The Reserve Bank of India (RBI) in its notification of July 7, 2014 said that after consulting with the Government of India, it was decided that net loans, that is, loans provided by foreign suppliers to its Indian customers or buyers without registration letters of credit (loans from suppliers), letters of commitment (loans from buyers), time deposits from any Indian financial institution for the import of diamonds and diamonds, may be allowed for a period not exceeding 180 days from date of shipment. The revised RBI instructions take effect immediately.
This step of the RBI was followed by demarches by diamond importers through industry organizations such as the Gems and Jewelery Export Promotion Council (GJEPC), the Surat Diamond Association (SDA) and others in the the benefit of increasing up to 180 days of the 90-day credit period established by the Circular of the Central Bank of India No. 59 of May 6, 2011, according to which banks belonging to Category 1 are allowed to approve loans provided by suppliers and buyers as well as payment of letters of credit for imports of rough diamonds and diamonds issued for a period not exceeding 90 days from the date of shipment.