What changed
RBI has mandated that AD Category-I banks submit a statement of DDA balances on a fortnightly basis, within seven days of the fortnight's end, to the specified RBI office. Previously, banks had delegated powers to open and maintain DDAs without such regular reporting requirements.
What it means for you
Banks handling Diamond Dollar Accounts now face a recurring reporting obligation, increasing compliance workload. This move likely aims to enhance monitoring of foreign exchange flows in the diamond sector, potentially impacting liquidity management and operational processes for lenders.
What you must do
- Set up internal systems to capture daily DDA balances in USD million and rupee equivalent for fortnightly reporting.
- Submit the statement in the annexed format to the Chief General Manager-in-Charge, Foreign Exchange Department, Trade Division, RBI, Mumbai, within seven days of each fortnight's end.
- Notify all relevant constituents and customers about this new reporting requirement.
- Ensure compliance with existing terms from earlier circulars (A.P. DIR Series Circular No. 51 dated Feb 13, 2009, and No. 13 dated Oct 29, 2009).
Who it affects
AD Category-I banks, Firms and companies maintaining Diamond Dollar Accounts
What is the deadline for submitting the DDA statement?
The statement must be submitted within seven days of the close of the fortnight to which it relates.
Where should the statement be sent?
It should be sent to the Chief General Manager-in-Charge, Foreign Exchange Department, Reserve Bank of India, Trade Division, 5th Floor, Amar Building, Mumbai – 400001.
Does this circular change any other terms for DDAs?
No, all other terms and conditions from the earlier circulars (A.P. DIR Series Circular No. 51 dated Feb 13, 2009, and No. 13 dated Oct 29, 2009) remain unchanged.