- 1 What rate should be applied for crystallization of overdue export bills?
- 2 What is overdue export bills?
- 3 What is LC crystallization?
- 4 What is crystallisation of foreign currency?
- 5 Can a forward contract be Cancelled?
- 6 What is usance bill?
- 7 Is ECGC mandatory?
- 8 Can we export without LC?
- 9 What is TT buy and TT sell?
- 10 What does crystallization mean?
- 11 What is negotiation of bills under LC?
- 12 What is Sfms confirmation?
- 13 What factors affect the exchange rate?
- 14 What are EEFC accounts?
- 15 What is diamond dollar account?
What rate should be applied for crystallization of overdue export bills?
Application of charges In case of overdue export bills sent on collection i.e. where proceed are not received in India within the stipulated period of 6 months, additional commission not exceeding Rs. 250/- per quarter shall be charged.
What is overdue export bills?
An overdue bill in the case of a demand bill, is a bill which is not paid before the expiry of the normal transit period, plus grace period and. in the case of a usance bill, is a bill which is not paid on the due date.
What is LC crystallization?
The process of converting foreign currency liability of the importer into Indian Rupee liability is called crystallization of import LC bills.The process of converting foreign currency liability of the exporter into Indian Rupee liability is called ‘ crystallization of foreign currency export bills’.
What is crystallisation of foreign currency?
In simple words, the process of converting foreign currency liability of the exporter into Indian Rupee liability is called ‘ crystallization of foreign currency export bills’. The purpose of crystallization is to transfer the exchange risk involved in a belated receipt of export bill payment to the exporter.
Can a forward contract be Cancelled?
b) Forward contracts booked by FIIs/QFIs/other portfolio investors, once cancelled, can be rebooked up to the extent of 10 per cent of the value of the contracts cancelled. The forward contracts booked by these investors may, however, be rolled over on or before maturity.
What is usance bill?
In international trade, usance is the allowable period of time, permitted by custom, between the date of the bill and its payment. The usance of a bill varies between countries, often ranging from two weeks to two months. It is also the interest charged on borrowed funds.
Is ECGC mandatory?
The full form of ECGC stands for Export Credit Guarantee Corporation Limited ( ECGC ), it is an open cover to credit insurance & a mandatory requirement for it.
Can we export without LC?
If exporter is aware that the credit worthiness of buyer is favorable and sound, he does not need to open a letter of credit to transact with such buyers.
What is TT buy and TT sell?
TT (Telegraphic Transfer) buying rate indicates the rate at which bank convert foreign inward remittances to INR. TT Selling rate indicates the rate at which the bank sends an outward remittance through telegraphic transfer.
What does crystallization mean?
Crystallization or crystallisation is the process by which a solid forms, where the atoms or molecules are highly organized into a structure known as a crystal. Some of the ways by which crystals form are precipitating from a solution, freezing, or more rarely deposition directly from a gas.
What is negotiation of bills under LC?
Bill Negotiation is a term used when the documents of the exporters are negotiated at the counters of banks and a facility is drawn out of it, post shipment. Clean Bills are negotiated and credited to exporters account upon receiving acceptance from the bank who issued the LC.
What is Sfms confirmation?
Structured Financial Messaging System ( SFMS ) is a secure messaging standard developed to serve as a platform for intra-bank and inter-bank applications. It allows the definition of message structures, message formats, and authorization of the same for usage by the financial community.
What factors affect the exchange rate?
Factors that influence exchange rates
- Interest rates.
- Change in competitiveness.
- Relative strength of other currencies.
- Balance of payments.
- Government debt.
- Government intervention.
What are EEFC accounts?
Exchange Earners’ Foreign Currency Account ( EEFC ) is an account maintained in foreign currency with an Authorised Dealer Category – I bank i.e. a bank authorized to deal in foreign exchange. Can interest be paid on these accounts? Ans. An EEFC account can be held only in the form of a current account.
What is diamond dollar account?
Diamond Dollar Account (DDA) scheme allows firms and companies dealing in purchase or sale of rough or cut and polished diamonds or precious metal jewellery with at least three years in import of export of precious metals or jewellery to carry out business through a Diamond Dollar Account.