The Reserve Bank of India (RBI) on June 23, 2026, issued the Foreign Exchange Management (Deposit) (Sixth Amendment) Regulations, 2026, further to amend the Foreign Exchange Management (Deposit) Regulations, 2016.
This shall come into force from June 22, 2026.
The following has been amended:
• The amendments introduce the definition of IFSC and permit non-residents to open, hold, and maintain SNRR accounts with authorised dealer banks in India, their overseas branches, and branches located in IFSCs.
• The amendments allow transfers from NRO Accounts to NRE Accounts and SNRR Accounts within the remittance limits prescribed under the Foreign Exchange Management (Remittance of Assets) Regulations, 2016. SNRR accounts may now be used for all permissible current and capital account transactions with residents in India, as well as bona fide transactions with other non-residents.
• Several restrictive provisions relating to SNRR accounts have been removed by deleting existing paragraphs 2, 5, 6, 7 and 8 of Schedule 4, thereby simplifying the operational framework. The regulations also clarify that transfers from NRO accounts to SNRR accounts shall be governed by the existing remittance provisions.
• Further, authorised dealer banks have been permitted to process transactions between non-residents through SNRR accounts based on the account holder’s instructions or mandate specifying the underlying purpose of the transfer, even where such transactions may not require compliance under FEMA regulations.
[Notification no. - FEMA 5(R)(6)/2026-RB]
