Friday, April 8, 2016
Import of Rough, Cut and Polished Diamonds- Modification
AD Category - I banks are permitted to approve Clean Credit i.e. credit given by a foreign supplier to its Indian customer, without any LC/LU/FD, for import of Rough, Cut and Polished Diamonds, for a period not exceeding 180 days from the date of shipment.
It has now been decided to delegate the powers for permitting such clean credit exceeding 180 days to the AD banks, subject to:
i) The genuineness of the transaction and no payment of interest for the additional period
ii) The reasons for such extension are due to financial difficulties or quality disputes.
iii) The importer requesting for such extension is not under investigation.
iv) The importer seeking extension is not a frequent offender.
v) AD banks may allow such extension up to 180 days, beyond which they may refer the cases to respective Regional Office of the Reserve Bank.
Based on RBI Circular dt 31/03/16. Please visit www.rbi.org.in for any further clarification if required….. Poppy