Expansion of Scope of Special Non-Resident Rupee Account

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Dec 30, 2019

Expansion of Scope of Special Non-Resident Rupee Account

In terms of the Master Circular on Deposits and Accounts dated January 1, 2016 (as amended), any person resident outside India having business interests in India is permitted to open a Special Non-Resident Rupee Account (‘SNRR Account’) with an authorized dealer for the purpose of effecting bona fide transactions in Rupees. The Reserve Bank of India (‘RBI’) on November 22, 2019 has expanded the scope of SNRR Account by inter-alia permitting persons resident outside India to open such accounts for: (i) external commercial borrowings in Rupees; (ii) trade credits in Rupees; (iii) trade (export/ import) invoicing in Rupees; and (iv) business related transactions outside International Financial Service Centre (‘IFSC’) by IFSC units at the Gujarat International Finance Tec-City (GIFT-City), such as administrative expenses, sale of scrap, government incentives, etc.

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