Export payments can be complex, but one document makes all the difference in proving you’ve been paid and accessing valuable government benefits. Whether you’re a seasoned exporter or just starting your international business journey, understanding the Bank Realisation Certificate (BRC) is crucial for smooth operations and maximum profitability.
Introduction
For exporters in India, getting paid is just the beginning – proving you’ve been paid is equally important. The BRC serves as your official documentation that foreign payments have been received, bridging the gap between successful export transactions and accessing government benefits.
With the shift to e-BRC, this process has become fully digital, allowing banks to automatically coordinate with the Directorate General of Foreign Trade (DGFT) for seamless processing of export incentives. Understanding how this system works is essential for maximizing your export business potential.
What is a Bank Realisation Certificate (BRC)?
A Bank Realisation Certificate is an official document issued by your bank that confirms you’ve received payment in foreign currency for your exports.
Think of it as proof that your international buyer has paid you, and the funds have reached your Indian bank account.
What Does It Contain?
The BRC includes important details such as:
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Exporter’s name and bank details
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Invoice and payment information
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Foreign buyer’s details
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Amount received (converted to INR)
How is It Issued?
The process follows a few steps:
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You report the export transaction value to your bank.
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The bank logs it in the EDPMS (Export Data Processing and Monitoring System).
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Once payment is received and you submit shipping documents, the bank closes the entry in EDPMS.
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Then, your BRC is generated and issued.
Why Is It Important?
The BRC is more than just proof of payment. It helps you:
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Claim DGFT export incentives (like MEIS and SEIS)
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Apply for GST refunds and other benefits
e-BRC: Making It Digital
With the introduction of e-BRC, the entire process has gone digital:
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No need to visit banks or DGFT offices
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Faster, paperless certificate issuance
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Simplified compliance for exporters across India
Difference Between BRC and e-BRC
The shift from traditional BRC to e-BRC in 2012 marked a significant transformation in how export documentation works in India. Before this change, the entire process was manual and incredibly time-consuming.
Exporters had to physically visit their banks to collect paper BRC certificates, then personally submit these documents to the nearest DGFT regional office to claim their export benefits. This old system often meant multiple trips and lengthy waiting periods.
Today’s e-BRC system operates entirely through digital channels, making life much easier for exporters. Instead of issuing physical certificates, banks now generate electronic BRCs and automatically upload them directly to the DGFT server through secure banking channels. Once DGFT verifies all the details, you can simply download your e-BRC online.
This automated submission process has eliminated the need for manual paperwork and personal visits, saving exporters valuable time and effort while ensuring faster processing of export incentives.
Why is BRC Important in Export?
1. Proof of Payment Realisation
The BRC (Bank Realisation Certificate) confirms that you’ve received payment from your overseas buyers. It serves as official proof that your export transaction has been completed financially.
2. Mandatory for Export Compliance
If you’re exporting goods or software using shipping bills or SOFTEX forms, BRC is legally required. Without it, your exports won’t qualify for many government benefits.
3. Access to Export Incentives
You need a BRC to claim key export-related benefits such as:
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Duty Drawback
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Advance Authorization
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Export Promotion Capital Goods (EPCG) Scheme
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GST Refunds on exports
4. Claim MEIS & SEIS Benefits
BRC is essential for claiming incentives under:
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MEIS (Merchandise Exports from India Scheme)
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SEIS (Service Exports from India Scheme)
These schemes offer duty credit scrips worth 2–5% of your export value, which help reduce customs and other costs.
5. Ensures Foreign Exchange Transparency
BRC helps regulators and financial institutions monitor foreign currency inflows, ensuring transparency and legal compliance in international trade.
Step-by-Step: How to Get an e-BRC Certificate
Process for Exporters
Getting your e-BRC certificate is a streamlined digital process that involves three main parties: you as the exporter, your Authorized Dealer (AD) Bank, and the DGFT portal. The process begins once you receive payment from your overseas buyer and need to establish proof of this transaction. You’ll have a six-month window from receiving the payment to complete this process, so it’s important to act promptly to avoid any penalties or complications.
The first step involves submitting your shipping bills and invoice details to your AD Bank along with confirmation of the foreign payment received. Your bank then verifies all the submitted documents and uploads the necessary information directly to the DGFT portal through their secure banking channels. Once the bank completes the verification and upload process, the DGFT system automatically generates and issues your e-BRC, which gets linked to your specific shipping bill for easy tracking and reference.
Documents Required
To obtain your e-BRC certificate, you’ll need to prepare several essential documents. These include your business name and address proof to establish your identity as the exporter, and your IEC (Importer Exporter Code) which is your unique registration number for international trade. You’ll also need the shipping bill for your export transaction, which serves as the customs clearance document, and your bank account details where you received the foreign payment. Having these documents ready beforehand will help expedite the entire e-BRC application process.
Understanding the BRC Format
The BRC format follows a standardized structure that contains all essential information about your export transaction and payment receipt. Understanding this BRC certificate format helps exporters ensure they have all the correct details and can easily locate specific information when needed for various compliance or claim purposes.
