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Date: 15-Jan-2025 Category: Extra Ordinary State: Union Government Country: India

In exercise of the powers conferred by sub section 2 of section 6 and sub section 2 of section 47 of the Foreign Exchange Management Act

Issued by Reserve Bank of India · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • This gazette notification introduces the Foreign Exchange Management (Deposit) (Fifth Amendment) Regulations, 2025, which amends the Foreign Exchange Management (Deposit) Regulations, 2016.
  • The amendments primarily relate to Special Non-Resident Rupee (SNRR) accounts and the transfer of funds between repatriable Rupee accounts.

Key Changes

  • Authorised dealers in India or their branches outside India are now permitted to open SNRR accounts for persons resident outside India with business interests in India.
  • Transfer of funds between repatriable Rupee accounts is now permitted for all bona fide transactions.
  • The definition of entities that can open SNRR accounts has been broadened to include units in International Financial Services Centres (IFSC) for their business transactions outside IFSC.
  • The term 'Indian bank' in Schedule 4, paragraph 2 has been replaced with 'A bank'.
  • The tenure of SNRR accounts is now linked to the tenure of the contract, period of operation, or business of the account holder.
  • The words 'in India' have been inserted before 'SNRR account' in paragraphs 9, 11, and 12 of Schedule 4.
  • The words 'having the SNRR account in India' have been inserted after the words 'account holder' in paragraph 13 of Schedule 4.

Impact Analysis

Stakeholders Impacted

  • Reserve Bank of India: The RBI is responsible for monitoring and enforcing these regulations.

Suggested Action Items

  • The RBI should conduct awareness programs to educate stakeholders about the new regulations.

