RBI relaxes rough diamond import norms

Allows a diamantaire to directly import the stones from any overseas mine
RBI relaxes rough diamond import norms

The Reserve Bank of India (RBI) has relaxed its norms for rough diamond imports into India, and will not restrict the number of overseas mining companies from where rough diamonds can be imported into India, reports say. According to reports, the RBI stated that it would no longer notify ‘the names of overseas mining companies from whom an importer may import rough diamonds into India, by way of advance payments, without any limit or bank guarantee or standby letter of credit.’

The RBI had in the past identified nine companies in consultation with the GJEPC including DTC, Rio Tinto, BHP Billiton, Alsosa, Gokharan, Endiama EP, where an importer could import rough diamonds and make advance remittance without any limit and without a bank guarantee or standby letter of credit for import of roughs.

With the new ruling, the Indian diamantaire can import rough diamonds from any overseas mining company directly and taking advance remittance from the banks, reports say. Also, banks are allowed now to determine which foreign mining company can an importer make advance payments on the same basis of no limit or bank guarantee or standby letter of credit, although the mining company must have recommendations from GJEPC, reports say.

The industry views this move will encourage the small and medium diamond importers who until now were heavily dependent on the secondary market, and also allow the industry overall to gain more supply, reports say.


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