Key Fields in the BRC Format:
- IEC (Importer Exporter Code): Your unique 10-digit alphanumeric code that identifies your business for international trade transactions
- Bank Reference Number: A unique identifier assigned by your bank to track the specific foreign exchange transaction
- Currency: The foreign currency in which you received the payment from your international buyer
- Amount Realised: The exact amount of foreign currency received, along with its equivalent value in Indian Rupees
- Invoice Number: The reference number of your commercial invoice sent to the foreign buyer
- Shipping Bill: The customs document number that was used for export clearance of your goods
The BRC certificate includes details such as the exporter’s name, the invoice number, the amount received, the date of receipt, and the foreign currency in which the payment was made. Each field serves a specific purpose in establishing the authenticity and traceability of your export transaction, making it easier for authorities to verify your export earnings and process any related benefits or incentives.
Common Errors and Delays in BRC Issuance
Even with the streamlined e-BRC system, several common issues can cause frustrating delays in certificate generation. Understanding these problems and their solutions can help you avoid unnecessary wait times and ensure smooth processing of your export documentation.
- Discrepancy in Exporter Details: When your name, IEC code, or bank details registered with DGFT don’t exactly match your bank records, the system rejects the application. Ensure your IEC details on the DGFT portal precisely match those in your bank records and immediately update any discrepancies while informing your bank with proof of the update.
- Incorrect Shipping Bill Details: If the shipping bill information you provide to your bank doesn’t align with what’s in the DGFT system, the e-BRC cannot be generated. Double-check that your shipping bill details match exactly with what’s filed through ICEGATE, and ask your bank to correct and resubmit their records if needed.
- Bank Processing Delays: Banks may face internal processing delays or technical issues that slow down e-BRC generation. Follow up regularly with your bank’s trade or forex department, and if delays persist, escalate to senior management or contact the DGFT Helpdesk directly.
- DGFT Portal Update Issues: Sometimes, payment realization isn’t updated in the DGFT e-BRC system despite bank confirmation. Inform your bank immediately and ensure they’ve correctly uploaded payment details to the DGFT portal, requesting a re-upload if connectivity issues persist.
- Duplicate or Missing e-BRC Records: Duplicate e-BRCs or missing records can occur in the DGFT database. For duplicates, ask your bank to cancel the extra entry by marking it as ‘Cancelled’. For missing records, verify the upload status with your bank and request a re-upload if necessary.
- Payment Detail Mismatches: Incorrect transaction IDs, wrong foreign exchange conversion values, or unreconciled bank fee deductions can cause e-BRC rejection. Carefully verify all payment details, including amount, currency, and transaction IDs, before submission to your bank.
Razorpay’s Export Payment Stack: Automate e-BRC with Ease
Managing export payments and e-BRC compliance can be complex, but Razorpay’s Export Payment Stack is designed to simplify this entire process for modern exporters. The platform offers a comprehensive solution that handles everything from payment acceptance to compliance reporting, making your export operations more efficient and error-free.
Razorpay’s Solution for Exporters includes the ability to accept international payments in over 100 currencies, giving you the flexibility to work with buyers worldwide without currency limitations. The system automatically generates transaction reports that are perfectly aligned with DGFT filing requirements, eliminating the manual work of formatting data for compliance. Additionally, smart reconciliation features and seamless data export capabilities ensure that all your payment information is organized and ready for e-BRC submissions.
Compliance-Ready Reports for e-BRC Filing mean you no longer have to worry about formatting issues or missing information that could delay your certificate generation. The platform ensures all transaction data meets the exact requirements needed for smooth e-BRC processing, reducing the chances of rejections or delays due to data discrepancies.
FAQs
What is a BRC certificate?
A BRC (Bank Realisation Certificate) is an official document issued by your bank that confirms you’ve received foreign currency payment for your exports. It serves as proof of export payment realisation and contains details like exporter information, payment amount, currency, and transaction specifics.
Is e-BRC mandatory in India?
Yes, e-BRC is mandatory for exporters dealing with goods and software products involving shipping bills or SOFTEX forms. It’s required for claiming export benefits like duty drawback, advance authorization, EPCG schemes, and GST refunds.
How is BRC linked to DGFT?
Banks automatically upload e-BRC data to the DGFT server after verifying export transactions. DGFT uses this information to process export incentives and benefits, making BRC essential for claiming schemes like MEIS and SEIS.
What documents are needed to generate a BRC?
You need business name and address proof, IEC (Importer Exporter Code), shipping bill for export transactions, and bank account details where you receive the foreign payment. These documents help banks verify and process your e-BRC application.
Can Razorpay help in automating e-BRC compliance?
Yes, Razorpay’s Export Payment Stack automates e-BRC compliance by generating DGFT-aligned transaction reports, accepting payments in 100+ currencies, and providing smart reconciliation features. This reduces manual work and ensures compliance-ready documentation for e-BRC filing.
