What is EDPMS (Export Data Processing &amp; Monitoring System)?

The Export Data Processing &amp; Monitoring System (EDPMS) is RBI’s centralized portal for all export transactions. Launched in 2014, EDPMS replaced paperwork with an online workflow. 

It tracks each shipment’s lifecycle – from the shipping bill to receipt of payment in one place. This means exporters spend less time on forms and bank visits. In fact, the RBI noted that EDPMS “eliminate[s] paper reporting” and significantly reduces banks' reporting". In practice, using EDPMS ensures your export is recorded end-to-end so you get faster clearances and secure payments.

Most importantly for Indian exporters, EDPMS is mandated for physical goods and software exports. It ensures exports comply with FEMA regulations. Once your shipping documents (invoice, bill of lading, etc.) are filed, your bank enters the details into the EDPMS portal. When the payment arrives, the bank updates EDPMS with the <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">Foreign Inward Remittance Advice (FIRA).</a> Your export is then closed on EDPMS, and you receive the <a href="https://www.skydo.com/blog/what-is-e-brc">electronic Bank Realization Certificate (e-BRC)</a> to claim GST refunds or incentives

The Export Data Processing and Monitoring System (EDPMS) is an online platform introduced by the Reserve Bank of India (RBI) in 2024 to enhance the efficiency of monitoring export transactions in India.&nbsp;

Launched on <a href="https://www.moneycontrol.com/news/business/press-release/launchexport-data-processingmonitoring-system-(edpms)-1110959.html">March 1, 2014</a>, The Export Data Processing and Monitoring System (EDPMS) is a central system that:

Why EDPMS Matters:&nbsp; Key Benefits for Exporters

All physical goods and software exporters covered under SOFTEX from India must use EDPMS. This includes MSMEs, Amazon Global Sellers, ecommerce exporters, and other new-age exporters shipping abroad.

Freelancers providing services generally do not use EDPMS, since they don’t file shipping bills. If you export goods or software, ensure every consignment and remittance is reported in EDPMS to avoid issues

EDPMS clearance is a must for exporters in India. If exporters fail to comply with the EDPMS requirements, their banks may place them on a caution list (more on this later). This listing can have severe implications, including increased scrutiny from regulatory bodies and potential disruptions to their export activities.

Note that if you are a freelancer offering services to international clients, you don’t need to worry about EDPMS status. The majority of freelancing services don’t fall under the traditional definition of export. If you don’t use SOFTEX forms, you don’t need to register your transactions in EDPMS.

　EDPMS status can be viewed on ICEGATE (select Public Enquiries &gt; RBI-SB-EDPMS Enquiry and enter your shipping bill number and date)

Faster closure for small-value entries (Oct 2025)

For entries up to ₹10 lakh per shipping bill, banks can reconcile/close EDPMS based on exporter declaration, accept invoice value reductions on the same declaration, and even take quarterly consolidated declarations. Banks also need to review charges and avoid penal charges for regulatory delays.

The EDPMS Caution List is RBI’s way of flagging exporters who have pending export payments or compliance issues.

If an exporter doesn’t receive payment for a shipment or fails to close their shipping bill on time in EDPMS, they risk being added to this list. As per FEMA guidelines, all export shipping bills must be closed within 9 months of shipment.

What happens if you’re on the caution list?

Not anymore.
Earlier (as per <a href="https://leatherindia.org/edpms-rbi-circular-no-04-dated-15-9-7/#:~:text=The%20exporters%20would%20be%20caution,for%20reckoning%20the%20realization%20period.">RBI’s 2016 circular</a>), exporters were automatically added to the caution list if a shipping bill wasn’t closed within 2 years. This caused genuine exporters to be penalised due to delays beyond their control (like importer fraud or disputes).

But in <a href="https://chemexcil.in/circulars/rbi:--export-data-processing-and-monitoring-system--edpms--module-for-%E2%80%98caution-de-caution-listing-of-exporters%E2%80%99---review/5040/6ddbc6ce36133c878b8563579df3d81f.html#:~:text=ALL%20THE%20MEMBERS%20OF%20THE,process%20exporter%2Dfriendly%20and%20equitable.">October 2020, RBI updated the system</a>. Now, AD Category-I banks (your authorised dealer banks) have the discretion to manually add exporters to the caution list if they suspect something unusual.

✅ Tip: Always follow up on payments and coordinate with your bank to close shipping bills on EDPMS in time. It helps avoid delays and keeps your record clean.

