The Directorate General of Foreign Trade (DGFT) on August 12, 2026, invited comments on the Draft SOP for reporting Inward Remittance Messages (IRMs) relating to NBFC Factors.
The following has been stated:
• The proposed SOP aims to streamline reconciliation of export remittances and facilitate self-generation of Electronic Bank Realisation Certificates (eBRCs) through the DGFT portal. Under the proposed process, NBFC Factors remitting factoring proceeds in foreign currency to AD-I Banks will use the specified SWIFT message “AD-AD(P0092) EXP FACTORING PROCEED”, so that AD-I Banks do not create duplicate IRMs. Where export bills are discounted, and proceeds are released in INR, exporters should approach the NBFC Factor for creation of the relevant IRM.
• The enhanced DGFT system will allow exporters to view IRMs relating to NBFC Factors and self-certify eBRCs by matching remittance details with the relevant invoice or Shipping Bill. The SOP also requires AD-III factoring entities to identify factoring-related transactions correctly. The Trade Notice further refers to the Foreign Exchange Management (Authorised Persons) Regulations, 2026, under which AD Category-II entities may undertake foreign trade transactions up to ₹25 lakh per transaction. Stakeholders shall submit comments through [email protected], with the prescribed subject line by September 11, 2026.
[Trade Notice No. 20/2026-27]
