Karnataka HC: Caste Slurs at Factory Dispatch Area Accessible to Workers Amount to Public View  ||  Delhi HC: Lawyer’s Inability to Understand Lower Court Order Cannot Justify Delay in Filing Appeal  ||  Delhi HC: POCSO Charges Stay Even If Minors Remain Unidentified In Child Sexual Exploitation Cases  ||  J&K&L HC: Mere Abuse or Mentioning Caste Name Does Not Constitute an Offence under SC/ST Act  ||  Tripura HC: Divorced Daughter Cannot Claim Family Pension if Divorce Happens After Parent’s Death  ||  SC: Candidate Missing Physical Test Gets No Second Chance; Compassion Has No Place in Public Jobs  ||  SC Grants Bail to Doctors as Were Not Provided in Writing, Citing 'Mihir Shah' Verdict  ||  Supreme Court: Dowry Harassment and Domestic Abuse Persist, Showing Patriarchy Still Prevails  ||  Supreme Court: Dowry Harassment and Domestic Abuse Persist, Showing Patriarchy Still Prevails  ||  Supreme Court: Pay Commission Benefits Cannot Be Denied By Imposing Extra Conditions    

RBI expands scope of non-resident Rupee Accounts - (22 Nov 2019)

Banking

Reserve Bank of India in consultation with Government of India widens scope of Special Non-Resident Rupee accounts (SNRR) aiming to promote the usage of INR products by persons residing outside India. Now, person resident outside India are allowed to open \account for External Commercial Borrowings in INR, Trade Credits in INR, Trade (Export/ Import) Invoicing in INR. Further, Business related transactions outside International Financial Service Centre (IFSC) by IFSC units at GIFT city like administrative expenses in INR, INR amount from sale of scrap, government incentives in INR, etc. are also included. The account will be maintained with bank in India (outside IFSC). Further, restriction on the tenure of SNRR account, which is currently 7 years, is also proposed to be removed.

Any person resident outside India, having a business interest in India, can open a Special Non-Resident Rupee Account (SNRR account) with an authorised dealer for the purpose of putting through bona fide transactions in rupees which are in conformity with the provisions of the Act, rules and regulations made thereunder. The SNRR account carries the nomenclature of the specific business for which it is opened. The debits/ credits and the balances in the account should be incidental and commensurate with the business operations of the account holder. For smooth operation of the SNRR Account, certain other provisions are to be rationalised. Apart from Non-Resident Ordinary (NRO) Account, credit of amount due/ payable to non-resident nominee permitted from account of a deceased account holder to Non-Resident External (NRE) Account or direct remittance outside India through normal banking channels.

The directions have been issued under Sections 10(4) and 11(2) of the Foreign Exchange Management Act, 1999. The Reserve Bank has been taking steps for popularising the cross-border transactions in Indian rupee (INR), especially in respect of external commercial borrowing (ECB), trade credit and exports and imports, in order to reduce the exchange risk for persons resident in India.

Tags : SNRR   SCOPE   EXPANSION  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved