The Reserve bank of India in its notification dated 22nd November 2019 has enhanced the scope of special Non-resident rupee (SNRR account) by allowing persons residing outside India to open such account for purpose like external commercial borrowing and trade credit in INR.
Key highlights of the Policy Review:
- Any person resident outside India, having a business interest in India, may open a SNRR account with an authorised dealer for the purpose of putting through bona fide transactions in rupees.
- SNRR Account can be opened for:
- External Commercial Borrowings in INR;
- Trade Credits in INR;
- Trade (Export/ Import) Invoicing in INR; and
- Business related transactions outside International Financial Service Centre (IFSC) by IFSC units at GIFT city like administrative expenses in INR outside IFSC, INR amount from sale of scrap, government incentives in INR, etc. The account will be maintained with bank in India (outside IFSC).
3. Further, certain other provisions for operation of the SNRR Account have been rationalized like:
i) Restriction on the tenure of the SNRR account for the purposes given above, has been removed.
ii) Apart from Non-Resident Ordinary (NRO) Account, credit of amount due/ payable to non-resident nominee from account of a deceased account holder to Non-Resident External (NRE) Account or direct remittance outside India through normal banking channels, has been permitted.
Click here to read the Notification
