India’s Gem and Jewelry Promotion Export Council (GJEPC) has expressed approval for the move made by the Reserve Bank of India (RBI) to allow banks in the authorized dealer categories to extend credit periods beyond 180 days, according to IDEX Online. The move is regarded as a bid to ease operational difficulties faced by Indian importers.
In order to extend credit, the bank must apply certain conditions, explains IDEX Online, including being satisfied of the genuineness of the reason and bonafides of the transaction and to also not charge interest for the additional period.
“GJEPC has been asking the government for some relaxation in this regard and we are grateful that they have taken this step,” said convener of the GJEPC’s Banking, Insurance and Taxation Sub-Committee Ajesh Mehta.
“It is a very positive one for the diamond industry, particularly in the current market scenario. Manufacturers will now have a certain flexibility in dealing directly with their bankers in cases where circumstances beyond their control lead to delays,” concludes Mehta.
