RBI Increases Eligibility Requirement for Opening Diamond Dollar Accounts to Three Years of Trade Track Record [Read Notification]
The Reserve Bank of India has increased the eligibility requirement for opening Diamond Dollar Accounts from two to three years of trade track record.
![RBI Increases Eligibility Requirement for Opening Diamond Dollar Accounts to Three Years of Trade Track Record [Read Notification]](https://images.taxscan.in/h-upload/2025/06/07/2041627-eligibility-requirement.webp "RBI Increases Eligibility Requirement for Opening Diamond Dollar Accounts to Three Years of Trade Track Record [Read Notification]")
The Reserve Bank of India issued Notification dated April 29, 2025, increasing the eligibility requirement for opening Diamond Dollar Accounts (DDAs) from two years to three years of trade track record. This amendment, which came into effect immediately upon its publication in the Official Gazette, is part of the sixth amendment to the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015.
Key Amendment
As per the amendment, the RBI has revised the wording in Schedule II of the regulations, specifically in the annexed application form for opening a DDA. The phrase "a track record of at least 2 years" has now been replaced with "a track record of at least 3 years" in the relevant paragraph of the application.
This change affects firms or companies dealing in:
- Rough or cut and polished diamonds,
- Precious metal jewellery (plain, minakari, or studded with or without diamonds or other stones).
They must now demonstrate at least three years of active participation in import/export of diamonds, gemstones, and jewellery, along with maintaining an average annual turnover of Rs. 3 crore or more during the preceding three licensing years to qualify for a DDA.
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Effective Date
The amendment came into effect immediately upon publication in the Official Gazette on April 29, 2025.
What Are Diamond Dollar Accounts?
Diamond Dollar Accounts are special current accounts maintained in U.S. dollars by eligible exporters. These accounts facilitate smooth international transactions related to the diamond trade. Firms are permitted to open up to five DDAs, and no interest is paid on the balance maintained. The RBI regulates these accounts to ensure compliance with India’s foreign trade policy and to control the flow of foreign exchange in the high-value diamond sector.
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