The International Financial Services Centres Authority (IFSCA) on February 18, 2025, issued the Amendment to the Circular regarding the “Permissible transactions through the Special Non-Resident Rupee (SNRR) accounts of IFSC units – Amendment”
The following has been stated namely: -
• Clause 2 of the Circular shall be substituted by the following, namely: -
“The erstwhile directions under the Foreign Exchange Management (Deposit) Regulations, 2016 (“the regulations”) permitted the abovementioned SNRR account to be used for business related transactions like administrative expenses in INR outside IFSC, INR amount from sale of scrap, government incentives in INR, etc.”
• Clause 3 of the Circular shall be substituted by the following, namely: -
“All Financial Institutions may note that an amendment to the regulations, notified on January 14, 20251, now permits a unit in an IFSC under section 18 of the Special Economic Zones Act, 2005 to open an SNRR account with an authorised dealer in India (outside IFSC) for its business related transactions outside IFSC. In this regard, it is clarified that all units in an IFSC shall ensure transacting or receiving the monetary consideration relating to delivery of a financial service (i.e. funds/fees/amount) only through an account maintained with a Banking Unit in IFSC”
[Notification No. IFSCA - FMPP0BR/4/2024-Banking /1]
