Diamond Dollar Account – Firms and companies which comply with the eligibility criteria stipulated in the Foreign Trade Policy of the Government of India may open DDA accounts. The salient features of the Scheme are:
- An entity with a track record of at least 2 years in import / export of diamonds /coloured gemstones / diamond and coloured gemstones studded jewelry /plain gold jewelry, and having an average annual turnover of Rs 3 crore or above during preceding three licensing years is eligible for opening DDA.
- The DDA shall be opened in the name of the exporter and maintained in US Dollars only.
- Realization of export proceeds and local sales (in USD) of rough, cut, polished diamonds; and pre and post shipment finance availed in USD can be credited to such account.
- Payments for purchase of rough, cut and polished diamonds can be made from DDA account. Funds can also be transferred to rupee account of the exporter.
- The account should be maintained in the form of a non-interest-bearing current account.
- The sum total of the accruals in the account during a calendar month should be converted into Rupees on or before the last day of the succeeding calendar month after adjusting for utilization of the balances for approved purposes or forward commitments.
- An exporter firm/ company shall be permitted to open and maintain not more than 5 DDAs.
- The balances held in the accounts shall be subject to Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements.
- Exporter firms and companies maintaining foreign currency accounts, excluding EEFC accounts, with banks in India or abroad, are not eligible to open Diamond Dollar Account.
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