Ban On LoU to impact financial flexibility of importers
Banning of letters of undertaking (LoUs) and letters of comfort (LoCs) by the RBI as trade finance instruments is likely to reduce financial flexibility of importers. In the wake of Rs 13,000-crore PNB scam by diamond jewellery designer Nirav Modi and his associates through fraudulent LoUs, the central bank stopped banks from issuing the two […]
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