The Reserve Bank of India (RBI), vide the Foreign Exchange Management (Deposit) (Sixth Amendment) Regulations, 2026<\/strong> dated 18 June 2026<\/strong>, has significantly liberalised the regulatory framework governing Special Non-Resident Rupee (SNRR) Accounts<\/strong>. The amendments aim to simplify access to SNRR accounts, facilitate cross-border Rupee transactions, and support the broader objective of internationalisation of the Indian Rupee.<\/p>\n The most significant change is the removal of the requirement that a non-resident must have a business interest in India<\/strong> to open an SNRR account. Under the revised regulations, any person resident outside India<\/strong> may now open and maintain an SNRR account with:<\/p>\n The amended regulations broaden the operational flexibility of SNRR accounts by permitting a wider range of transactions in accordance with FEMA and RBI directions. The framework has also been simplified by removing several restrictive provisions that previously limited the usage of these accounts.<\/p>\n The regulations now expressly permit transfers from Non-Resident Ordinary (NRO) Accounts<\/strong> to SNRR accounts, providing greater flexibility in fund management for eligible non-residents and facilitating smoother movement of funds within the FEMA framework.<\/p>\n The liberalised framework is expected to benefit foreign investors, multinational corporations, overseas financial institutions, and other non-residents undertaking Rupee-denominated transactions with India. Key benefits include:<\/p>\n The Reserve Bank of India (RBI), vide Notification No. FEMA 23(R)\/(8)\/2026-RB dated 5 June 2026<\/strong>, has amended the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015<\/strong>, restoring the prescribed period for realisation and repatriation of export proceeds from 15 months to 9 months<\/strong>. The amendment comes into effect from 05th<\/sup> June 2026.<\/p>\n The restoration of the nine-month timeline requires exporters to revisit their credit terms, collection mechanisms and internal compliance processes. Businesses with extended customer payment cycles should closely monitor outstanding export receivables and engage with their Authorised Dealer (AD) Banks wherever delays in realisation are anticipated.<\/p>\n Exporters should also ensure timely reconciliation of shipping bills and inward remittances through the Export Data Processing and Monitoring System (EDPMS) to avoid compliance issues under FEMA.<\/p>\n 3) RBI Liberalises Foreign Portfolio Investment Framework under Schedule III<\/strong><\/p>\n The Reserve Bank of India (RBI), vide A.P. (DIR Series) Circular No. 14 (RBI\/2026-27\/114) dated 15 June 2026<\/strong>, has operationalised the recent amendments to Schedule III of the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019<\/strong>, significantly expanding the scope of Foreign Portfolio Investment (FPI) in listed Indian companies.<\/p>\n The circular implements the Government’s liberalised investment framework by allowing all persons resident outside India<\/strong> to invest in the equity instruments of listed Indian companies through recognised stock exchanges in India, subject to the applicable provisions of FEMA and SEBI regulations.<\/p>\n Earlier, investment under Schedule III through recognised stock exchanges was largely restricted to Non-Resident Indians (NRIs)<\/strong> and Overseas Citizens of India (OCIs)<\/strong>. Under the revised framework, all individual persons resident outside India<\/strong> are now permitted to invest in equity instruments of listed Indian companies through recognised stock exchanges in India, thereby broadening access to India’s capital markets.<\/p>\n To facilitate these investments, Authorised Dealer (AD) Category-I Banks<\/strong> have been permitted to open repatriable Indian Rupee (INR) accounts<\/strong> for eligible investors. These accounts will enable seamless investment, receipt of sale proceeds, and repatriation of funds in accordance with FEMA regulations.<\/p>\n The RBI has clarified that transaction reporting, monitoring of investment limits, and operational procedures for these investors will continue to follow the existing framework currently applicable to NRIs and OCIs. This ensures continuity in regulatory oversight while extending the investment facility to a wider class of foreign investors.<\/p>\n The circular also provides that any reclassification of investments from Foreign Portfolio Investment (FPI) to Foreign Direct Investment (FDI)<\/strong> shall be undertaken strictly in accordance with the framework prescribed by the RBI and the applicable FEMA provisions.<\/p>\n AD Category-I Banks have been advised to establish appropriate internal systems and procedures to ensure compliance with FEMA, RBI directions and applicable SEBI regulations while facilitating investments under the revised framework.<\/p>\n The liberalised framework is expected to encourage broader foreign participation in India’s equity markets by expanding the investor base beyond NRIs and OCIs. The simplified banking arrangements and continued reliance on the existing reporting framework are likely to improve operational efficiency while maintaining regulatory oversight.<\/p>\n Authorised Dealer Banks, market intermediaries and listed companies should review their internal processes to ensure compliance with the revised operational guidelines and reporting requirements.<\/p>\n","protected":false},"excerpt":{"rendered":" 1) RBI Liberalises Special Non-Resident Rupee (SNRR) Account Framework The Reserve Bank of India (RBI), vide the Foreign Exchange Management (Deposit) (Sixth Amendment) Regulations, 2026 dated 18 June 2026, has significantly liberalised the regulatory framework governing Special Non-Resident Rupee (SNRR) Accounts. The amendments aim to simplify access to SNRR accounts, facilitate cross-border Rupee transactions, and […]<\/p>\n","protected":false},"author":6,"featured_media":16636,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[65],"tags":[57,172,49,173],"class_list":["post-16979","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fema","tag-fema","tag-nro","tag-rbi","tag-snrr"],"yoast_head":"\nKey Highlights<\/h2>\n
Removal of Business Interest Requirement<\/h3>\n
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Expanded Scope of Transactions<\/h3>\n
Transfer from NRO Accounts<\/h3>\n
Practical Implications<\/h3>\n
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2) RBI Restores Nine-Month Timeline for Realisation of Export Proceeds<\/h2>\n
Practical Implications<\/h3>\n
Key Highlights<\/h2>\n
Expanded Investor Eligibility<\/h3>\n
Repatriable INR Accounts<\/h3>\n
Reporting and Monitoring Framework<\/h3>\n
Reclassification from FPI to FDI<\/h3>\n
Compliance Requirements for Banks<\/h3>\n
Practical Implications<\/h3>\n