EDPMS vs. IDPMS:&nbsp; What’s the Difference?

While both EDPMS and IDPMS (Import Data Processing and Monitoring System) are essential tools for monitoring trade activities in India, EDPMS is specifically designed for managing export transactions, ensuring exporters' compliance, and facilitating the tracking of export-related financial data.&nbsp;

In contrast, IDPMS focuses on import transactions, ensuring all necessary documentation is in place for goods entering the country.&nbsp;

To summarise, EDPMS focuses on exports, and IDPMS focuses on imports. The detailed differences between EDPMS and IDPMS are as follows:&nbsp;

Role of Skydo in Streamlining Compliance&nbsp;

Skydo streamlines compliance for Indian exporters and freelancers engaged in international trade. It automates critical processes such as <a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance">FIRA generation</a>, purpose code management, and KYC procedures, simplifying regulatory compliance.&nbsp;

Skydo's real-time tracking and reporting features ensure transparency. Skydo also facilitates GST compliance, making it easier for exporters to claim refunds.&nbsp;

With its centralised approach, Skydo significantly reduces the administrative burden associated with international payments.&nbsp;

<a href="https://dashboard.skydo.com/login?">Get started!</a>

large_EDPMS full form

medium_EDPMS full form

small_EDPMS full form

thumbnail_EDPMS full form

EDPMS full form

For exporters, eBRC (Electronic Bank Realization Certificate) is a key compliance document that serves as proof of payment received from abroad for exported goods or services. It is especially important for goods and software exporters covered under SOFTEX.

In this blog, we’ll break down what eBRC is, why it matters, how to obtain it, and everything else you need to know.

An eBRC (Electronic Bank Realization Certificate) is digital proof that your bank issues once you receive payment for an export. Simply put, it confirms that you’ve been paid for your goods or services.

This certificate is important because it helps you report your earnings, file taxes easily, and even access government benefits meant for exporters including low-cost loans, subsidies, duty exemptions and more.&nbsp;Since eBRC includes all the transaction details, it also makes compliance with authorities like the Income Tax Department smooth and hassle-free.

Before eBRC, getting a <a href="https://www.skydo.com/blog/bank-realisation-certificate-all-you-need-to-know">Bank Realization Certificate (BRC)</a> was a tedious process. Exporters had to visit their bank, apply for a physical BRC, and then submit it to the Directorate General of Foreign Trade (DGFT). The DGFT would manually enter transaction details, making the process slow and complicated—especially for claiming export incentives.

In 2012, the DGFT introduced e`BRC, eliminating the need for physical visits and paperwork. Now, banks issue BRCs digitally, making it faster, easier, and more efficient for exporters to claim benefits and comply with regulations.

In India, banks issue an -BRC to exporters through the following process.

How do you check the eBRC status on the DGFT Website?

Here are the steps to check the status of your eBRC (Electronic Bank Realization Certificate) online.

DGFT has made it mandatory for all exporters to apply for and receive the eBRC to demonstrate that they have received payment for their exported goods or services per DGFT regulations.

The eBRC system provides a digital record of export transactions, making it easier for exporters to maintain and retrieve records for audit and compliance.  Additionally, exporters can avoid visiting the bank and DGFT offices.&nbsp;

One of the main reasons exporters apply for the eBRC is to reap the benefits of various export benefits offered by the Indian government under its Foreign Trade Policy. Submitting an eBRC allows the exporters to be eligible for benefits such as low-cost loans, duty exemptions, subsidies, etc.&nbsp;

Enhancing transparency and accountability

The Indian government and authorities such as the Income Tax Department and the DGFT constantly monitor and manage the country's foreign exchange reserves and tax filing. Issuing e-BRC ensures that the foreign exchange earned through exports is accurately reported and accounted for with effective tax filing.&nbsp;

Is eBRC required for freelancers receiving foreign payments?

No, eBRC is not mandatory for most freelancers receiving foreign payments.

The eBRC (Electronic Bank Realisation Certificate) is primarily required for exporters of goods and software services that fall under the purview of the DGFT or are covered under SOFTEX regulations. It is used to claim export incentives like RoDTEP or SEIS, and to comply with certain regulatory filings.

However, if you're a freelancer offering services like marketing, design, consulting, writing, or other non-software services, and you're not registered under DGFT or filing for export schemes, you typically do not need an eBRC.

