Advance Remittance for Import of Rough Diamonds
Presently, RBI had notified the names of 9 mining companies to whom an importer (other than a Public Sector Company (PSC) or a Department/Undertaking of the Government of India/State Government) could make advance remittance without any limit and without bank guarantee or stand by letter of credit for import of rough diamonds into India.
This circular provides that henceforth RBI will not notify the names of mining companies to whom an importer (other than a Public Sector Company (PSC) or a Department/Undertaking of the Government of India/State Government) could make advance remittance without any limit and without bank guarantee or stand by letter of credit for import of rough diamonds into India.
Henceforth, banks can decide, subject to certain conditions, on overseas mining companies to whom an importer (other than PSC or Department/Undertaking of Government of India/State Government) can make advance payments, without any limit / bank guarantee/stand-by letter of Credit for import of rough diamonds into India.
In case of an importer entity in the Public Sector or a Department/Undertaking of the Government of India/State Government/s, banks can permit advance remittance subject to satisfaction of the applicable conditions and a specific waiver of bank guarantee from the Ministry of Finance, Government of India, where the advance payments is equivalent to or exceeds US $ 100,000.
Banks have to submit a report of all advance remittances made without a bank guarantee or standby letter of credit, where the amount of advance payment is equivalent to or exceeds US $ 5,000,000, to the concerned Regional Office of Reserve Bank of India, in the format annexed to this circular, within 15 calendar days of the close of each half year.
