Reserve Bank of India (RBI) has discontinued the issuance of letters of undertaking (LoU) and letters of comfort (LoC) for trade credit by banks. In an interview with CNBC-TV18, Sanjeev Bhatia, CFO of PC Jeweller detailed the impact.
PC Jeweller doesn’t import diamonds. We purchase cut and polished diamonds from within India, he said.
We have never used these documentary credit in our business. LoUs and LoCs were used more in loose diamonds, he added.
Expect demand to bounce back in the festive season of Navaratra, said Bhatia.
For full interview, watch accompanying video…
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