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<em>On the 16th of January 2018, three diamond firms approached Punjab National Bank requesting LOUs. (Letter of Undertaking is a form of bank guarantee under which its customers can raise money from any other Indian bank’s foreign branch in the form of a short-term credit). Punjab National Bank demanded 100% cash margins (profitability) as a common requirement to issue LOUs. But, the firms responded back stating this requirement was not enforced for the previous LOUs they received since 2010.</em>