DDAs are opened by companies dealing in purchase or sale of rough/cut & polished diamonds or with a track record of at least three years in import/export of diamonds and coloured gemstones and having an average annual turnover of Rs 5 crore or more in the preceding three licensing years (starting April-March 2010).
Diamond Dollar Account (DDA) scheme allows firms and companies dealing in purchase or sale of rough or cut and polished diamonds or precious metal jewellery with at least three years in import of export of precious metals or jewellery to carry out business through a Diamond Dollar Account.
FEATURES OF DIAMOND DOLLAR ACCOUNT
The various prominent features of DDA are as follows-
- The DDA shall be opened in the name of the exporter and maintained in US Dollars only.
- The account shall only be in the form of current account and no interest should be paid on the balance held in the account.
- No intra-account transfer should be allowed between the DDAs maintained by the account holder.
- 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 Accounts.
CREDITS PERMITTED TO DDA –
- Amount of pre-shipment and post-shipment finance availed in US Dollars.
- Realisation of export proceeds from shipments of rough, cut, polished diamonds and diamond studded jewellery.
- Realisation in US Dollars from local sale of rough, cut and polished diamonds.
DEBITS PERMITTED TO DDA
- Payment for import / purchase of rough diamonds from overseas / local sources.
- Transfer to rupee a/c of exporter.