The Reserve Bank of India has amended the SNRR account rules under the Foreign Exchange Management (Deposit) Regulations, 2016. The sixth amendment, notified on June 18, 2026, introduces several important changes for non-resident individuals and businesses. These updates take effect from the date of publication in the Official Gazette.
Key Changes to SNRR Account Rules
The RBI has formally defined the term ‘International Financial Services Centre’ (IFSC) within the deposit regulations. As a result, non-residents can now open and maintain a Special Non-Resident Rupee (SNRR) account with an authorised dealer in India or its branch — including branches located inside an IFSC. This marks a significant expansion in where these accounts can be held.
Additionally, the RBI has simplified Schedule 4, which governs SNRR accounts. It deleted paragraphs 2, 5, 6, 7, and 8, streamlining the regulatory framework considerably. The revised paragraph 1 now clearly states that SNRR accounts support both current and capital account transactions with Indian residents, as well as bona fide transactions with other non-residents.
Furthermore, a new paragraph 16 has been inserted into Schedule 4. This clause addresses transactions between two non-resident parties involving SNRR accounts. Under this provision, the authorised dealer bank will process such transfers based on the account holder’s instructions, which must clearly state the underlying purpose of the transfer.
What This Means for NRI and IFSC Account Holders
The amendment also updates the rules around NRO account transfers. Non-residents can now transfer funds from their NRO account to an NRE or SNRR account, subject to limits under the Foreign Exchange Management (Remittance of Assets) Regulations, 2016. Meanwhile, transfers from NRO accounts into NRE accounts have been similarly clarified under Schedule 1.
These changes, therefore, bring greater clarity for non-resident individuals managing multiple foreign currency and rupee accounts in India. The inclusion of IFSC branches is especially significant, as it aligns the SNRR account framework with India’s growing international financial hub ambitions. For example, businesses operating through GIFT City can now directly use SNRR accounts for eligible transactions.
However, account holders should consult their authorised dealer banks to understand how these updated rules apply to their specific accounts. The RBI’s move reflects its ongoing effort to simplify and modernise India’s foreign exchange management framework.
Source: RBI Notifications
