PNB, others argue over RBI rules on credit facilities for import of pearls

PNB categorised pearls as semi-precious and precious stones in presenting its argument

A grey area in the Reserve Bank of India (RBI) guidelines on credit facilities for import of pearls has led to a conflict between public sector banks embroiled in the Rs 114-billion scandal related to fake issuance of Letters of Undertaking (LoUs) by Punjab National Bank.

There are nothing specific on availing of credit facility for trade of pearls, bankers note. The group of companies belonging to Nirav Modi and Mehul Choksi had sought loans for import of new pearls, PNB has told the investigative