The Reserve Bank of India has, on November 13, 2019, issued a
notification bearing number FEMA 5(R)/(3)/2019-RB notifying the
Notification of Foreign Exchange Management (Deposit) (Third
Amendment) Regulations, 2019.
The amendment has been brought into force to enhance the scope
of non-interest bearing Special Non-resident Rupee Account
("SNRR Account") by permitting persons
resident outside India to open such accounts to facilitate rupee
denominated ECB, trade credit and trade invoicing.
Pursuant to the said amendment, the SNRR Account can be opened
and operated for business interest in India including the following
INR transactions:
(i) Investments made in India in accordance with Foreign
Exchange Management (Non-debt Instruments) Rules, 2019 dated
October 17, 2019 and Foreign Exchange Management (Debt Instruments)
Regulations, 2019 notified vide notification no. FEMA 396/2019-RB
dated October 17, 2019, as applicable, as amended from time to
time
