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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

    About the Author
    Priya Kapasi Shah
    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.

    We Are Problem Solvers. And Take Accountability.

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