Scrapping of LoUs by RBI will raise cost of credit: CII

Reacting to RBI's decision to scrap the system of issuing Letters of Undertaking (LoUs) and Letters of Comfort (LoC) by banks in the wake of the Rs 12,600 crore fraud on state-run Punjab National Bank (PNB), industry body CII said on Wednesday it would have a disruptive impact on the buyers credit market,