What changed
Previously, firms had to apply to RBI on a case-by-case basis to open a Diamond Dollar Account. Now, AD Category-I banks can directly approve and open DDAs for eligible exporters, subject to conditions like a minimum average annual turnover of Rs 5 crore over three licensing years and a three-year track record in diamond/gemstone trade.
What it means for you
Banks can now onboard eligible diamond and jewellery exporters faster, reducing RBI's direct involvement. However, banks must ensure strict compliance with eligibility criteria, monitor accounts annually, and report monthly to RBI. DDAs are non-interest-bearing current accounts in USD only, with no intra-account transfers and a limit of five accounts per exporter.
What you must do
- Update internal policies to delegate DDA opening authority to designated branches/officials.
- Verify exporter eligibility: 3-year track record, average annual turnover of Rs 5 crore or above in preceding three licensing years.
- Ensure DDAs are opened as non-interest-bearing current accounts in USD only, with no intra-account transfers.
- Monitor compliance at end of each licensing year and close accounts if eligibility criteria are not met.
- Submit monthly report to RBI (Foreign Exchange Department, Trade Division) by 10th of following month with account details.
Who it affects
AD Category-I banks, Diamond and gemstone exporters, Jewellery exporters (plain, studded, minakari), Firms dealing in rough/cut/polished diamonds and precious metal jewellery
What is the minimum turnover required for a firm to open a Diamond Dollar Account?
The firm must have an average annual turnover of Rs 5 crore or above during the preceding three licensing years.
Can an exporter open more than one Diamond Dollar Account?
Yes, but the limit is a maximum of five DDAs per exporter firm or company.
Are balances in Diamond Dollar Accounts subject to CRR and SLR?
Yes, the balances held in DDAs are subject to Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements.