RBI has banned the issuance of Letter of Undertaking ( LoUs) and Letter of Comfort (LOC) to companies for import on all the banks of the country. However, Letter of Credit and Bank Guarantee can be offered only with certain conditions. It is believed that the RBI has decided to ban such scams after the Nirav Modi fraud. At the same time, Finance Minister Arun Jaitley has said that Nirav Modi has jointly issued 1212 LOUs in 74 months to PNB.


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