✅ What you’ll usually need instead:
For most freelancers, a <a href="https://www.skydo.com/blog/importance-of-fira-for-freelancers">FIRA (Foreign Inward Remittance Advice) </a>is sufficient. It serves as a bank-issued proof of receiving foreign currency into your Indian account and is often used for accounting, tax filings, and general documentation.

💡 With Skydo, you get FIRA automatically for every payment, and eBRCs where applicable—so you never have to chase your bank for either.

How to Claim Export Incentives using eBRC

In India, the DGFT decides on the value of the incentives which an exporter can seek under the various export benefits. The value is decided by analysing the Free on Board (FOB) of the exported goods and services mentioned in the shipping bills, and the total received payments per the eBRC.&nbsp;

Here's how you can claim these benefits with eBRC:

However, you must ensure that the bank has submitted an error-free e-BRC and it reflects the consolidated realisation value. Furthermore, you must enter freight values, insurance and commission values in the refund application, as the e-BRC excludes such values.&nbsp;

Here are some key resources and tools that can help you in your endeavour to obtain your e-BRC.

eBRC is a crucial certificate issued by the bank and verified by the DGFT for streamlining the payment procedure for exporters and working as an income proof for better transparency and tax filing.&nbsp;

It is mandatory for an exporter receiving payments for the export of goods and services to apply for eBRC and ensure that the bank uploads it on the DGFT website. Utilising the eBRC, exports can present their eligibility for various export incentives and increase their profit margin.&nbsp;

However, as an exporter, you must maintain accurate records of your export transactions and related documents to facilitate the e-BRC application process. Since the regulations and the procedure may change over time, it's important to stay updated with the latest information from official government sources and industry associations.&nbsp;

You can contact <a href="mailto:support@skydo.com">industry experts at Skydo</a> to help you with the eBRC process and in case you have any other queries related to foreign exchange.&nbsp;

What is e-BRC_ How can you obtain it, and why do you need it th

large_What is e-BRC_ How can you obtain it, and why do you need it.jpg

medium_What is e-BRC_ How can you obtain it, and why do you need it.jpg

small_What is e-BRC_ How can you obtain it, and why do you need it.jpg

thumbnail_What is e-BRC_ How can you obtain it, and why do you need it.jpg

International trade can be complex, and so can the codes on your bank statements.  Seeing 'P0108' might leave you scratching your head.  This guide clarifies this purpose code, focusing on its connection to merchanting trade and why it's important for your business.

P0108 Purpose Code Explained: The Essence of Merchanting

&nbsp;P0108 purpose code specifically refers to transactions related to goods sold under merchanting or receipts against the export leg of merchanting trade.  Let's break down what "merchanting" means in this context:

Merchanting trade involves a trader buying goods from a seller located in one country and selling them to a buyer in another country without the goods physically entering the trader's country.  Think of it as a triangular trade where the trader facilitates the transaction but the goods move directly from the original seller to the final buyer.

P0108 captures the financial aspect of this trade, specifically the receipt of funds from the buyer after the goods have been sold.

Why is Understanding P0108 Purpose Code&nbsp; Important?

Key Considerations for P0108 Purpose Code:

How Do You Choose the Right Purpose Code for Your Transaction?

Selecting the correct purpose code is essential for ensuring your international trade transactions comply with RBI guidelines. For businesses engaged in merchanting trade, where goods are bought and sold internationally without physically entering India, Purpose Code P0108 should be used when receiving payments from the buyer for the export leg of the transaction.

Before finalizing your transaction, carefully confirm the nature of the trade and ensure that the purpose code accurately reflects the merchanting activity.  Remember, P0108 specifically relates to the receipt of funds from the buyer after the goods have been sold in a merchanting arrangement.  If the transaction involves other aspects of the trade (e.g., the initial purchase of goods), a different purpose code might be applicable.

To avoid delays, misreporting, or potential regulatory issues, ensure you have all the necessary documentation to support the use of Purpose Code P0108.  This typically includes:

If you're uncertain about which purpose code applies to your specific transaction, consult your bank or a financial advisor to confirm the correct code.  Using the wrong code can lead to processing delays, inquiries from regulatory authorities, and potentially even penalties.  Accurate coding ensures smooth and compliant international trade operations.

large_P0108_Purpose_Code_Guide

medium_P0108_Purpose_Code_Guide

small_P0108_Purpose_Code_Guide

thumbnail_P0108_Purpose_Code_Guide

P0108_Purpose_Code_Guide

Ever noticed a mysterious code like "P1502" on your bank statement and wondered what it signifies? These purpose codes, while seemingly cryptic, are essential for categorizing financial transactions, especially in international trade. Today, we'll unravel the meaning of&nbsp; P1502 Purpose Code, specifically related to non-import transactions.

