The Reserve Bank of India has issued The Foreign Exchange Management (Deposit) (Third Amendment) Regulations, 2019 vide Notification dated 13 November 2019. The RBI has relaxed the procedural constraints for operating an Special Non Resident Rupee Account(SNRR Account).
The following are major amendments made to the Schedule 4 that deals with SNRR account:
- The business interest, apart from generic business interest, shall include the Investments made in India in accordance with Foreign Exchange Management (Non-debt Instruments) Rules,and Foreign Exchange Management (Debt Instruments) Regulations, Import of goods and services in accordance with Section 5 of the Foreign Exchange Management Act , Export of goods and services in accordance with Section 7 of the Foreign Exchange Management Act, Trade credit transactions and lending under External Commercial Borrowings (ECB) and Business related transactions outside International Financial Service Centre (IFSC) by IFSC.
- The tenure of an SNRR account shall continue to be 7 years, but the account opened for business interests as stated above shall be exempt from this restriction.
- The amount payable to non-resident nominee from the account of a deceased account holder can now be remitted through normal banking channels.
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