ForumIAS LATEST
- CSAT Classes for Prelims 2027 by Rishi Bhargav sir starts 2 Nov. at 5 PM Click Here to know more →
- Prelims Sprint classes for Prelims 2027 start 2 Nov. Click Here to know more →
Post-scam, RBI stops issue of LoUs
What happened?
- In the wake of an escalating controversy over the Nirav Modi-centred scam at the Punjab National Bank (PNB), the Reserve Bank of India (RBI) has decided to discontinue the practice of providing guarantees by issuing letters of undertaking (LoUs) and letters of comfort (LoCs) for trade credits for imports to India with immediate effect.
- The decision will apply to AD (authorised dealer) category-I banks.
