The Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce and Industry, has invited comments and suggestions from exporters, banking and financial institutions, NBFC Factors, Export Promotion Councils, Trade Bodies and other stakeholders on a Draft Standard Operating Procedure (SOP) for reporting of Inward Remittance Messages (IRMs) pertaining to NBFC Factors. The consultation has been initiated through Trade Notice No. 20/2026-27 dated 12 August 2026.
The initiative forms part of DGFT’s continuing efforts to enhance transparency, efficiency and ease of doing business in the export remittance reconciliation process. The proposed SOP seeks to establish a streamlined mechanism for reporting inward remittances relating to export transactions involving NBFC Factors and to facilitate seamless generation and self-certification of Electronic Bank Realisation Certificates (eBRCs).
The Draft SOP builds upon the online eBRC self-certification framework introduced and subsequently strengthened through Trade Notice No. 33/2023-24 dated 10 November 2023 and Trade Notice No. 12/2024-25 dated 14 August 2024. These measures were aimed at simplifying reconciliation of export remittances and promoting digital enablement in the foreign trade ecosystem.
Under the proposed procedure, where an NBFC Factor remits factoring proceeds in foreign currency to an AD-I Bank, the Factor will use the prescribed text message “AD-AD(P0092) EXP FACTORING PROCEED” in its SWIFT message. This identification is intended to ensure that AD-I Banks do not independently create IRMs against foreign currency funds received from Factors.
The Draft SOP further provides that where Factors discount export bills and release funds in Indian Rupees (INR) to AD-I Banks, no SWIFT message would ordinarily be received by the AD-I Bank for such transactions. In cases where an exporter approaches an AD-I Bank for creation of an IRM against such INR funds, the Bank would advise the exporter to approach the concerned Factor for the appropriate remittance reporting.
It has also been proposed that AD-III entities/factoring agencies, while remitting funds to AD-I Banks, should follow the prescribed process and ensure correct identification of factoring-related transactions. The measure is expected to bring greater consistency in reporting and reduce the possibility of duplicate or incorrect creation of inward remittance records.
The enhanced DGFT system is intended to facilitate integration of remittance data associated with NBFC Factors, enabling exporters to view the relevant IRMs on the DGFT portal and self-certify their eBRCs by matching remittance details with the corresponding export invoice or Shipping Bill records. The proposed mechanism is expected to improve the accuracy, transparency and efficiency of export documentation and remittance reconciliation.
The Draft SOP also takes note of the Foreign Exchange Management (Authorised Persons) Regulations, 2026, notified by the Reserve Bank of India on 30 April 2026, which have expanded the scope of permitted activities of Authorised Dealer Category-II entities to include foreign trade transactions of up to ₹25 lakh per transaction. AD Category-II entities may also include non-bank entities. Upon issuance of the requisite licences by the RBI, such entities are also expected to undertake relevant reconciliation-related activities in the DGFT system.
DGFT has invited all concerned stakeholders, including exporters, banking institutions, NBFC Factors, Export Promotion Councils, Trade Bodies and other interested parties, to carefully examine the Draft SOP and provide their comments, suggestions and inputs for further consideration.
Comments and suggestions may be submitted within 30 days from the date of publication of Trade Notice No. 20/2026-27 through email at ebrc-dgft@gov.in. Stakeholders have been requested to clearly mention “Comments on Draft SOP for reporting of IRMs pertaining to NBFC Factors” in the subject line of the email.
For guidance on the eBRC mechanism, user manuals are available on the DGFT website under the ‘Learn’ section – Application Help and FAQs → eBRC. Exporters may also seek assistance through the DGFT Helpdesk toll-free facility or raise a service ticket through Services → DGFT Helpdesk Service on the DGFT website.
The Trade Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/08/Trade-Notice-20-for-seeking-inputs-on-SOP.pdf