Key Entities Referenced

Foreign Exchange Management Act, 1999: The primary legislation governing foreign exchange transactions in India. Foreign Exchange Management (Deposit) Regulations, 2016: The principal regulations that are being amended by this notification. Special Non-Resident Rupee (SNRR) Account: A type of account that can be opened by persons resident outside India with business interests in India. International Financial Services Centre (IFSC): A special economic zone that provides financial services to non-residents. Special Economic Zones Act, 2005: The act under which IFSCs are established. Reserve Bank of India (RBI): The central bank of India responsible for regulating foreign exchange transactions. Authorised Dealer: Banks authorized by RBI to deal in foreign exchange. G.S.R. No. 389(E) dated April 1, 2016: Original notification of the principal regulations. G.S.R. No. 1093(E) dated 09.11.2018: Previous amendment to the principal regulations. G.S.R. No. 498(E) dated 16.07.2019: Previous amendment to the principal regulations. Notification No. FEMA 5(R)/(3)/2019-RB dated November 13, 2019: Previous amendment to the principal regulations. Notification No. FEMA 5(R)/(4)/2024-RB dated May 06, 2024: Previous amendment to the principal regulations.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-एम.एच.-अ.-15012025-260256 xxxGIDHxxx CG-MH-E-15012025-260256 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 39] नई कदल्ली, बुधर्ार, िनर्री 15, 2025/पौष 25, 1946 No. 39] NEW DELHI, WEDNESDAY, JANUARY 15, 2025/PAUSHA 25, 1946 भारतीय ररज़र् वबकैं (जर्दिे ी मद्रु ा जर्भाग) (केंद्रीय कायालव य) अजधसचू ना मुम् बई, 14 िनर्री, 2025 जर्देिी मद्रु ा प्रबधं (िमा) (पाचाँ र्ा ाँसिं ोधन) जर्जनयमार्ली, 2025 अजधसचू ना स.ं फेमा. 5 (आर)(5)/2025-आरबी.—जर्देिी मुद्रा प्रबंध अजधजनयम, 1999 (1999 का 42) की धारा 6 की उप-धारा (2) और धारा 47 की उप-धारा (2) द्वारा प्रदत्त िजियों का प्रयोग करते हुए भारतीय ररज़र्व बैंक जर्देिी मुद्रा प्रबंध (िमा) जर्जनयमार्ली, 2016 (01 अप्रैल 2016 की अजधसूचना सं.फेमा. 5 (आर)/2016-आरबी) (जिसे इसके बाद ‘मूल जर्जनयमार्ली) कहा िाएगा) में जनम्नजलजखत संिोधन करता है, यथा: - 1. सजं िप्त नाम एर् ंप्रारंभ: - i) यह जर्जनयमार्ली जर्देिी मुद्रा प्रबंध (िमा) (पााँचर्ााँ संिोधन) जर्जनयमार्ली, 2025 कहलाएगी। ii) यह सरकारी रािपत्र में इसके प्रकािन की तारीख से लागू होगी। 2. मूल जर्जनयमार्ली में, जर्जनयम 5 के उप जर्जनयम (4) के भीतर, “भारत में प्राजधकृत व्यापारी” िब्द के बाद “अथर्ा भारत के बाहर इसकी िाखा” अंतर्र्वष्ट ककया िाएगा। 384 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] 3. मूल जर्जनयमार्ली में, जर्जनयम 8 के बाद, जनम्नजलजखत को अंतर्र्वष्ट ककया िाएगा, यथा: - “9. प्रत्यार्तनव ीय रुपया खातों के बीच जनजधयों का अतं रण: - इस जर्जनयमार्ली में ककसी बात के होते हुए भी, इन जर्जनयमों के अनुसरण में रखे गए प्रत्यार्तवनीय रुपया खातों के बीच सभी सदाियी लेन-देनों के जलए जनजधयों के अंतरण की अनुमजत ह।ै “ 4. मूल जर्जनयमार्ली में, अनुसूची 4 में, मौिूदा पैराग्राफ 1 को जनम्नजलजखत के द्वारा प्रजतस्ट्थाजपत ककया िाएगा, यथा: - "भारत के बाहर जनर्ासी व्यजि, जिसका भारत में व्यार्साजयक जहत है, र्ह इस अजधजनयम के तहत बनाए गए जनयमों और जर्जनयमों के अनुसरण में, भारत में जनर्ासी व्यजि के साथ अनुमत चालू और पूंिी खाता लेनदेन करने और भारत के बाहर जनर्ासी व्यजि के साथ कोई लेनदेन करने के उद्देश्य से भारत में ककसी प्राजधकृत व्यापारी या भारत के बाहर उसकी िाखा में जर्िेष अजनर्ासी रुपया खाता (एसएनआरआर खाता) खोल सकता ह।ै स्ट्पष्टीकरण: जर्िेष आर्थवक िेत्र अजधजनयम, 2005 की धारा 18 के तहत, अंतरराष्ट्रीय जर्त्तीय सेर्ा केंद्र (IFSC) में जस्ट्थत इकाई IFSC के बाहर अपने व्यापाररक लेनदेन के उद्देश्य से भारत में (IFSC के बाहर) जस्ट्थत ककसी प्राजधकृत व्यापारी के साथ SNRR खाता खोल सकती ह।ै “ 5. मूल जर्जनयमार्ली में, अनुसूची 4 के पैराग्राफ 2 में "भारतीय बैंक" िब्द को "बैंक" द्वारा प्रजतस्ट्थाजपत ककया िाएगा। 6. मूल जर्जनयमार्ली में, अनुसूची 4 के र्तवमान पैराग्राफ 8 को जनम्नजलजखत द्वारा प्रजतस्ट्थाजपत ककया िाएगा, यथा:- "एसएनआरआर खाते की अर्जध अनुबंध की अर्जध/ पररचालन की अर्जध/ खाताधारक के व्यर्साय की अर्जध की समर्ती होगी। 7. मूल जर्जनयमार्ली में, अनुसूची 4 के पैराग्राफ 9, 11 और 12 के भीतर, "एसएनआरआर खाते" िब्दों के पहले "भारत में" िब्द अंतर्र्वष्ट ककए िाएंगे। 