The Reserve Bank of India (RBI) has notified the Foreign Exchange Management (Deposit) (Sixth Amendment) Regulations, 2026, effective from the date of publication in the Official Gazette, amending the Foreign Exchange Management (Deposit) Regulations, 2016. The amendment introduces the definition of International Financial Services Centre (IFSC) by adopting the meaning under the IFSCA Act, 2019. It 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. The scope of SNRR accounts has been expanded to facilitate permissible current and capital account transactions with residents and bona fide transactions with non-residents. The amendment also permits specified transfers from NRO accounts to NRE and SNRR accounts within limits prescribed under the FEMA Remittance of Assets Regulations, 2016, deletes certain Schedule 4 provisions, and introduces a framework for transactions between non-residents through SNRR accounts based on account holder instructions indicating the underlying purpose.
RESERVE BANK OF INDIA
(Foreign Exchange Department)
(CENTRAL OFFICE)
NOTIFICATION
Mumbai, the 18th June, 2026
Foreign Exchange Management (Deposit) (Sixth Amendment) Regulations, 2026
F. No. FEMA 5(R)(6)/2026-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, (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) (Sixth Amendment) Regulations, 2026.
(ii) They shall come into force from the date of their publication in the Official Gazette.
2. In the principal regulations, in regulation 2, after clause (v), the following shall be inserted namely:-
“(v-a) ‘International Financial Services Centre’ or ‘IFSC’ shall have the same meaning as assigned to it in clause (g) of section 3 of the International Financial Services Centres Authority Act, 2019 (50 of 2019).”
3. In the principal regulations, the sub-regulation (4) of regulation 5, shall be substituted by the following namely:-
“Any person resident outside India may open, hold and maintain with an authorised dealer in India or its branch outside India (including in an IFSC in India), a Special Non-Resident Rupee Account (SNRR account), specified in Schedule 4.”
4. In the principal regulations, in Schedule 1, in paragraph 3, after clause (j), the following shall be inserted namely:-
“(k) Transfer from NRO account within the limit specified in Regulation 4 of Foreign Exchange Management (Remittance of Assets) Regulations, 2016.”
5. In the principal regulations, in Schedule 3, in sub-paragraph (B) of paragraph 3, after clause (iv), the following shall be inserted namely:-
“(v) Transfer to NRE or SNRR account within the limit specified in Regulation 4 of Foreign Exchange Management (Remittance of Assets) Regulations, 2016.”
6. In the principal regulations, in Schedule 4, the existing paragraph 1 shall be substituted by the following namely:-
A person resident outside India may open a Special Non-Resident Rupee Account (SNRR account), with an authorised dealer in India or its branch outside India (including in an IFSC in 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 bona fide transaction with a person resident outside India.
7. In the principal regulations, in Schedule 4, the existing paragraphs 2,5,6,7,8 shall be deleted.
8. In the principal regulations, in Schedule 4, the existing paragraph 10 shall be substituted by the following namely:-“Transfer from NRO account to SNRR account shall be in accordance with the Schedule 3 of these regulations.”
9. In the principal regulations, in schedule 4, after paragraph 15, the following shall be inserted namely:-
“16. Transactions between persons resident outside India involving the SNRR accounts, which may not be subject to compliance under the Act, or the Rules and Regulations framed thereunder, are to be effected by the AD bank based on instructions/mandate from the account holder that shall indicate the underlying purpose of the transfer.”
N SENTHIL KUMAR, Chief General Manager
[ADVT.-III/4/Exty./177/2026-27]
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
Notification No. FEMA 5(R) (5)/2025-RB dated January 14, 2025
