dda - rbi circular

8/12/2019 DDA - RBI Circular

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CIR. NO. 51/2008-09-RB, DT. 13/02/2009

Opening of Diamond Dolla !""o#n$% & 'i(eali%a$ion

Attention of Authorised Dealer Category - I (AD Category I) banks is invited to A. D.

(M.A. Series) Circular o. !" dated May !#$ %""" and &ara 'A.! of the oreign *rade

&olicy %""'-%"" regarding the Dia+ond Dollar Account Sche+e in ter+s of ,hichfir+s and co+anies dealing in urchase sale of rough or cut and olished dia+onds

recious +etal /e,ellery lain$ +inakari and or studded ,ith ,ithout dia+ond and or

other stones$ ,ith a track record of at least 0 years in i+ort e1ort of dia+onds coloured ge+stones dia+ond and coloured ge+stones studded /e,ellery lain gold

/e,ellery$ and having an average annual turnover of 2s 3 crore or above during receding

three licensing years$ are allo,ed to oen Dia+ond Dollar Accounts (DDA). *he re4uestfor oening of DDA is considered by the 2eserve 5ank on a case-to-case basis$ sub/ect to

the rovisions of the revailing oreign *rade &olicy of the 6overn+ent of India.

%. 7ith a vie, to liberalising the rocedure$ it has been decided to delegate o,ers to AD

Category I banks to er+it such fir+s and co+anies to oen and +aintain DDA ,ithAD Category I banks$ sub/ect to the follo,ing ter+s and conditions8

a. *he e1orter should co+ly ,ith the eligibility criteria stiulated in the oreign *rade

&olicy of the 6overn+ent of India$ issued fro+ ti+e to ti+e.

b. *he DDA shall be oened in the na+e of the e1orter and +aintained in 9S Dollars

only.

c. *he account shall only be in the for+ of current account and no interest should be aidon the balance held in the account.

d. o intra-account transfer should be allo,ed bet,een the DDAs +aintained by theaccount holder.

e. An e1orter fir+ co+any shall be er+itted to oen and +aintain not +ore than 3DDAs.

f. *he balances held in the accounts shall be sub/ect to Cash 2eserve 2atio (C22) andStatutory :i4uidity 2atio (S:2) re4uire+ents.

g. ;1orter fir+s and co+anies +aintaining foreign currency accounts$ e1cluding ;;C

accounts$ ,ith banks in India or abroad$ are not eligible to oen Dia+ond DollarAccounts.

h. *he transactions in the DDA ,ould be as under8

)emi%%i(le Cedi$%

< A+ount of re-shi+ent and ost-shi+ent finance availed in 9S Dollars.


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< 2ealisation of e1ort roceeds fro+ shi+ents of rough$ cut$ olished dia+onds and

dia+ond studded /e,ellery.

< 2ealisation in 9S Dollars fro+ local sale of rough$ cut and olished dia+onds.

)emi%%i(le De(i$%

< &ay+ent for i+ort urchase of rough dia+onds fro+ overseas local sources.

< &ay+ent for urchase of cut and olished dia+onds$ coloured ge+stones and lain gold

/e,ellery fro+ local sources.

< &ay+ent for i+orturchase of gold fro+ overseas no+inated agencies and

reay+ent of 9SD loans availed fro+ the bank.

< *ransfer to ruee account of the e1orter.

*he above transactions are sub/ect to the rovisions of the oreign *rade &olicy of6overn+ent of India$ issued fro+ ti+e to ti+e.

0. *he e1orter fir+ co+any shall +ake an alication in the for+at anne1ed to theAD Category I bank for oening of the DDA. AD Category - I banks should assess the

track record of the fir+ co+any at the end of every licensing year (Aril-March). In

case any fir+ co+any fails to +eet the eligibility criteria$ the account +ay be closed

i++ediately.

'. AD Category - I banks shall sub+it a +onthly reort to the Chief 6eneral Manager-in-

Charge$ oreign ;1change Deart+ent$ 2eserve 5ank of India$ *rade Division$ A+ar5uilding$ Mu+bai '""""!$ giving details of the na+e and address of the fir+

co+any in ,hose na+e the Dia+ond Dollar Account is oened$ along ,ith the date of

oening closing the Dia+ond Dollar Account$ by the !" thof the follo,ing +onth to,hich it relates.

3. ecessary a+end+ents to the oreign ;1change Manage+ent (oreign Currency

Accounts by a &erson 2esident in India) 2egulations$ %""" (otification o. ;MA.!"%"""-25 dated May 0$ %""") are being issued searately.

#. AD Category - I banks +ay bring the contents of this circular to the notice of theirconstituents and custo+ers concerned.

=. *he directions contained in this circular have been issued under Sections !"(') and!!(!) of the oreign ;1change Manage+ent Act$ ! ('% of !) and are ,ithout

re/udice to er+issions arovals$ if any$ re4uired under any other la,.

Yours faithfully,


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(Salim Gangadharan)Chief General Manager-in-Charge

Annex[A. P. (!" Series) Cir#ular $o. %& dated 'eruary &, *++

APPLICATION FOR OPENING DIAMOND DOLLAR

ACCOUNT

*o$

*he 5ranch Manager

(na+e > address of bankbranch)

Dear Sir$

7e are dealing in urchase sale of rough or cut and olished dia+onds recious +etal

/e,ellery lain$ +inakari and or studded ,ith ,ithout dia+ond and or other stones$

,ith a track record of at least 0 years in i+ort e1ort of dia+onds colouredge+stones dia+ond and coloured ge+stones studded /e,ellery lain gold /e,ellery$

and having an average annual turnover of 2s 3 crore or above during receding three

licensing years.

%. 7e ,ish to oen a current accounts under the Dia+ond Dollar Account Sche+e ,ith

your bank in accordance ,ith the rovisions of (+ention the relevant aragrah) of the

oreign *rade &olicy (eriod e.g. %""'-%"") of the 6overn+ent of India read ,ith the?andbook of &rocedures (+ention the relevant @olu+e o.) issued by Ministry of

Co++erce > Industry$ 6overn+ent of India.

0. *he relevant articulars are furnished belo,8

&. $ame of the 'irm Com/any 0

*. Address of the "egistered1ffi#e

0

. Prin#i/al usiness 02. !3 Code $o. 0

%. Annual 4urno5er of the last

three Years (en#lose #ertifi#ate

of CA)

0

6. etails of the 33'C a##ount,if any

0

'. 7e confir+ that ,e are not +aintaining any foreign currency account$ e1cluding ;;C

account$ ,ith banks in India or abroad.


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3. 7e declare that ,e are not +aintaining +ore than 3 DDAs including the one roosed

to be oened ,ith your branch.

#. 7e declare that ,e are neither on the caution list of e1orters of 2eserve 5ank of India

nor on the defaulters list of ;1ort Credit 6uarantee Cororation of India :td (;C6C).

=. 7e undertake to abide by the rules of the Dia+ond Dollar Account Sche+e fra+ed to

be fra+ed fro+ ti+e to ti+e and the ter+s and conditions stiulated for oening and

+aintenance of the DDA ,ith your bank and any other foreign e1change foreign traderegulation of 2eserve 5ank of India 6overn+ent of India.

7e re4uest you to oen a Dia+ond Dollar Accounts in the na+e of the fir+co+any.

(Signature of the Authoried Bfficial of the fir+ co+any)

$ame 0esignation 0

Seal of firm #om/any 0ate 0

Pla#e 0

25I%""-"00

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