In a move with direct consequences for expatriate payroll and cross-border project financing, the Reserve Bank of India (RBI) has issued the Foreign Exchange Management (Deposit) Sixth Amendment Regulations, 2026. Effective immediately, any person resident outside India may open a Special Non-Resident Rupee (SNRR) account without demonstrating a ‘business interest in India’—a test that has existed since 2016. The amendment also permits transfers from Non-Resident Ordinary (NRO) accounts into SNRR accounts and expressly allows SNRR accounts to be opened at International Financial Services Centre (IFSC) branches such as GIFT City. Five operational paragraphs in Schedule 4—covering account nomenclature, tenure caps and purpose restrictions—have been deleted, effectively transforming the SNRR into a quasi-current account for non-residents.
![RBI lifts ‘business-interest’ barrier for SNRR accounts, eases rupee banking for expatriates]()
For businesses navigating these changes, VisaHQ can streamline the visa and documentation process for foreign assignees headed to India. Its online platform (https://www.visahq.com/india/) helps HR and mobility teams secure the right entry visas, track application status and stay compliant with local regulations—complementing the operational flexibility that the new SNRR framework now provides.
For multinational companies seconding staff to India, the change means salaries and project-cost reimbursements can now flow through an SNRR without the administrative gymnastics of proving a specific underlying contract. Mobility teams can therefore use a single rupee account for multiple short-term assignments, while treasury departments gain a cleaner route for hedging local expenses. Authorised dealer banks must update KYC check-lists, core banking modules and FEMA reporting templates within 30 days. Compliance advisers warn that the liberalisation does not override other current- and capital-account restrictions, and that SNRR holders must still label transaction purpose codes correctly to avoid compounding penalties. Overall, the amendment aligns with the government’s push to internationalise the rupee and to position IFSC units as global treasury hubs—developments that global mobility and finance managers should monitor closely.
For businesses navigating these changes, VisaHQ can streamline the visa and documentation process for foreign assignees headed to India. Its online platform (https://www.visahq.com/india/) helps HR and mobility teams secure the right entry visas, track application status and stay compliant with local regulations—complementing the operational flexibility that the new SNRR framework now provides.
For multinational companies seconding staff to India, the change means salaries and project-cost reimbursements can now flow through an SNRR without the administrative gymnastics of proving a specific underlying contract. Mobility teams can therefore use a single rupee account for multiple short-term assignments, while treasury departments gain a cleaner route for hedging local expenses. Authorised dealer banks must update KYC check-lists, core banking modules and FEMA reporting templates within 30 days. Compliance advisers warn that the liberalisation does not override other current- and capital-account restrictions, and that SNRR holders must still label transaction purpose codes correctly to avoid compounding penalties. Overall, the amendment aligns with the government’s push to internationalise the rupee and to position IFSC units as global treasury hubs—developments that global mobility and finance managers should monitor closely.
