LoUs are used by a bank’s customer to avail short-term credit in a foreign country. These transactions are not retail in nature and are mostly used by businesses for import of goods. The borrower uses ...

MUMBAI (Reuters) - The Reserve Bank of India (RBI) ordered commercial banks on Tuesday to stop issuing with immediate effect guarantees in the form of letters of undertaking - which are at the heart ...

Letters of Credit and Bank Guarantees for Trade Credits for imports into India may continue to be issued subject to compliance with RBI provisions Advisory Alert: It has come to our attention that ...

A parliamentary panel today asked Reserve Bank of India (RBI) to restore Letters of Undertaking (LoUs) -- banned after their misuse in the Rs 14,000 crore Punjab National Bank (PNB) scam -- at the ...

The Rs 12,700-crore fraud at Punjab National Bank has prompted the Reserve Bank of India to ban the use of letters of undertaking and letters of comfort. LoUs and LoCs are two of the instruments ...