Till now, advance payment without any limit and without a bank guarantee or standby letter of credit could be made only to notified mining companies by an importer, other than a public sector company or a department or undertaking of the Union or state governments. However, banks remitting the advance payments must adhere to certain conditions.
RBI says banks should undertake the transactions on their commercial judgment and after being satisfied about the genuineness of the rules. The foreign mining company should have the recommendation of the Gems and Jewellery Export Promotion Council. The importer should be a recognised processor of roughs, with a good record. Advance payments should be strictly as in the rbi contract and made directly to the account of the company concerned - that is, to the ultimate beneficiary, not through numbered accounts or otherwise.
The Know Your Customer and due- diligence exercise should be done by the banks as the rules prescribe. Banks should follow-up on the filing of the bill of entry and other documents evidencing the import of roughs. RBI has also delegated the powers of compounding i. Rules Reserve Bank of India RBI has liberalised the procedure for facilitating the import of rough diamonds termed roughs in the trade.
Henceforth, RBI will not notify the names of foreign mining companies from which such an importer may import roughs by way of advance payments and without any limit or bank guarantee or standby letter of credit. Upgrade To Premium Services. Business Standard is happy to inform you of the launch of "Business Standard Premium Services". As a premium subscriber you get an across device unfettered access to a range of services which include:.
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