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Bring LoUs Back: Fieo Requests RBI

April 24, 2018

Bring LoUs Back: Fieo Requests RBI

The Reserve Bank of India (RBI) was recently approached by the top exporters’ body i.e. Federation of Indian Export Organization (Fieo) regarding the lifting of the ban on the Letter of Undertakings (LoU) which was put by the central bank after the Nirav Modi scam.

Fieo said that the ban is highly detrimental towards exports and may make the industry uncompetitive. It also said that the gems and jewellery sector has already shrunk 36% since the LoU restrictions were imposed by the RBI.

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