pc
nid 93641
Jul 01, 2026
pthandapani@vixio.com
India
Reserve Bank of India
financial services
84% of draft length
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2053 charsIndia's Reserve Bank Amends Foreign Exchange Management Deposit Regulations for International Financial Services Centre Accounts
On June 18, 2026, the Reserve Bank of India (RBI) published the Foreign Exchange Management (Deposit) (Sixth Amendment) Regulations, 2026, amending the principal Foreign Exchange Management (Deposit) Regulations, 2016. The amendment introduces regulatory changes governing Special Non-Resident Rupee Accounts (SNRR accounts) and expands their availability to International Financial Services Centres (IFSC) in India.
The key amendments broaden the scope of SNRR accounts by permitting non-residents to open, hold, and maintain these accounts not only with authorised dealers in India or their branches outside India, but also within an IFSC in India. The regulations clarify that IFSC has the same meaning as defined in the International Financial Services Centres Authority Act, 2019. The amendment modifies the permitted transactions for SNRR accounts, allowing transfers from Non-Resident Ordinary (NRO) accounts within specified limits under the Foreign Exchange Management (Remittance of Assets) Regulations, 2016, and transfers to Non-Resident External (NRE) or SNRR accounts under the same limits. The regulations streamline Schedule 4 by deleting several existing paragraphs and substituting others to clarify that SNRR accounts may be used for permissible current and capital account transactions with persons resident in India, as well as bona fide transactions with persons resident outside India. Additionally, the amendment introduces provisions for transactions between non-residents involving SNRR accounts, allowing authorised dealer banks to effect transfers based on account holder instructions indicating the underlying transaction purpose.
The regulations come into force upon publication in the Official Gazette of the Government of India. These amendments align with India's efforts to enhance the regulatory framework governing foreign exchange management and facilitate international financial services operations within designated centres.
REFERENCE:
Reserve Bank of India Notification No. FEMA 5(R)(6)/2026-RB, June 18, 2026
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1732 charsReserve Bank India Amends Foreign Exchange Management Deposit Regulations for International Financial Services Centre Accounts
The Reserve Bank of India (RBI) has issued the Foreign Exchange Management (Deposit) (Sixth Amendment) Regulations, 2026.
The amended regulations contain:
New definitions prescribing the meaning of 'International Financial Services Centre' or 'IFSC', assigning it the exact meaning as defined in clause (g) of section 3 of the International Financial Services Centres Authority Act, 2019.
Regulations prescribing the operational scope of Special Non-Resident Rupee (SNRR) accounts, explicitly allowing a person resident outside India to open, hold, and maintain an SNRR account with an authorized dealer in India or its branch outside India, including within an IFSC.
Specific rules mandating that SNRR accounts can be utilized for putting through permissible current and capital account transactions with a person resident in India, as well as for any bona fide transaction with a person resident outside India.
Provisions outlining expanded transfer capabilities, permitting fund transfers from Non-Resident (Ordinary) (NRO) accounts to Non-Resident (External) (NRE) or SNRR accounts, provided they remain within the limits specified in Regulation 4 of the Foreign Exchange Management (Remittance of Assets) Regulations, 2016.
Administrative measures detailing that transactions between persons resident outside India involving SNRR accounts, which may not be subject to compliance under the Act, must be effected by the authorized dealer (AD) bank based on instructions or a mandate from the account holder indicating the underlying purpose of the transfer.
Directives streamlining Schedule 4 of the principal regulations by officially deleting existing paragraphs 2, 5, 6, 7, and 8.
The amendments take immediate effect.