Rules of import of rough and polished diamonds eased: RBI

The Reserve Bank of India (RBI) gave relief to diamantaires in Mumbai and Surat as it relaxed the rules of ‘suppliers’ and buyers’ credit for importing rough, cut and polished diamonds to up to 180 days from 90 days with immediate effect.  In 2011, the RBI had decreased the import payment credit limit for the Indian diamantaires from 120 days to 90 days. If the 90-day period got lapsed, then the diamantaires were required to get permission from the RBI to make the payment which further delayed the process. Also, currency variations during this period were causing additional burden along with the interest cost for the diamond traders.
According to RBI notification, the “Clean Credit” i.e credit given by a foreign supplier to its Indian customer/buyer, without any letter of credit/letter of undertaking/fixed deposits from any Indian financial institution for import of rough, cut and polished diamond, may be permitted for a period not exceeding 180 days from the date of shipment. 

Month: Current Affairs - July, 2014