs in IFSCs

A key change introduced by the amendment is the permission to open and maintain SNRR Accounts with:

• Authorised Dealers (ADs) operating in IFSCs.

This expands the existing banking infrastructure through which SNRR Accounts can be maintained and facilitates greater integration of IFSCs with cross-border financial transactions.

3. Existing Position Prior to Amendment

Prior to the amendment, persons resident outside India having a business interest in India were permitted to:

• Open;
• Hold; and
• Maintain

an SNRR Account with:

• An Authorised Dealer in India; or
• A branch of an Authorised Dealer located outside India.

The amended Regulations now extend this facility to Authorised Dealers operating in IFSCs as well.

4. Objective of the Amendment

The amendment seeks to:

• Enhance the attractiveness of IFSCs as international financial centres;
• Facilitate cross-border business transactions;
• Expand banking options available to non-residents;
• Promote ease of doing business; and
• Strengthen the IFSC ecosystem.

5. Impact on Non-Resident Persons and Businesses

The revised framework provides greater flexibility to persons resident outside India who have business interests involving India by enabling them to maintain SNRR Accounts through banking units operating in IFSCs.

The measure is expected to support international business transactions and improve operational convenience for non-resident entities.

6. Key Takeaway

RBI has notified the FEMA (Deposit) (Sixth Amendment) Regulations, 2026, permitting persons resident outside India to open, hold and maintain Special Non-Resident Rupee (SNRR) Accounts with Authorised Dealers in IFSCs. The amendment expands the existing framework and is expected to facilitate cross-border business transactions while strengthening the role of IFSCs in India’s financial ecosystem.

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