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Clarification on usage of SNRR Accounts for IFSC units

Written By

Priya Kapasi Shah

Published on

February 20,
2025

Last updated on

February 20, 2025
13:15

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https://treelife.in/news/clarification-on-usage-of-snrr-accounts-for-ifsc-units/

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IFSCA has amended the circular on permissible transactions through Special Non-Resident Rupee (SNRR) accounts to bring much-needed regulatory clarity and flexibility for IFSC units.

Previously, IFSC units faced restrictions on using SNRR accounts outside the IFSC for business-related transactions. Now, pursuant to this circular:

IFSC units now have the flexibility to manage business-related expenses in INR outside IFSC, i.e., they may also receive funds in INR like government incentives or sales proceeds.
Financial service-related transactions such as receipt of fees shall continue to stay within IFSC banking units.

This step simplifies operations for IFSC units and reinforces India’s growing role as a global financial hub. A welcome move to address industry needs!

Link to circular: https://lnkd.in/dpPx-SQ2

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About the Author

Priya Kapasi Shah

Associate Partner | Tax & Regulatory | priya.k@treelife.in

Heads Treelife’s Financial Advisory practice, specializing in investment structuring, cross-border transactions, and tax and regulatory advisory. Also leads on AIF setups and advisory services for GIFT IFSC.