The Dollar Business Bureau The Reserve Bank of India (RBI) on Tuesday scrapped issuance of guarantees in the form of Letter of Undertaking (LoU) and Letter of Comfort (LoC) by the commercial banks, with immediate effect. The latest regulatory clampdown by the RBI came in the wake of fraud in Punjab National Bank (PNB), as the regulator tries to plug a loophole and improve due diligence in trade credit by banks.  However, the regulator said that the Letters of Credit and bank guarantees may continue to be issued, subject...