Banks issue a Bank Realisation Certificate (BRC) to confirm an exporter has received payment from importer/international clients for goods or services. It’s proof of inward remittance exporters require to stay compliant with RBI and DGFT rules.
Export businesses in India have to go to and fro—submitting, applying, and following up for documents. It’s exhausting but it is necessary.
One document that adds to the list is the Bank Realisation Certificate (BRC).
Since a Bank Realisation Certificate is a non-negotiable document for exporters, it’s important to understand the following:
what a BRC is, who issues it, why it is mandatory, when it is required, and how you can use it to apply for government incentives.
What is a Bank Realisation Certificate (BRC)?
A Bank Realisation Certificate (BRC) is an official document your bank issues to confirm that you have received payment from an overseas buyer against your export of goods or services.
The BRC works as:
• Proof of inward foreign remittance for your exports.
• Evidence of compliance with the Reserve Bank of India (RBI) and Directorate General of Foreign Trade (DGFT) regulations.
• A prerequisite for claiming export benefits from the Indian government.
Banks record every export transaction in the Export Data Processing and Monitoring System (EDPMS).
Once payment is received and verified against your shipping bills or SOFTEX forms, the bank issues the BRC.
What is an e-BRC?
Until 2012, exporters had to physically visit banks to collect a signed paper BRC, then submit it to DGFT to claim benefits. This process was slow, manual, and prone to errors.
To solve this, the government introduced the Electronic Bank Realisation Certificate (e-BRC) system. Under this, banks directly upload BRC data to the DGFT server in digital format. Exporters can log in and download their e-BRCs online anytime.
Who Issues an e-BRC?
Authorized Dealer (AD) banks (the banks through which the exporter receives foreign currency payments) issue the e-BRC. Once they confirm receipt of the payment and verify all required export-related documents, they digitally generate and sign the e-BRC.
They then upload the digitally signed document to the DGFT portal.
How to Download an e-BRC Online?
Exporters can easily download their e-BRCs from the DGFT portal. Here’s the step-by-step process:
- Visit the DGFT website and log in with your IEC and password.
- Go to My Dashboard > Repositories.
- Under Bills Repository, click Explore.
- Select Bank Realisations (e-BRC).
- Enter your date range and click Search.
- Download or print the relevant e-BRC uploaded by your bank.
e-BRC Format
The standard e-BRC format includes details such as:
• Exporter’s name and IEC code
• Bank’s name and AD (Authorized Dealer) code
• Shipping bill number and date
• Invoice value (in foreign currency and INR)
• Amount realised and date of payment
• Purpose code for the remittance
Since it is auto-generated by banks and uploaded to DGFT, exporters don’t need to fill it manually.
Documents Required for a Bank Realisation Certificate
To apply for a BRC, you will need:
• Importer Exporter Code (IEC)
• Shipping bills / SOFTEX forms
• Foreign Inward Remittance Advice (FIRA)
• Bank details – Account in which the foreign payment was credited
• Business details – Registered name and address of your company
Is a BRC Mandatory for All Exports?
No, you don’t need a BRC for every export. Whether it’s required depends on what you’re exporting and how the payment is documented.
You need a BRC if:
• You export physical goods, because every shipment is linked to a shipping bill filed with Customs.
• You export software or IT-enabled services, where you must submit SOFTEX forms to the authorities.
You don’t need a BRC if:
• You’re a freelancer or service provider who doesn’t generate shipping bills or SOFTEX forms.
• In these cases, your bank’s Foreign Inward Remittance Advice (FIRA) is enough to prove that you’ve received payment from your overseas client.
Why Has RBI Made BRC Mandatory For Most Exporters?
The government uses BRC to ensure that foreign currency earned from exports is brought back into India.
The RBI and DGFT use a BRC to match what exporters ship (via shipping bills or SOFTEX forms) with what they get paid (via banks).
Without a BRC, exporters could underreport earnings and keep money abroad, which hurts the country’s foreign exchange reserves.
