The 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.
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.
Taking into consideration the representations received from the diamond importers and the GJEPC, it has been decided, in consultation with the Government of India, that the Clean Credit i.e. credit given by a foreign supplier to its Indian customer/ buyer, without any Letter of Credit (Suppliers’ Credit) / Letter of Undertaking (Buyers’ Credit) / Fixed Deposits from any Indian financial institution for import of Rough, Cut and Polished Diamonds, may be permitted for a period not exceeding 180 days from the date of shipment, the RBI said in a notification on Monday.
The revised directions will come into force with immediate effect, it added.
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