In exercise of the powers conferred by section 9 and clause e of subsection 2 of section 47 of the Foreign Exchange Management Act

## Report on the Sixth Amendment to Foreign Exchange Management Regulations Regarding Foreign Currency Accounts **1. Executive Summary:** This report analyzes the Reserve Bank of India's (RBI) Sixth Amendment to the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015. The amendment, enacted on April 29, 2025, modifies Schedule II of the principal regulations by extending the "two years" to "three years" associated with the application for opening Diamond Dollar Accounts. This change likely aims to influence the operational aspects of diamond-related foreign currency accounts held by residents of India. **2. Introduction:** This report aims to provide a clear and concise overview of the Sixth Amendment to the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015, based solely on the information provided in the official notification. The report outlines the key changes introduced by this amendment and its potential implications. **3. Policy Overview:** * **Original Policy:** Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015, Notification No. FEMA 10R2015RB dated January 21, 2016. * **Core Objective(s):** While the original policy's objectives are not explicitly stated in the provided text, it can be inferred that it relates to the management and regulation of foreign currency accounts held by Indian residents, likely to facilitate and monitor foreign exchange transactions in compliance with the Foreign Exchange Management Act, 1999. **4. Background and Rationale:** The provided text suggests that the amendment addresses a specific aspect of Diamond Dollar Accounts. The change from "two years" to "three years" regarding the application process may indicate a need for a longer timeframe for eligibility, review, or operational purposes related to these accounts. This could be due to changes in the diamond industry, regulatory adjustments, or a need for more robust oversight. **5. Key Provisions / Changes:** This amendment focuses specifically on modifying Schedule II of the original regulations, specifically within the "Annex Titled Application For Opening Diamond Dollar AccountS," and within the "First Paragraph". * **Specific Part Changed:** Schedule II, Annex Titled Application For Opening Diamond Dollar AccountS, First Paragraph. * **New Rule/Provision:** The phrase "2 Years" has been replaced with "Three Years." * **Effect of Change:** This change extends a specific timeframe relevant to the application for opening Diamond Dollar Accounts from two years to three years. The precise nature of this timeframe cannot be determined from the provided text alone; However, it is related to an eligibility criteria, or a condition. **6. Target Audience and Stakeholders:** The primary stakeholders affected by this amendment are: * **Indian residents involved in the diamond industry:** Specifically, those who hold or plan to open Diamond Dollar Accounts. * **Banks and financial institutions:** Involved in processing and managing Diamond Dollar Accounts. * **The Reserve Bank of India:** As the regulatory body responsible for overseeing foreign exchange management. **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Reserve Bank of India (RBI) is responsible for implementing and enforcing these regulations. * **Timelines:** The amendment came into effect on April 29, 2025 (date of publication in the Official Gazette). * **Procedures:** Financial institutions managing Diamond Dollar Accounts will need to update their application processes and documentation to reflect the change from "two years" to "three years". **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this change is to modify the operational parameters surrounding Diamond Dollar Accounts, giving the RBI greater oversight. The impact of this change may include: * Potential changes in the eligibility criteria or the duration for which certain conditions apply to Diamond Dollar Accounts. * Potential adjustments in the processing and monitoring of Diamond Dollar Account applications by financial institutions. * Enhanced regulatory oversight and potentially reduced risk associated with these accounts. **9. Conclusion:** The Sixth Amendment to the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015, represents a specific adjustment to the rules governing Diamond Dollar Accounts held by Indian residents. The extension of the "two years" timeframe to "three years" suggests a change in the operational requirements of diamond currency accounts held in India. This demonstrates the RBI's ongoing efforts to refine and adapt foreign exchange regulations in response to evolving needs and circumstances.

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