RBI allows diamond merchants to take credit from overseas suppliers

Kolkata: Reserve Bank of India has allowed local diamond merchants to avail credit facility from their overseas counterparts for importing of rough, cut and polished diamonds.

It was a long time demand from local diamond merchants. This would help them grow business.

The credit facility will be available for a period not exceeding 180 days from the date of shipment without any letter of credit and collateral.

RBI said foreign suppliers can offer credit without letter of credit, letter of undertaking, fixed deposits from any Indian financial institution.

RBI said it took the decision after consulting with the government.