International Financial Services Centres Authority (IFSCA) has issued a circular directing all IFSC Banking Units (IBUs) to provide internet banking facilities for Special Non-Resident Rupee (SNRR) accounts. This follows the recent amendment to the Foreign Exchange Management (Deposit) Regulations, 2016, notified on January 14, 2025, allowing SNRR accounts of IFSC units to be used for business transactions. The directive mandates that internet banking services, including information, interactive exchange, and transactional services, should be made available for these accounts. IBUs are required to coordinate with their banks to ensure the early implementation of this facility. Additionally, they must submit quarterly status reports to the IFSCA starting with the quarter ending March 31, 2025, within 15 days after each quarter, until the service is operationalized.
International Financial Services Centres Authority
Circular No. F No. IFSCA-FMPP0BR/4/2024-Banking /2 Dated: January 29, 2025
To,
All IFSC Banking Units
Madam/Sir,
Internet banking facilities for the Special Non-Resident Rupee (SNRR) accounts of IFSC units – Amendment
1. As you would be aware, recent amendment to the Foreign Exchange Management (Deposit) Regulations, 2016 (“the regulations”) notified on January 14, 20251, now permits SNRR accounts of IFSC units opened with authorised dealers to be used for all business related transactions of the IFSC unit.
2. The Authority had previously directed the IBUs to provide internet banking services to their clients2. It is expected that internet banking services of all the types mentioned in the said circular (i.e. Information service, Interactive information exchange service and Transactional service) should also be made available for SNRR accounts of IFSC units.
3. IBUs are therefore directed to take up the matter of providing internet banking services to SNRR accounts of IFSC units with the appropriate department of their bank for an early rollout of such services.
4. IBUs shall submit a status report to the Authority on this matter every quarter starting with the quarter ended March 31, 2025 (to be submitted within 15 days from the end of every quarter) until such facility is opertaionalised.
Yours faithfully
(Supriyo Bhattacharjee)
Chief General Manager
Department of Banking Regulation
Notes:-
1 Foreign Exchange Management (Deposit) (Fifth Amendment) Regulations, 2025 dated January 14, 2025, issued by the Reserve Bank of India ( Notification No. FEMA 5(R)(5)/2025-RB)
2 Circular no. IFSCA-FMPP0BR/5/2024-Banking/1 dated April 22, 2024
