RBI also barred lenders from issuing letters of comfort (LoC) as trade credit for importing goods into India with immediate effect. RBI also barred lenders from issuing letters of comfort (LoC) as trade credit for importing goods into India with immediate effect. It, however, allowed banks to continue to issue letters of credit and bank guarantees. ALSO READ: Arun Jaitley says Nirav Modi got 1,213 fake PNB LoUs in 6 years“I see only limited impact because gems and jewellery sector was the main sector availing LoUs/LoCs. Charges on such credit had already started rising as banks became more cautious following the PNB fraud.

Source: Mint March 13, 2018 13:39 UTC