P1502 Purpose Code Explained: Fixing Mistakes and Refund for Non-Imports

Purpose Code P1502 refers to transactions involving reversals of incorrect entries and refunds of amounts sent for non-import purposes.  Think of it as a correction code.  It comes into play when a payment was mistakenly sent abroad for something other than importing goods, and now needs to be rectified.

Why is Understanding Purpose code P1502 Important?

Understanding purpose codes like P1502 empowers you to manage your finances more effectively, especially when dealing with international transactions.  It helps you stay organized, understand your cash flow, and avoid unnecessary confusion.

large_P1502 Purpose_Code_Guide

medium_P1502 Purpose_Code_Guide

small_P1502 Purpose_Code_Guide

thumbnail_P1502 Purpose_Code_Guide

P1502 Purpose_Code_Guide

Accurately classifying international transactions is essential for staying compliant with RBI and FEMA regulations. The P1401 purpose code is specifically used when receiving payments from abroad for salaries, wages, bonuses, or other compensation for work. In this guide, we’ll break down the importance of Purpose Code P1401, its role in inward remittances, and how it ensures smooth compliance with RBI guidelines.&nbsp;

Purpose Code P1401 is used when receiving payments from abroad for compensation, such as salaries, wages, bonuses, or other forms of remuneration for work. For example, if you’re a remote employee working for a company in the US and receive salary or bonus payments directly from them, these transactions fall under P1401.

This code ensures that such remittances are accurately reported to the RBI as Compensation of Employees, keeping your transactions compliant with Indian regulations.

Using the correct purpose code, like P1401, not only ensures smooth reporting but also helps you avoid delays or complications during the remittance process. If you’re new to purpose codes, explore our guide to learn more about their role in simplifying cross-border transactions.

&nbsp;Importance of &nbsp;Purpose Code P1401 in Inward Remittance

Purpose code P1401 ensures that payments received from abroad as salaries, bonuses etc by employees are reported correctly under RBI guidelines. Proper classification helps avoid delays in the remittance process and ensures compliance with FEMA regulations. Note that this purpose code applies to employees of an organisation and not independent service providers. For example, if you are a freelance graphic designer providing services to a client in the US and receive payment for the same, it will not be categorised under purpose code P1401.&nbsp;

Using an incorrect purpose code can lead to delay or cancellation of the transaction altogether and it can also lead to serious legal trouble if it's found that the incorrect code was deliberately used to bypass compliance.&nbsp;

Instances Where Purpose Code P1401 Will be Required

Let's understand the applicability of Purpose Code P1401 with a couple if instances.&nbsp; Example 1: Imagine you’re a full-time employee working remotely for a company based in Sweden while living in India. The company pays your salary directly to your Indian bank account without involving any third party. This inward remittance, being your compensation as an employee, is categorized under Purpose Code P1401.

Example 2: Let’s say you’re an employee working in the Gulf region, but your salary is deposited directly into your bank account in India. In this case, the payment is categorized under Purpose Code P1401, as it represents compensation received from abroad by an employee.

How to Select the Right Purpose Code for Your Transaction?

Choosing the correct purpose code is crucial to ensure your inward remittance complies with RBI and FEMA guidelines. If you’re receiving payments from abroad as salary, wages, bonuses, or other forms of employee compensation, Purpose Code P1401 should be used.

Before finalizing your transaction, verify the nature of the payment to confirm it matches this purpose code. For example, if the payment is not for compensation but for services rendered or goods sold, a different purpose code may apply. Ensure all relevant documentation, such as employment contracts or proof of payment, is in place to avoid discrepancies or delays.

If you’re uncertain about the appropriate purpose code for your transaction, consult your bank or a financial expert. Using the wrong code could lead to processing delays or attract regulatory scrutiny.

large_P1401_Purpose_Code_Thumbnail

medium_P1401_Purpose_Code_Thumbnail

small_P1401_Purpose_Code_Thumbnail

thumbnail_P1401_Purpose_Code_Thumbnail

P1401_Purpose_Code_Thumbnail

If you’re an exporter or freelancer earning from abroad, you’ll need an FIRC certificate to stay compliant and claim benefits. But let’s be honest—getting one through traditional banks can be a tedious process, often requiring multiple follow-ups and fees.