Example: Let’s say an exporter ships goods worth $50,000, but only brings $30,000 into India, keeping the balance $20,000 in a foreign bank.
Without a BRC check, this would look like a legal export, but the country actually loses $20,000 in forex inflow. Multiply that across thousands of exporters, and India could lose billions in unrecorded foreign exchange, weakening the rupee and forcing the government to borrow more for essential imports.
This law protects India’s economy because:
• It maintains accurate forex reserves (needed for imports, debt repayments, and currency stability).
• It prevents capital flight (money being parked abroad illegally).
• It ensures fair trade reporting, so benefits and incentives are based on actual earnings, not inflated or underreported numbers.
Why Do Exporters Need A BRC?
First of all, exporters need a BRC since it is mandatory for compliance. Secondly, the government gives exporters incentives like RoDTEP, RoSCTL, and SEIS. Incentives encourage exports for SMBs.
To receive these incentives, exporters have to submit a BRC. The government has made BRC mandatory for incentives, which makes exporters more inclined to report a payment with incentives.
How To Apply for Incentives Using A BRC?
When you submit a Bank Realisation Certificate (BRC), you can apply for multiple government-backed incentive schemes including:
• RoDTEP – Refunds hidden taxes (fuel, electricity duty, mandi tax) to reduce export costs.
• RoSCTL – Rebates state and central levies for textiles/apparel, boosting competitiveness.
• SEIS – Rewards service exporters (IT, consulting, healthcare, hotels) with duty credit scrips usable for customs or resale.
Here’s how you can use your BRC to claim incentives:
- Submit shipping bills via ICEGATE (Indian Customs EDI Gateway).
- ICEGATE automatically shares the data with DGFT.
- Ensure your e-BRC is correctly linked to the corresponding shipping bills.
- DGFT calculates your FOB value or net realisation value (whichever is lower).
Incentives are always based on the lower of the two values. - Based on this, duty credit scrips are issued under MEIS/SEIS.
These scrips can be used to pay customs duties or sold in the open market.
e-BRC 2024–25 Updates: Faster, Self-Certified, and Transparent
The e-BRC system has been enhanced for quicker validation and lower costs. Exporters can now self-certify e-BRCs using Inward Remittance Messages (IRM) provided by banks. With your 10-digit IEC code, you can match IRMs with shipping bills or invoices and generate e-BRCs immediately.
New features in 2024–25:
- IRM/ORM Repository: Track inward and outward remittances linked to your PAN.
- Self-Certified e-BRCs: Generate e-BRCs for one or multiple remittances instantly.
- Manage e-BRCs: View, search, or cancel unutilized self-certified e-BRCs.
- IRM Utilization Report: Download reports linking remittances to invoices and e-BRCs.
Note: For services exports, include the mandatory ‘Mode of Export of Services’ field while generating e-BRCs.
FAQs:
When is an e-BRC issued and how to access it?
After receiving payment from your overseas buyer, you need a Foreign Inward Remittance Advice (FIRA), which lists all export-related receipts. Submit this to your bank along with export documents like the shipping bill or SOFTEX form.
The bank verifies the payment, matches it with your shipment, and generates the e-BRC digitally. Once uploaded to the DGFT portal and acknowledged, you can instantly view, download, or print your e-BRC. The entire procedure is fully digital, eliminating paperwork and delays.
What’s the difference between FIRA and BRC?
• FIRA: Proof that foreign money has reached your bank account.
• BRC: Proof that the money is linked to a specific export invoice or shipping bill (mandatory for incentives & compliance).
Can freelancers use e-BRC?
Yes, but only if they file SOFTEX forms with STPI for IT/ITES exports. Otherwise, the FIRA from the bank is enough to show foreign income.
What happens if I don’t submit e-BRC?
Your export remains “open” in the EDPMS system, which can lead to compliance notices, difficulty claiming incentives, or even penalties for non-realization.
