Mumbai, Jul 8 (KNN) In a move to help the diamond industry grow, the Reserve Bank of India (RBI) has allowed the local diamond merchants to take credit facility from their overseas counterparts for importing of rough, cut and polished diamonds. The credit facility will be available for a period of 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,” RBI said in a notification.

Earlier, the credit time for import of rough, cut and polished diamonds was 90 days.

The revised directions will come into force with immediate effect, it added.

RBI said foreign suppliers can offer credit without letter of credit, letter of undertaking, fixed deposits from any Indian financial institution. 

RBI said it took the decision after consideration of the representations received from the diamond importers and GJEPC (Gem and Jewellery Export Promotion Council). (KNN/SD)