[Legallands LLP] It provides regulations of RBI for opening, holding and maintaining of Foreign Currency Accounts and the limits up to which amounts can be held in such accounts by a person resident in India.


With Ref. to the Notification No.FEMA 10 (R) /2015-RB as amended upto February 27, 2019

(In exercise of the powers conferred by Section 9 and clause (e) of sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in supersession of Notification No. FEMA 10/2000-RB dated May 3, 2000, as amended from time to time.)


  1. Exchange Earners’ Foreign Currency Account
  2. Resident Foreign Currency Account
  3. Resident Foreign Currency (Domestic) Account
  4. A Unit in a Special Economic Zone (SEZ)
  5. Diamond Dollar Accounts (DDAs)
  6. Exporters
  7. Other Cases


  1. Accounts of authorised dealers or their branches
  2. Account by a company/ firm in the name of its office/ branch/ representative outside India
  3. Exporters
  4. For making Overseas Direct Investment
  5. Accounts in respect of Start-ups
  6. Other Cases



An Authorized Dealer Category-I bank in India may allow firms and companies who comply with the eligibility criteria stipulated in the Foreign Trade Policy of Government of India, in force from time to time and the directions as may be issued by Reserve Bank of India, from time to time, to open, hold and maintain Diamond Dollar Accounts (DDAs) in India subject to the terms and conditions of the DDA Scheme.

  1. Firms and companies may open and maintain DDA with AD Category–I banks, subject to the following terms and conditions:-
    1. The exporter should comply with the eligibility criteria stipulated in the Foreign Trade Policy of the Government of India, issued from time to time.
    2. The DDA shall be opened in the name of the exporter and maintained in US Dollars only.
    3. The account shall only be in the form of current account and no interest should be paid on the balance held in the account.
    4. No intra-account transfer should be allowed between the DDAs maintained by the account holder.
    5. An exporter firm/ company shall be permitted to open and maintain not more than 5 DDAs.
    6. The balances held in the accounts shall be subject to Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements.
    7. 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
  2. Permissible Credits:-
    1. Amount of pre-shipment and post-shipment finance availed in US Dollars.
    2. The realisation of export proceeds from shipments of rough, cut, polished diamonds and diamond-studded jewellery.
    3. The realisation in US Dollars from local sale of rough, cut and polished diamonds.
  3. Permissible Debits:-
    1. Payment for import/ purchase of rough diamonds from overseas/ local sources.
    2. Payment for purchase of cut and polished diamonds, coloured gemstones and plain gold jewellery from local sources.
    3. Payment for import/ purchase of gold from overseas/ nominated agencies and repayment of US Dollars loans availed from the bank.
    4. Transfer to rupee account of the exporter.


Know more about the Diamond Dollar Scheme and Opening, Holding and Maintaining a Foreign Currency Account outside/inside India.


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