New Delhi: The Reserve Bank on Saturday eased the norms for import of rough diamonds from six mining companies.
The six companies include Rio Tinto, UK-based Diamond Trading Company Pvt Ltd, Russia's Alrosa and Gokharan, Endiama E P, Angola and BHP Billiton of Australia.
It has authorised banks to allow advance remittance without limit, bank guarantee or standby letter of credit to diamond processing companies.
But this liberalisation will not be applicable to a public sector company or department or to any undertaking of either the central or state governments.
The banks must, however, ensure that the importer is a recognised processor of rough diamonds as per a list to be approved by Gems and Jewellery Export Promotion Council (GJEPC).
Besides, the banks should be satisfied about bonafides of the transaction and ensure that advance payments are made strictly as per terms of sale contract and also directly to the account of the company concerned and not through numbered accounts or otherwise.
Banks must also ensure that remittances are not permitted for import of conflict diamonds.
The RBI said banks should follow-up submission of the bill of entry and other documents of the importer in terms of rules, regulations and directions issued in this regard.
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