Mumbai: To popularise cross-border transactions in Indian rupee, the Reserve Bank has enhanced the scope of ‘Special Non-resident Rupee’ (SNRR) by allowing persons residing outside India to open such accounts for purposes like external commercial borrowing and trade credit in INR.
The RBI, in a notification on Friday, said: “With a view to promoting the usage of INR products by person resident outside India, it has been decided, in consultation with the Government of India, to expand the scope of SNRR Account by permitting person resident outside India to open such account for external commercial borrowings in INR;
trade credits in INR…”
Other purposes for allowing such a move are for export or import invoicing and business-related transactions outside International Financial Service Centre, all in INR.
Further, the RBI, in consultation with the government, decided to rationalize certain other provisions for SNRR Account like removing the restriction on the tenure of the SNRR account for the purposes given above.
“Apart from Non-Resident Ordinary (NRO) Account, permit the credit of amount due or payable to a non-resident nominee from the account of a deceased account holder to Non-Resident External (NRE) Account or direct remittance outside India through normal banking channels,” the notification said.