2026-06-18
Added · Updated
The Reserve Bank of India amends the Foreign Exchange Management (Deposit) Regulations, 2016, to insert a definition for 'International Financial Services Centre' and authorize persons resident outside India to open, hold, and maintain Special Non-Resident Rupee (SNRR) accounts with authorized dealers in India, including branches in an IFSC. The amendment updates Schedule 4 to define permissible current and capital account transactions for SNRR accounts, deletes existing paragraphs 2, 5, 6, 7, and 8, and substitutes paragraphs 1 and 10 to govern transfers from NRO accounts. It further inserts a new paragraph 16 allowing transactions between persons resident outside India involving SNRR accounts based on instructions indicating the underlying purpose. These regulations come into force from the date of their publication in the Official Gazette.
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( 147 kb ) Foreign Exchange Management (Deposit) (Sixth Amendment) Regulations, 2026
RESERVE BANK OF INDIA FOREIGN EXCHANGE DEPARTMENT CENTRAL OFFICE Mumbai 400 001
Notification No. FEMA 5(R)(6)/2026-RB
June 18, 2026
Foreign Exchange Management (Deposit) (Sixth Amendment) Regulations, 2026
In exercise of the powers conferred by sub-section (2) of section 6 and sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India makes the following amendment in the Foreign Exchange Management (Deposit) Regulations, 2016 ( Notification No. FEMA 5 (R)/2016-RB dated April 01, 2016 ) (hereinafter referred to as 'the principal regulations'), namely:-
(i)These regulations may be called the Foreign Exchange Management (Deposit) (Sixth Amendment) Regulations, 2026.
(ii)They shall come into force from the date of their publication in the Official Gazette .
“(v-a) ‘International Financial Services Centre’ or ‘IFSC’ shall have the same meaning as assigned to it in clause (g) of section 3 of the International Financial Services Centres Authority Act, 2019 (50 of 2019).”
“Any person resident outside India may open, hold and maintain with an authorised dealer in India or its branch outside India (including in an IFSC in India), a Special Non-Resident Rupee Account (SNRR account), specified in Schedule 4.”
“(k) Transfer from NRO account within the limit specified in Regulation 4 of Foreign Exchange Management (Remittance of Assets) Regulations, 2016.”
“(v) Transfer to NRE or SNRR account within the limit specified in Regulation 4 of Foreign Exchange Management (Remittance of Assets) Regulations, 2016.”
A person resident outside India may open a Special Non-Resident Rupee Account (SNRR account), with an authorised dealer in India or its branch outside India (including in an IFSC in India), for the purpose of putting through permissible current and capital account transactions with a person resident in India in accordance with the rules and regulations framed under the Act, and for putting through any bona fide transaction with a person resident outside India.
In the principal regulations, in Schedule 4, the existing paragraphs 2,5,6,7,8 shall be deleted.
In the principal regulations, in Schedule 4, the existing paragraph 10 shall be substituted by the following namely:-
“Transfer from NRO account to SNRR account shall be in accordance with the Schedule 3 of these regulations.”
“16. Transactions between persons resident outside India involving the SNRR accounts, which may not be subject to compliance under the Act, or the Rules and Regulations framed thereunder, are to be effected by the AD bank based on instructions/mandate from the account holder that shall indicate the underlying purpose of the transfer.”
(N Senthil Kumar) Chief General Manager
The Principal Regulations were published in the Official Gazette of Government of India – Extraordinary – Part-II, Section 3, Sub-Section (i) dated G.S.R. No. 389(E) dated April 1, 2016 and subsequently amended vide the following, namely,-
G.S.R. No. 1093(E) dated 09.11.2018
G.S.R. No. 498(E) dated 16.07.2019
Notification No. FEMA 5(R)/(3)/2019-RB dated November 13, 2019
Notification No. FEMA 5(R)/(4)/2024-RB dated May 06, 2024
Notification No. FEMA 5(R) (5)/2025-RB dated January 14, 2025
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