Introduction:
The RBI through its circular no RBI/2008-09/383 A. P. (DIR Series) Circular No. 51 dated February 13, 2009 facilitated all the firms and companies dealing in purchase / sale of rough or cut and polished diamonds / precious metal jewellery plain, minakari and / or studded with / without diamond and / or other stones, with a track record of at least 3 years in import / export of diamonds / coloured gemstones / diamond and coloured gemstones studded jewellery / plain gold jewellery, and having an average annual turnover of Rs 5 crore or above during preceding three licensing years, are allowed to open Diamond Dollar Accounts (DDA).
The request for opening of DDA is considered by the Reserve Bank on a case-to-case basis, subject to the provisions of the prevailing Foreign Trade Policy of the Government of India.
Benefits of opening a Diamond Dollar Accounts:
Permissible Credits
Ø Amount of pre-shipment and post-shipment finance availed in US Dollars.
Ø Realisation of export proceeds from shipments of rough, cut, polished diamonds and diamond studded jewellery.
Ø Realisation in US Dollars from local sale of rough, cut and polished diamonds.
Permissible Debits
o Payment for import / purchase of rough diamonds from overseas / local sources.
o Payment for purchase of cut and polished diamonds, coloured gemstones and plain gold jewellery from local sources.
o Payment for import/purchase of gold from overseas / nominated agencies and repayment of USD loans availed from the bank.
o Transfer to rupee account of the exporter. The above transactions are subject to the provisions of the Foreign Trade Policy of Government of India, issued from time to time.
RBI circular RBI/2011-12/440 A.P. (DIR Series) Circular No. 92 dated March 13, 2012: - Change in reporting:
Presently the RBI circular RBI/2011-12/440 A.P. (DIR Series) Circular No. 92 dated March 13, 2012 states that instead of monthly reports, quarterly reports giving details of the name and address of the firm / company in whose name the Diamond Dollar Account is opened, along with the date of opening / closing the Diamond Dollar Account are to be filed with effect from the quarter ended March 2012.
Such report is to be submitted within 10 of the month following the quarter to which it relates.
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