The Reserve Bank of India (RBI) on January 16, 2025, updated the Master Direction - Deposits and Accounts.
The following changes have been stated:
• Para 4.10 has been amended as follows:
4.10 A person resident in India, being an exporter, may open, hold and maintain a Foreign Currency Account with a bank outside India, for realisation of full export value and advance remittance received by the exporter towards export of goods or services. Funds in this account may be utilised by the exporter for paying for its imports into India or repatriated into India within a period not exceeding the end of the next month from the date of receipt of the funds after adjusting for forward commitments, provided that the realisation and repatriation requirements as specified in Regulation 9 of Foreign Exchange Management (Export of Goods and Services) Regulations, 2015 are also met.
• Para 7.1 has been amended as follows:
7.1 A person resident outside India, having a business interest in India, may open a Special Non-Resident Rupee Account (SNRR account) with an authorised dealer in India or its branch outside India for the purpose of putting through permissible current and capital account transactions with a person resident in India in accordance with the Act, rules and regulations framed under the Act, and for putting through any transaction with a person resident outside India.,
Explanation: A unit in an International Financial Services Centre (IFSC) under section 18 of the Special Economic Zones Act, 2005 may open an SNRR account with an authorised dealer in India (outside IFSC) for its business related transactions outside IFSC.
• Para 14 has been amended as follows:
14. Transfer of funds between repatriable accounts
Transfer of funds, for all bona fide transactions, between repatriable Rupee accounts maintained in accordance with Foreign Exchange Management (Deposit) Regulations, 2016 is permitted.
Since this Master Direction has been significantly amended, it has been replaced rather than showing the changes in track mode for reader convenience. In any case, the changes are listed at the end of Master Direction.
Kindly find the Updated Master direction attached to the document below.
[Notification No. RBI/FED/2015-16/9 FED Master Direction No. 14/2015-16]
