Draft SOP for Reporting of Inward Remittance Messages (IRMs)
DGFT Draft SOP for Reporting of Inward Remittance Messages (IRMs) Related to NBFC Factors
DGFT Seeks Stakeholder Feedback on Draft SOP for NBFC Factor-Related IRMs
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, has invited comments and suggestions on a proposed Standard Operating Procedure (SOP) concerning the reporting of Inward Remittance Messages (IRMs) arising from export transactions handled through NBFC Factors.
The initiative is intended to make export-remittance reconciliation more efficient and facilitate the generation of Electronic Bank Realisation Certificates (eBRCs) through the DGFT system.
Why has DGFT proposed this SOP?
DGFT has been working to simplify the reconciliation of export proceeds and improve the digital processing of eBRCs. The proposed procedure specifically addresses situations where export proceeds are received through authorised NBFC Factors.
Under the proposed mechanism, exporters would be able to identify the relevant remittance information on the DGFT portal and use it for self-certification of eBRCs against the corresponding export documents.
Proposed Procedure for NBFC Factors and Banks
1. Foreign-currency factoring proceeds
Where an NBFC Factor sends factoring proceeds in foreign currency to an AD Category-I bank, the Factor is required to include the following text in its SWIFT communication:
“AD-AD(P0092) EXP FACTORING PROCEED”
The purpose of this identification is to ensure that the receiving AD-I bank does not create a separate IRM for the foreign-currency funds received from the Factor.
2. Factoring proceeds released in Indian Rupees
In cases where an NBFC Factor discounts export bills and releases the proceeds in INR to an AD-I bank, the bank may not receive a corresponding SWIFT message.
If an exporter approaches the AD-I bank requesting creation of an IRM for such INR proceeds, the exporter should instead be directed to approach the concerned Factor.
3. Role of factoring agencies
AD Category-III entities/factoring agencies remitting funds to AD-I banks are expected to follow the applicable process and ensure that transactions connected with factoring arrangements are properly identified.
Integration with DGFT eBRC System
The proposed system is intended to enable remittance information relating to NBFC Factors to flow into the DGFT ecosystem.
Exporters would consequently be able to:
- View the relevant IRM details on the DGFT portal;
- Match the remittance information with the applicable Shipping Bill or invoice;
- Self-certify their eBRCs through the online system; and
- Improve the accuracy and traceability of export-realisation reporting.
This is expected to reduce reconciliation difficulties and provide greater visibility over export proceeds received through factoring arrangements.
Impact of RBI’s 2026 Authorised Persons Regulations
The draft SOP also refers to the Foreign Exchange Management (Authorised Persons) Regulations, 2026, notified by the Reserve Bank of India on 30 April 2026.
The regulations have expanded the permitted activities of AD Category-II entities to cover foreign trade transactions up to ₹25 lakh per transaction.
Since AD Category-II entities may include non-bank entities, such entities, after obtaining the necessary RBI authorisation, may also participate in reconciliation-related activities within the DGFT system.
Comments Invited from Stakeholders
DGFT has invited feedback from stakeholders, including:
- Exporters and members of the trade community;
- Banks and financial institutions;
- NBFC Factors;
- Export Promotion Councils;
- Commodity Boards;
- Trade associations; and
- Other interested stakeholders.
Comments and suggestions may be submitted within 30 days from the date of publication of Trade Notice No. 20/2026-27.
Stakeholders should send their submissions by email to: ebrc-dgft@gov.in
The subject line should clearly state: “Comments on Draft SOP for reporting of IRMs pertaining to NBFC Factors”
Help and Support
DGFT has stated that user manuals relating to the eBRC functionality are available through the Learn section of its website under Application Help and FAQs → eBRC.
Exporters requiring assistance can also use the DGFT Helpdesk by calling the applicable toll-free number or by raising a service request through Services → DGFT Helpdesk Service on the DGFT portal.
Key Takeaway
The proposed SOP is aimed at addressing the reporting and reconciliation of export proceeds where factoring arrangements involve NBFC Factors. By establishing a clearer process for IRM reporting and integrating the relevant remittance information with the DGFT portal, the proposed framework seeks to make eBRC generation simpler and improve transparency in export-realisation reporting.
Trade Notice: 20/2026-27
Date: 12 August 2026
Authority: Directorate General of Foreign Trade (DGFT)
Feedback Period: 30 days from publication
Email: ebrc-dgft@gov.in
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