SNRR Account: Current Rules for CCFE
A repatriable, non-interest rupee account for any non-resident, now without the old seven-year cap.
An SNRR account is a rupee account a non-resident opens to put through rupee transactions with India: paying for services, receiving rupee export proceeds, settling investments or trade invoiced in rupees. Unlike NRO, its balances are repatriable; unlike NRE, it is open to any non-resident, not just NRIs and PIOs.
It is also the account whose rules have changed most in the last two years. RBI's January 2025 and June 2026 amendments to the Deposit Regulations removed the conditions most study material still teaches, so this page states the current position first and the older one only to flag it.
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SNRR Account: Current Rules
- Who can open
- A person resident outside India. Pakistan and Bangladesh nationals, and entities incorporated there, need RBI's prior approval.
- Where
- With an authorised dealer in India, or its branch outside India, including a branch in an IFSC in India.
- Purpose
- Permissible current and capital account transactions with persons resident in India under FEMA, and bona fide transactions with persons resident outside India.
- Interest
- None. The SNRR account is non-interest bearing.
- Repatriability
- Balances are eligible for repatriation.
- Tax
- All transactions are subject to applicable Indian taxes.
- Funding from NRO
- Permitted within the USD 1 million per financial year facility that governs NRO repatriation.
- Becoming resident
- The account may be redesignated as a resident rupee account.
- Death of holder
- The non-resident nominee is paid into his NRO or NRE account, or by remittance through banking channels.
What Changed, and When
Each row is a rule that still appears in older notes and question banks.
Only a non-resident with a 'business interest in India' could open one
Change
Condition dropped (June 2026 amendment)
Current position
Any person resident outside India, for permissible transactions
Tenure capped at seven years; RBI approval to renew
Change
Seven-year cap deleted (January 2025)
Current position
No fixed cap
Tenure concurrent with the contract or business
Change
Deleted (June 2026)
Current position
No tenure condition
Account carries the nomenclature of the specific business; separate accounts per category
Change
Deleted (June 2026)
Current position
No naming or segregation requirement in the Direction
Transfers from NRO to SNRR prohibited
Change
Replaced (June 2026)
Current position
Allowed within the USD 1 million facility
| Older rule | Change | Current position |
|---|---|---|
| Only a non-resident with a 'business interest in India' could open one | Condition dropped (June 2026 amendment) | Any person resident outside India, for permissible transactions |
| Tenure capped at seven years; RBI approval to renew | Seven-year cap deleted (January 2025) | No fixed cap |
| Tenure concurrent with the contract or business | Deleted (June 2026) | No tenure condition |
| Account carries the nomenclature of the specific business; separate accounts per category | Deleted (June 2026) | No naming or segregation requirement in the Direction |
| Transfers from NRO to SNRR prohibited | Replaced (June 2026) | Allowed within the USD 1 million facility |
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What Has Not Changed
Operations in the SNRR account must not let the holder make foreign exchange available to a resident in India against rupees, or in any other manner. This is the anti-hawala line: the account cannot become a back door for residents to buy foreign currency outside the banking system.
Where a transfer between two non-residents through SNRR accounts falls outside FEMA compliance, the bank acts on the account holder's instruction stating the underlying purpose.
How CCFE Tests This (and Where Courseware Lags)
Typical MCQs ask whether SNRR earns interest (no), whether balances are repatriable (yes), and how SNRR differs from NRO. Older question banks also ask about the seven-year tenure and the business-interest test. In the exam, answer as the question frames it; if it asks for the current position, both conditions have been removed. RBI's own FAQ (January 2025) still shows the business-interest wording, which the June 2026 amendment superseded.
FAQs
What is an SNRR account?expand_more
A Special Non-Resident Rupee account that any person resident outside India can open with an AD bank in India or its branch abroad, to put through permitted rupee transactions with India. It is non-interest bearing and its balances are repatriable.
What is the difference between SNRR and NRO accounts?expand_more
SNRR balances are repatriable and earn no interest. NRO accounts can earn interest but are repatriable only for current income and up to USD 1 million per financial year for NRIs and PIOs.
Does an SNRR account still have a seven-year limit?expand_more
No. The seven-year cap was deleted in January 2025, and the remaining tenure condition was removed by RBI's June 2026 amendment.
Can money be transferred from NRO to SNRR?expand_more
Yes, since the June 2026 amendment, within the USD 1 million per financial year facility for remitting NRO balances. Earlier it was prohibited.
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