The good news? You can now get your FIRC certificate online, quickly and hassle-free. In this blog, we’ll walk you through the easiest way to obtain it without the usual headaches.

FIRC certificate, or its full form <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide" target="_blank">Foreign Inward Remittance Certificate</a>, is an important document issued by banks to exporters as proof of receiving foreign currency payments. Prior to 2016, AD Category I Banks were authorized to issue FIRCs to exporters for every cross-border payment received. FIRC certificate was crucial for exporters to serve as proof of foreign transfers. It was also a crucial document for both goods and service exporters to claim their tax exemption and GST refund.

However, as per RBI guidelines since 2016, banks only issue FIRCs for specific financial transactions like inward remittances from Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII). For export collections, banks now provide a<a href="https://www.skydo.com/blog/importance-of-fira-for-freelancers"> Foreign Inward Remittance Advice (FIRA) instead.</a>

Although FIRA is often still referred to as FIRC, the two serve slightly different purposes. The key difference is that FIRCs are now limited to transactions related to foreign investment, meaning FDI and FII transactions, while FIRA is what exporters need for all other international payments.&nbsp; For clarity, we'll use the term FIRC certificate moving forward, but it refers to FIRA throughout.

To obtain a Foreign Inward Remittance Certificate (FIRC) from your bank, you need to submit a formal request with the following details:

Some banks may ask for additional documents like the invoice, foreign client contract, or purpose declaration, depending on the transaction type.

✅ Pro Tip: With platforms like Skydo, there’s no need to request or wait for FIRA.&nbsp; Your FIRA (valid for export payments) is generated instantly and is fully compliant with RBI regulations.

FIRC Certificate Download: How to Do it Online?

Today, beyond traditional banks, several online platforms like Skydo, <a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">Wise</a>, and <a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees">Payoneer</a> provide exporters with fast and secure options for <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">receiving international payments in India.</a> Some of these platforms also offer FIRC Certificates to streamline compliance for exporters.

While some platforms may refer to these digital FIRAs as <a href="https://www.skydo.com/blog/efirc-firc-brc-essentials-differences" target="_blank">eFIRC,</a> electronic FIRC digital FIRC, or simply FIRC, it's important to understand that they are essentially digital FIRAs, regardless of the name. Now, let’s explore how you can receive your digital FIRA from these platforms:

How to get your PayPal FIRC Certificate ?

Since 2021, <a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives" target="_blank">PayPal</a> has started issuing digital FIRA to businesses receiving international payments in India as proof of payment receipt. The platform doesn’t issue individual FIRA for every transaction, instead, it issues <a href="https://www.paypal.com/in/brc/article/paypal-monthly-digital-firc?no_follow=true">monthly digital FIRA</a>, and all international transactions of the previous month are referenced in that one FIRC certificate. You can access this FIRC certificate by the 15th of the subsequent month. For example, your monthly FIRC certificate for July will be available to you by 15th of August.

Once the FIRC certificate is available, PayPal will notify you of the same via email. Here’s how you can download it:

Note that PayPal doesn't charge any additional fee for issuing FIRC certificate.&nbsp;

How to get your FIRC Certificate from Payoneer?

<a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees" target="_blank">Payoneer</a> is another widely used platform for Indian businesses to receive international payments. To simplify compliance, Payoneer provides users with free digital FIRC Certificates for all their international transfers.

Here’s how you can download your FIRC Certificate from Payoneer&nbsp;

<a href="https://www.skydo.com/blog/top_5_wise_alternatives_for_international_payment" target="_blank">Wise</a> is a leading platform for businesses and individuals to receive foreign payments, supporting both B2B and P2P transfers. For business payments in India, Wise provides a digital FIRA via email for each transaction.

However, Wise charges an additional fee for issuing the digital FIRC certificate, which varies depending on the currency. For instance, if you receive a payment in GBP, the fee is <a href="https://wise.com/in/pricing/business/receive?sourceAmount=1000&amp;sourceCcy=GBP&amp;targetCcy=INR?no_follow=true">1.91 GBP,</a> while for USD transactions, the fee is <a href="https://wise.com/in/pricing/business/receive?sourceAmount=1000&amp;sourceCcy=GBP&amp;targetCcy=INR?no_follow=true">2.50 USD</a>.&nbsp;

Get Your Free FIRC Certificate from Skydo instantly&nbsp;

At Skydo, our goal is to simplify the international payments process, allowing you to focus on growing your business. That’s why we provide digital FIRC Certificates for every transaction, completely free of charge.

