RBI Update - Foreign Exchange Management (Deposit) (Sixth Amendment) Regulations, 2026

The Reserve Bank of India has notified the Foreign Exchange Management (Deposit) (Sixth Amendment) Regulations, 2026, introducing significant liberalizations to the operation of deposit accounts by non-residents. The amendment inserts the definition of International Financial Services Centre (IFSC) and permits persons resident outside India to open, hold, and maintain Special Non-Resident Rupee (SNRR) Accounts with authorised dealers in India, their overseas branches, and branches located in IFSCs. It also expands permissible transfers by allowing credits to NRE accounts from NRO accounts and transfers from NRO accounts to NRE or SNRR accounts within the limits prescribed under the Foreign Exchange Management (Remittance of Assets) Regulations, 2016. Further, Schedule 4 has been substantially liberalized by permitting SNRR accounts to be used for permissible current and capital account transactions with residents as well as bona fide transactions with non-residents, deleting several existing operational restrictions, and enabling transfers between non-residents through SNRR accounts based on the account holder’s instructions specifying the underlying purpose of the transaction.