In order to facilitate payment by foreign diplomatic personnel in India for their purchases from bonded stocks held by firms and companies which have been granted special facilities for import of stores into bond, arrangements have been made for maintenance of special bank accounts styled as Diplomatic Bond Store Accounts by such diplomatic personnel. Authorised dealers may open such accounts denominated in rupees subject to the following conditions :

(a) Credits to the accounts may be effected only out of proceeds of remittances received from abroad through banking channels in any of the permitted currencies or in rupees from non-resident bank account.

(b) Before allowing any cheques to be drawn on a special account, authorised dealer concerned should apply to Reserve Bank and obtain a code number for the account. Applications for code numbers should state name and designation of the account holder and manner in which credits are proposed to be made to the account. There is no objection to a single account being utilized for more than one official. In such cases details in respect of all the beneficiaries should be advised.

(c) All cheque leaves issued to account holders in respect of the special accounts should be superscribed Diplomatic Bond Store Account No. .....

(d) Debits to the accounts may be freely permitted for local disbursements but remittance of funds outside India will require prior approval of Reserve Bank.

(e) Authorised dealers maintaining such special accounts should forward to Reserve Bank by the 10th of each month a statement in form DBS, listing (1) credits to the accounts during the previous month together with source of each credit and (2) payments made, stating numbers of the cheques and names of the payees.

(Note:- see
1. A.P.(Dir Sr.)Cir. No.17/2001-RB, dt.15/12/2001)