MUMBAI: India Inc wants letter of undertaking (LoU), which was banned by the Reserve Bank of India (RBI) in the wake of the Rs 13,000-crore Punjab National Bank (PNB) fraud, back.
The LoU ban has affected the industry, leading to a rise in the cost of credit, said Piruz Khambatta, President of Confederation of Indian Industry (CII), Western Region. “The RBI should reintroduce LoUs with proper safeguards as genuine importers are suffering,” he said in an interview with The Indian Express.
Credit: indianexpress.com
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