Opening of Diamond Dollar Accounts (DDAs) - Modification
In terms of Para 4A.19 of the Foreign Trade Policy 2004-2009, 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 crores or above during preceding three licensing years, were allowed to open Diamond Dollar Accounts (DDAs).
The Government has since relaxed the eligibility criteria of the track record of at least 3 years to 2 years and the average annual turnover of Rs.5 crores or above to Rs. 3 crores or above during preceding three licensing years.
RBI wants the Authorised Dealer Category–I banks to note the revised eligibility criteria notified by the Government while permitting eligible firms and companies to open and maintain DDAs with them. They are also advised to be guided by Foreign Trade Policy (FTP) in force from time to time, in future.
RBI CIRCULAR NO. 13/RBI., Dated: October 29, 2009