8. मूल जर्जनयमार्ली में, अनुसूची 4 के पैरा 13 के भीतर, "खाता धारक" िब्दों के बाद ", जिसका भारत में एसएनआरआर खाता हो," िब्द अंतर्र्वष्ट ककए िाएंगे। डॉ. आकदत्य गेहा, प्रभारी मुख्य महाप्रबंधक [जर्ज्ञापन-III/4/असा./895/2024-25] मूल जर्जनयमार्ली भारत सरकार के सरकारी रािपत्र- असाधारण – भाग- II, खण्ड 3, उप-खण्ड (i) िीएसआर संख्या 389 (ई), कदनांक 1 अप्रैल 2016 में प्रकाजित की गयी थी और इसे बाद में जनम्नजलजखत द्वारा संिोजधत ककया गया, यथा: - िीएसआर संख्या 1093(ई) कदनांक 09.11.2018 िीएसआर संख्या 498(ई) कदनांक 16.07.2019 अजधसूचना सं. फेमा 5(R)/(3)/2019-RB कदनांक 13 नर्ंबर, 2019 अजधसूचना सं. फेमा 5(R)/(4)/2024-RB कदनांक 06 मई, 2024 RESERVE BANK OF INDIA (Foreign Exchange Department) (CENTRAL OFFICE) NOTIFICATION Mumbai, the 14th January, 2025 Foreign Exchange Management (Deposit) (Fifth Amendment) Regulations, 2025 Notification No. FEMA 5(R)(5)/2025-RB.—In exercise of the powers conferred by sub-section (2) of section 6 and sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India makes the following amendment in the Foreign Exchange Management (Deposit) Regulations, 2016[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3 (Notification No. FEMA 5 (R) /2016-RB dated April 01, 2016) (hereinafter referred to as 'the principal regulations'), namely:- 1. Short Title and Commencement: - (i) These regulations may be called the Foreign Exchange Management (Deposit) (Fifth Amendment) Regulations, 2025. (ii) They shall come into force from the date of their publication in the Official Gazette. 2. In the principal regulations, within sub-regulation (4), of regulation 5, after the words “authorised dealer in India” the words “or its branch outside India” shall be inserted. 3. In the principal regulations, after regulation 8, the following shall be inserted namely:- “9.Transfer of funds between repatriable Rupee accounts:- Notwithstanding anything contained in these regulations, the transfer of funds, for all bona fide transactions, between repatriable Rupee accounts maintained in accordance with these regulations is permitted.” 4. In the principal regulations in schedule 4, the existing paragraph 1 shall be substituted by the following namely:- “A person resident outside India, having business interest in India, may open a Special Non-Resident Rupee Account (SNRR account), with an authorised dealer in India or its branch outside India for the purpose of putting through permissible current and capital account transactions with a person resident in India in accordance with the rules and regulations framed under the Act, and for putting through any transaction with a person resident outside India. Explanation: A unit in an International Financial Services Centre (IFSC) under section 18 of the Special Economic Zones Act, 2005 may open an SNRR account with an authorised dealer in India (outside IFSC) for its business related transactions outside IFSC.” 5. In the principal regulations within paragraph 2 of schedule 4, the words “Indian bank” shall be substituted by “A bank”. 6. In the principal regulations, in schedule 4, the existing paragraph 8 shall be substituted by the following namely:- “The tenure of the SNRR account shall be concurrent to the tenure of the contract / period of operation / the business of the account holder.” 7. In the principal regulations, within paragraphs 9, 11 and 12 of schedule 4, after the words “SNRR account” the words “in India” shall be inserted. 8. In the principal regulations, within paragraph 13 of schedule 4, after the words “account holder” the words “having the SNRR account in India” shall be inserted. Dr. ADITYA GAIHA, Chief General Manager-in-Charge [ADVT.-III/4/Exty./895/2024-25] The Principal Regulations were published in the Official Gazette of Government of India – Extraordinary – Part-II, Section 3, Sub-Section (i) dated G.S.R. No. 389(E) dated April 1, 2016 and subsequently amended vide the following, namely,- G.S.R. No. 1093(E) dated 09.11.2018 G.S.R. No. 498(E) dated 16.07.2019 Notification No. FEMA 5(R)/(3)/2019-RB dated November 13, 2019 Notification No. FEMA 5(R)/(4)/2024-RB dated May 06, 2024 Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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