RBI/2009-10/199
A. P. (DIR Series) Circular No. 13
October 29, 2009
To
All Category – I Authorised Dealer Banks
Madam / Sir,
Opening of Diamond Dollar Accounts (DDAs) - Modification
Attention of Authorised Dealer Category - I (AD Category-I) banks is invited to
A.P. (DIR Series) Circular No. 51 dated February 13, 2009 delegating powers to
AD Category–I banks to open and maintain DDAs by eligible firms and companies
subject to certain terms and conditions. A reference has been made in the said
circular to Para 4A.19 of the Foreign Trade Policy 2004-2009 issued by the
Government of India in terms of which 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, are 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. A copy of
the Notification No. 96 (RE-2008)/ 2004-2009 dated March 13, issued by the
Government in this regard is annexed.
- Authorised Dealer Category–I banks may 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.
- The other terms & conditions mentioned in the A.P. (DIR Series) Circular No.
51 dated February 13, 2009 remain unchanged.
- AD Category - I banks may bring the contents of this circular to the notice
of their constituents and customers concerned.
6. The directions contained in this circular have been issued under Section 10
(4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are
without prejudice to permissions / approvals, if any, required under any other
law.
Yours faithfully,
( D. Mishra)
Chief General Manager
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
NOTIFICATION No. 96(RE-2008)/2004-2009
New Delhi, Dated the 13th March, 2009
S.O (E) – In exercise of powers conferred by Section 5 of the Foreign Trade
(Development and Regulation) Act, 1992 (No. 22 of 1992) read with Para 1.3 of
the Foreign Trade Policy, 2004-2009 (as amended from time to time), the Central
Government hereby makes the following amendment in Foreign Trade Policy:
- The first sub paragraph of Paragraph 4A.19 stands replaced by the following
clause:
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 two years
in import or export of diamonds / coloured gemstones/ diamond and coloured
gemstones studded jewellery / plain gold jewellery, and having an average annual
turnover of Rs. 3 crores or above during preceding three licensing years, may
also carry out their business through designated Diamond Dollar Accounts (DDA).
This issues in Public Interest.
(R.S. GUJRAL)
DIRECTOR GENERAL OF FOREIGN TRADE
AND EX-OFFICIO ADDITIONAL SECRETARY TO THE GOVT. OF INDIA
[Issued from File No. 01/94/180/09-10/G&J/AM09/PC 4]