RBI enhanced the scope of SNRR
The Reserve Bank of India in consultation with the Government of India, has decided that in a bid to popularise internationalisation and cross-border transactions of the Indian Rupee, have issued norms, a scope for foreigners to open ‘Special Non-Resident Rupee (SNRR)’ accounts for purpose like trade credits and invoicing in INR, External commercial borrowing in INR and to conduct business-related transactions outside International Financial Service Centre (IFSC).
Earlier, SNRR accounts were under subject to several restrictions.
SNRR accounts are non-interest earning accounts, specially designed for non-residents which allows them to undertake Rupee transactions that are legally permitted.
In SNRR account, no operations are permissible after completion of seven years from the date of opening of the account.
Category: Economy & Banking Current Affairs