International Financial Services Centres Authority (IFSCA), vide Circular No. IFSCA-FMPP0BR/4/2024-Banking/1[1] dated January 29, 2025, issued the permissible transactions through the Special Non-Resident Rupee Accounts (“SNRR Accounts”) of IFSC units.
In accordance with the recent amendments to the Foreign Exchange Management (Deposit) Regulations, 2016, notified on January 14, 2025 (“Amended Regulations”), the scope of transactions permissible through SNRR Accounts held by units in International Financial Services Centres (“IFSC”) has been expanded.
Whereas, the extant Foreign Exchange Management (Deposit) Regulations, 2016 permitted the SNRR account to only be used for certain business-related transactions, including administrative expenses and government incentives in Indian Rupees outside the IFSC. The Amended Regulations, now permit the SNRR account to be used for all business-related transactions of the IFSC unit.
[1]https://ifsca.gov.in/Viewer?Path=Document%2FLegal%2Fsnrr-account-all-res_revised29012025063052.pdf&Title=Permissible%20transactions%20through%20the%20Special%20Non-Resident%20Rupee%20%28SNRR%29%20accounts%20of%20IFSC%20units%20-%20Amendment&Date=29%2F01%2F2025