Ease of doing business for IFSC units; NRIs can open special rupee accounts

IFSCA on January 29, 2025 has clarified that a unit in an International Financial Services Centre (IFSC) notified under section 18 of the Special Economic Zones Act, 2005, may open an Special Non-Resident Rupee account with an authorised dealer in India (outside IFSC).

The extant 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.

All Financial Institutions may note that an amendment to the regulations, notified on January 14, 20251, now permits the said SNRR account to be used for all business related transactions of the IFSC unit.

IBUs are therefore directed to take up the matter of providing internet banking services to SNRR accounts of IFSC units with the appropriate department of their bank for an early rollout of such services. IBUs shall submit a status report to the Authority on this matter every quarter starting with the quarter ended March 31, 2025 (to be submitted within 15 days from the end of every quarter) until such facility is opertaionalised.