When transacting through Skydo, it automatically generates FIRC certificate for all international payments when they reach your bank account. You will also be notified of the same via email. The document details will be according to the information mentioned in the invoices and payment receipt details. You can easily go to the Skydo dashboard and download FIRA receipts for all or specific transactions, at no extra cost! 

Here’s how you can download your FIRC Certificate from Skydo:

With Skydo, enjoy hassle free and compliant international payments, delivered promptly and without any hidden fees. Switch to Skydo and experience the difference.

large_How to get your FIRC certificate Online

medium_How to get your FIRC certificate Online

small_How to get your FIRC certificate Online

thumbnail_How to get your FIRC certificate Online

How to get your FIRC certificate Online

Working with international clients but getting lost in the maze of banking codes?&nbsp;

If you've ever been asked for your ABA number while setting up payment details, you're not alone. ABA stands for American Bankers Association, and these numbers are essential for receiving bill payments into your U.S. bank account or other financial institution. Think of it as your bank's unique address in the American banking system.

In this guide, we'll break down everything you need to know about ABA numbers – from what they are and where to find them to how they work in getting your hard-earned money safely into your account. 

An ABA or routing number is your bank's identification code in the United States. Every U.S. bank has at least one of these nine-digit numbers, which you've probably spotted at the bottom of your checks.

It is like a postal digit code for your bank – it helps other banks know exactly where to send money when someone's making a payment to your account number. You'll often see it referred to as a routing number, though some people still call it a check routing number since it's printed on paper checks.

Your bank might have several different ABA numbers, which can initially seem confusing. Here's why: Large banks often have multiple ABA numbers because they operate across different regions and handle various electronic transactions. Think of it like having different phone extensions for different departments in a company.

This is why it's important to always check with your bank about which ABA number to use for your specific transaction. Using the wrong one could delay your payment or cause rejection, especially for wire transfers.

This clarity around which number to use becomes especially important when setting up payment details with clients or employers, so it's worth double-checking with your bank about which number to use for different types of transactions.

Let's break down what those nine digits in your ABA number mean. While it might look like a random string of numbers, each digit serves a specific purpose in ensuring your money gets to the right place.

To make things easier, we will explain with an example.&nbsp;

When you look at ABA number 026009593, it's like a detailed address for your bank:

Let's look at another ABA number: 121000358

This organized structure helps route your money accurately through the U.S. banking system, ensuring it reaches the correct bank in the San Francisco region. Understanding these patterns can help verify whether you use the correct ABA number for your transactions.

Understanding this structure can be helpful when verifying your banking details with clients – you can quickly check if the number they're using matches your bank's region and follows this pattern.

Is the ABA code the same as the SWIFT Code?&nbsp;

If you're handling domestic and international transactions, you'll come across two types of bank codes: ABA numbers and SWIFT codes. While they might seem similar initially, they serve different purposes in getting your money where it needs to go.

ABA number is like your bank's domestic address – it's only used for transactions within the United States. It's a straightforward 9-digit number that tells other U.S. banks exactly where to send your money. You'll use this when setting up direct deposits or receiving electronic payments from U.S. clients.

<a href="https://www.skydo.com/swift-code-finder">SWIFT codes</a>, on the other hand, are your bank's international address. When clients from overseas want to send you money, they'll need your bank's <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT code</a>. These codes look slightly different – they use letters and numbers (like CHASUS33) and help banks worldwide identify each other for international transfers.

It's worth understanding both codes, especially when receiving international payments. As an Indian business or freelancer receiving payments from U.S. clients, you must share your bank's SWIFT code, not the ABA number. You're receiving an international wire transfer, and SWIFT codes are used for cross-border payments.

Remember: ABA numbers are only used for electronic transfers within the U.S. banking system. When receiving payments from U.S. clients using your Indian bank account number, always provide your bank's SWIFT code to ensure your payment arrives safely and efficiently .

📚Note: Using the wrong code might delay your payment or cause rejection, so always clarify with your client whether they're sending money domestically (ABA) or internationally (SWIFT).&nbsp;

What is the ABA Routing Number Policy of India?&nbsp;

As an Indian freelancer or business owner, you'll mainly work with two banking codes: IFSC codes for transfers within India, and SWIFT codes for receiving payments from U.S. clients. You won't need to worry about ABA numbers since they're only used for transfers within the U.S. banking system.

