RBI Increases Experience Requirement for Opening Diamond Dollar Accounts to 3 Years
Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Sixth Amendment) Regulations, 2025
F. No. FEMA 10 (R)(6)/2025-RB.—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), the Reserve Bank of India makes the following amendment in the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015 [Notification No. FEMA 10(R)/2015-RB dated January 21, 2016] (hereinafter referred to as ‘the principal regulations’) namely:
- Short Title And Commencement:-
(i) These regulations shall be called the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Sixth Amendment) Regulations, 2025.
(ii) They shall come into force with effect from the date of their publication in the Official Gazette. - Amendment to Schedule II:
In The Principal Regulations, In Schedule Ii, In The Annex Titled ‘Application For Opening Diamond Dollar Account/S’, In The First Paragraph, For The Words And Figures “2 Years”, The Words “Three Years” Shall be Substituted.
Summary
The Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) (Sixth Amendment) Regulations, 2025 is a small but important change made by the Reserve Bank of India (RBI) under the FEMA Act, 1999. Here’s a simple breakdown of what it means:
🔍 What has changed?
In the 2015 regulations, under Schedule II, there is a section called:
‘Application For Opening Diamond Dollar Account/s’
Earlier, this form mentioned that the applicant must have at least 2 years of experience in the diamond trade.
🆕 New Amendment (2025):
Now, the RBI has replaced “2 years” with “Three Years”.
✅ In Simple Terms:
To open a Diamond Dollar Account (DDA) — which is a special type of foreign currency account allowed for diamond traders — a resident Indian must now have:
- At least 3 years of experience in the diamond business,
- instead of the earlier 2 years requirement.
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