Rough Diamond Import: Advance Remittance Expanded to Two More Mining Firms
Current · Source: Reserve Bank of India · RBI/2008-09/117 · issued 04 Aug 2008 · ~1 min read
Quick answerRBI expands advance remittance facility for rough diamond imports to include Rio Tinto (Belgium) and BHP Billiton (Belgium), with no limit or bank guarantee required for non-government importers.
The rule, in the simplest words
Banks can now process advance remittances for rough diamond imports from Rio Tinto (Belgium) and BHP Billiton (Belgium) without a bank guarantee or limit.
Only non-government importers can use this facility.
AD Category-I banks must follow the conditions from the March 2007 circular, including reporting requirements.
How it plays out — a real example
Ramesh, a forex & trade-finance officer in Indore, helps a local jeweller, Rohan, import rough diamonds from Rio Tinto (Belgium) without needing a bank guarantee. Ramesh verifies that Rohan is not a government entity and follows the necessary reporting requirements, making the import process smoother for Rohan's business.
What changed
RBI added Rio Tinto (Belgium) and BHP Billiton (Belgium) to the list of mining companies eligible for advance remittance without limit or bank guarantee for rough diamond imports. The existing conditions from the March 2007 circular remain unchanged.
What it means for you
Banks can now process advance remittances for rough diamond imports from two additional suppliers, easing trade finance for the gems and jewellery sector. This reduces documentation burden for importers and AD banks, as no bank guarantee or standby LC is needed for these transactions.
What you must do
Update internal systems to include Rio Tinto (Belgium) and BHP Billiton (Belgium) as eligible entities for advance remittance.
Ensure compliance with all conditions from A.P. (DIR Series) Circular No. 34 dated March 2, 2007, including reporting requirements.
Inform your constituents and customers about the expanded list of approved mining companies.
Verify that the importer is not a public sector company or government entity before processing such remittances.
Who it affects
AD Category-I banks, Importers of rough diamonds (non-government entities), Gems and Jewellery Export Promotion Council (GJEPC)
❓ Common questions
What is the key change in this circular?
Two new mining companies—Rio Tinto (Belgium) and BHP Billiton (Belgium)—have been added to the list of suppliers eligible for advance remittance without limit or bank guarantee for rough diamond imports.
Are there any new conditions for these remittances?
No. All existing terms and conditions from the March 2007 circular, including reporting in the specified format, remain unchanged.
Who cannot use this facility?
Public sector companies and government departments/undertakings are not permitted to use this advance remittance facility.
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/117
A. P. (DIR Series) Circular No. 03
August 04, 2008
To
All Category – I Authorised Dealer Banks
Madam / Sir,
Advance Remittance for Import of Rough Diamonds
Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to A. P. (DIR Series) Circular No.34 dated March 02, 2007 in terms of which AD Category - I banks have been permitted to make advance remittance without any limit and without bank guarantee or standby letter of credit, by an importer (other than a Public Sector Company or a Department / Undertaking of the Government of India / State Government/s), for import of rough diamonds into India from the undernoted mining companies, subject to certain conditions :
i) Diamond Trading Company Pvt. Ltd., UK,
ii) RIO TINTO, UK,
iii) BHP Billiton, Australia,
iv) ENDIAMA, E. P. Angola,
v) ALROSA, Russia, and
vi) GOKHARAN, Russia.
2. Based on the recommendations made by the Gems and Jewellery Export Promotion Council (GJEPC), it has been decided to include the undernoted mining companies in addition to the six mining companies listed above.
(i) RIO TINTO, Belgium, and
(ii) BHP Billiton, Belgium.
3. The terms and conditions mentioned in A. P. (DIR Series) Circular No. 34 dated March 02, 2007 , including submission of report in the format annexed to the above circular, shall remain unchanged.
4. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
5. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Salim Gangadharan)
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/117 · issued 04 Aug 2008. The plain-English explanation above is BankPulse’s own independent summary.
Update internal systems to include Rio Tinto (Belgium) and BHP Billiton (Belgium) as eligible entities for advance remittance.
📜 Compliance
Ensure compliance with all conditions from A.P. (DIR Series) Circular No. 34 dated March 2, 2007, including reporting requirements.
Inform your constituents and customers about the expanded list of approved mining companies.
Verify that the importer is not a public sector company or government entity before processing such remittances.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an IT/Systems lead at a bank this circular applies to (AD Category-I banks, Importers of rough diamonds (non-government entities), Gems and Jewellery Export Promotion Council (GJEPC)), your first concrete step on “Rough Diamond Import: Advance Remittance Expanded to Two More Mining Firms” is: “Update internal systems to include Rio Tinto (Belgium) and BHP Billiton (Belgium) as eligible entities for advance remittance.” (RBI issued this 04 Aug 2008).
Circular: RBI/2008-09/117 -- Rough Diamond Import: Advance Remittance Expanded to Two More Mining Firms
Issued: 04 Aug 2008
Action required: Update internal systems to include Rio Tinto (Belgium) and BHP Billiton (Belgium) as eligible entities for advance remittance.
Action required: Ensure compliance with all conditions from A.P. (DIR Series) Circular No. 34 dated March 2, 2007, including reporting requirements.
Action required: Inform your constituents and customers about the expanded list of approved mining companies.
Action required: Verify that the importer is not a public sector company or government entity before processing such remittances.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4405&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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