Economics · Foreign Exchange Management Act (FEMA)
Considering the rules governing foreign currency and rupee accounts for non-residents in India, what unique feature distinguishes a Special Non-Resident Rupee (SNRR) account from a standard NRO account?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The SNRR account can only be opened by a person resident outside India who has a business interest in India for the purpose of putting through bona fide transactions in rupees.
- 2The SNRR account is essentially a savings account that can be used by any foreign citizen for personal investments in the Indian stock market under the PIS scheme.
- 3The SNRR account allows for the credit of any local funds without any limit, whereas NRO accounts are limited to one million USD per year for repatriation.
- 4The SNRR account is a non-interest-bearing account and must have a tenure coinciding with the duration of the specific contract or seven years, whichever is lower.✓
Correct answer
The SNRR account is a non-interest-bearing account and must have a tenure coinciding with the duration of the specific contract or seven years, whichever is lower.
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