Inviting comments/suggestions on Draft Standard Operating Procedure (SOP) for reporting of Inward Remittance Messages pertaining to NBFC Factors.

Annexure-I Government of India /भारत सरकार Ministry of Commerce and Industry/ वाणिज्य एवं उद्योग मंत्रालय Department of Commerce / वाणिज्य णवभाग Directorate General of Foreign Trade /णवदेश व्यापार महाणिदेशालय

Dated: August, 2026 Vanijya Bhawan, New Delhi Draft Trade Notice No… /2026-27 To

1. All Exporters/Members of Trade & Industry

2. All Banking and Financial institutions

3. All Export Promotion Councils/Commodity Boards

Subject: Standard Operating Procedure (SOP) for reporting of IRMs pertaining to NBFC Factors -reg.

Reference is drawn to Trade Notice No. 12/2024-25 dated August 14, 2024, and Trade Notice No. 33/2023-24 dated November 10, 2023, wherein this Directorate introduced and subsequently enhanced the online self-certification mechanism for Electronic Bank Realisation Certificates (eBRCs). These initiatives aimed to streamline the reconciliation process of Electronic Bank Realisation Certificates

(eBRCs) and promote ease of doing business through digital enablement.

2. In this regard, to further streamline the reporting of inward remittances received through authorised NBFC Factors into the exporter’s account, the following Standard Operating Procedure (SOP) shall be followed by NBFC Factors and AD-I Banks:

• The NBFC Factor will use “AD-AD(P0092) EXP FACTORING PROCEED” text message in all their SWIFT messages while remitting factoring proceeds in foreign currency to AD-I Banks. To ensure that the AD-I Banks do not create IRMs against FCY funds received by them from the Factors.

• When the Factors are discounting export bills and releasing money into INR to AD-I Banks, AD-I Banks will not receive any Swift message in such scenario. If any customer approaches AD-I Banks to create IRMs against such INR funds, AD-I Banks should advise customers to approach the Factors only.

• While remitting funds to AD-I Banks, AD-III entities (factoring agencies) shall follow the prescribed process and ensure correct identification of factoring- related transactions.3. Further, the enhanced system facilitates the integration of remittance data associated with NBFC Factors, allowing exporters to view these IRMs on the DGFT portal and self-certify their eBRCs by matching the remittance details with the corresponding invoice or Shipping Bill records. This measure helps to improve transparency and accuracy in the export documentation process.

4. It is further informed that, RBI has notified the Foreign Exchange Management (Authorised Persons) Regulations, 2026 dated April 30, 2026, which has expanded the scope of permitted activities of AD Category II entities to include “Foreign trade transactions up to ₹25 lakh per transaction”. AD Category II entities may also be non- bank entities. Once licences are issued by RBI to applicants, these entities would also undertake reconciliation-related activities in DGFT system as well.

5. Help manual & Feedback:

User Manuals may be accessed on the DGFT website under the ‘Learn’ section (Application Help and FAQs -> eBRC). Stakeholders are also encouraged to provide their feedback via email to ebrc-dgft@gov.in

6. Support Channels:

For assistance, exporters may contact the DGFT Helpdesk through the toll-free number or raise a service ticket via the DGFT website under Services -> DGFT Helpdesk Service.

This Draft Trade Notice is issued with the approval of the competent authority. (Subha Laxmi) Deputy DGFT (Issued from File No.: 01/02/74/AM-24/EG&TF)