Like the U.S. banking system uses ABA numbers to route payments, Indian banks use IFSC codes. Think of it as India's equivalent of the ABA system – different code, same purpose.&nbsp;

When receiving money from India, you must work with IFSC codes instead of ABA numbers.

This is a good reminder that different countries have their unique banking codes and systems:

So, if you're doing business internationally, you'll want to familiarize yourself with the banking codes used in your clients' countries to ensure smooth payment processing.&nbsp;

Receive Payments From the US Easily with Skydo&nbsp;

For Indian businesses <a href="https://www.skydo.com/blog/how-to-receive-money-from-usa-to-india">receiving U.S. payments,</a> SWIFT codes are more relevant than ABA numbers. While traditional banks have complex processes for international transfers, modern payment platforms are simplifying these transactions.&nbsp;

Skydo, for instance, offers a streamlined approach for freelancers and small businesses, with features like zero FX margin and instant FIRA, making international payments more cost-effective and efficient.

<a href="https://www.skydo.com/">Explore Skydo</a>

large_What is ABA Number and How to find it

medium_What is ABA Number and How to find it

small_What is ABA Number and How to find it

thumbnail_What is ABA Number and How to find it

What is ABA Number and How to find it

Imagine landing your first international client for your handmade jewelry, only to have your shipment held up at customs because your IEC (Importer Exporter Code) status shows "pending verification." This scenario plays out frequently for Indian businesses and freelancers who overlook IEC verification (an initiative by the government of India), leading to costly delays, storage charges, and potentially lost clients. The good news? A simple online verification process can help you avoid these headaches and ensure smooth international shipping.&nbsp;

This guide will explain how to check your IEC status online, understand different verification statuses, and prepare your business for hassle-free international trade.

An IEC is your passport for international trade. The Directorate General of Foreign Trade (DGFT) gives this unique 10-digit number to businesses and freelancers who want to trade internationally.

You need to verify your IEC details because:

There are two simple ways to verify your IEC

Step 1: Open your web browser and go to the <a href="https://www.dgft.gov.in/CP/">DGFT</a> website

Step 2: Look for the Login button at the top of the page. Type in your username and password

Step 3: Find and click on Services in the menu. Now look for IEC Management and click on it

Step 4: Here, you need to put in your PAN details and click Submit to see your IEC status or download your IEC certificate

Step 1: Visit the <a href="https://www.icegate.gov.in/">ICEGATE website</a>

Step 2: Find and click User Login under Services.&nbsp;

Step 3: After logging in, look for Check IE Code/BIN Status. Type in your IEC number, complete the captcha, and click IE Code @ ICEGATE to see your status

What are the Different Statuses of IEC Code Verification?

When you check your IEC application status, you'll see one of these status messages:

It means your application is being processed. You need to wait for four days to get the next update. During this time, DGFT officers review your documents and verify your international business details. You can use this waiting period to set up other aspects of your export business, like preparing product catalogs or finalizing your pricing strategy.

It means something wasn't quite right about your application process, and it got rejected (for example, maybe your address proof wasn't clear enough in the application). The next step could be to fix the issues and apply again (no extra fees needed). The good news is that the system will highlight which documents or details need correction, making fixing it easier. Most rejections are resolved within one resubmission, so don't get discouraged if this happens to you.

It means the DGFT has approved your <a href="https://www.skydo.com/blog/iec-code-apply-online">IEC application</a> and sent it to customs. The next step is to wait three days for customs clearance. During this time, your information is being integrated into the customs database, allowing you to ship goods internationally. You can track this status daily on the ICEGATE portal to know exactly when your code becomes active.

Registered by DGFT and Accepted by ICEGATE

It means you're all set to start your import and export operations. This status confirms that DGFT and customs systems recognize your IEC as valid and active. You can now register with shipping companies, apply for export benefits, and start accepting international orders and gigs with confidence that your documentation is complete and valid.

What are the Benefits of IEC Code Verification?

Picture losing a ₹5 lakh international project because your IEC verification wasn't current—it happens more often than you'd think. Understanding the benefits of IEC verification isn't just about following rules; it's about protecting your business and unlocking opportunities that could take your export activities to the next level.

Growing Global

Staying Compliant blogs