So far the banks which lent towards the company’s gold imports did so with extending letter of credit (LC) facilities (non-fund finance). But after the central banks restrictions, gold import against LC has become very difficult, close to impossible. As such, the company is asking for the conversion from non-fund credit limits into fund-based loans, reports say.
With the fall in the Indian Rupee, the company is also seeking loans to fund its import payments, reports add.
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