RBI Relaxes SNRR Account Norms To Push Rupee Transactions Outside India

On Friday, in an attempt to boost the internationalisation of the Indian rupee, the RBI (Reserve Bank of India) relaxed norms for the opening of special non-resident rupee (SNRR) accounts and permitted direct remittance from India into these accounts.

Non-residents have now been allowed to use SNRR accounts to maintain external commercial borrowings (ECBs) in rupees, retain rupee trade credits, and conduct business-related transactions in the Indian currency even outside international finance centres.

Foreigners can open a non-interest bearing SNRR account with a bank for legally permitted transactions in rupees.

RBI said it has been taking steps for "popularising the cross-border transactions in Indian rupee".

Earlier, several restrictions were placed on these accounts. It was also decided to remove the restriction on the tenure of SNRR account, which is currently seven years.

Meanwhile, the RBI also modified norms regarding re-export of unsold rough diamonds from a special notified zone of Customs without export declaration form (EDF) formality

"For the lot/ lots cleared at the center/s...Bill of Entry shall be filed by the buyer," its circular said.

Banks may permit such import payments after being satisfied with the bona-fides of the transaction, it added.