Question

Once an overdue foreign currency export bill is crystallized by the bank, how are the exporter’s account and credit terms affected?

Q: Answer-Once an overdue foreign currency export bill is crystallized by the bank, how are the exporter’s acc...

Upon crystallisation 1. The exporters account is debited in Rupees. 2. The credit converts into a domestic Rupee loan. 3. Concessional export credit interest benefits cease, and normal commercial lending rates along with penal interest apply to the crystallized amount.

A The debt is forgiven, and the exporter receives an official government subsidy.

B The facility continues in foreign currency with a reduced concessional interest rate.

C The liability becomes a Rupee loan, the exporter loses concessional export credit rates, and standard lending rates (plus potential penal interest) apply.

D The exporter's account is credited in foreign currency to offset the overdue bill.

E The exporter is prohibited from executing any domestic sales for 3 years.

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