What is Crystallization of Export Bills?
If the export bills do not realize within 30 days from the Notional due date, the bank would convert the Rupee amount back into the foreign currency & sell them in the currency market.
It will be done at TT selling rate. If as per the prevailing market rate the amount realized is in shortfall/excess shall be recovered from the borrower or passed on to him. This process is termed as CRYSTALLIZATION OF EXPORT BILL.