Section 4(2) in Foreign Exchange Management (Deposit) Regulations, 2016
(2)Deposits held by diplomatic missions and diplomatic personnel in special rupee accounts namely Diplomatic Bond Stores Account to facilitate purchases of bonded stocks from firms and companies who have been granted special facilities by customs authorities for import of stores into bond, subject to following conditions:(a)Credits to the account shall be only by way of proceeds of inward remittances received from outside India through banking channels or by a transfer from a foreign currency account in India of the account holder maintained with an authorised dealer in accordance with clause 3 of this Regulation ;(b)All cheque leaves issued to the account holder shall be superscribed as "Diplomatic Bond Stores Account No.";(c)Debits to the accounts shall be for local disbursements, or for payments for purchases of bonded stocks to firms and companies who have been granted special facilities by customs authorities for import of stores into bond;(d)The funds in the account may be repatriated outside India without the approval of Reserve Bank.
