Second AD Bank for Exports: Steps, Docs & Compliance

What Is an AD Bank for Exports?

An Authorised Dealer (AD) bank is a bank licensed by the Reserve Bank of India (RBI) to deal in foreign exchange. For exporters, it is the bank through which you route and report all inward foreign remittances from overseas buyers.

If you are starting an export business in India, the AD bank's role goes beyond receiving the payment. It reports the transaction in the Export Data Processing and Monitoring System (EDPMS), issues the Foreign Inward Remittance Certificate (FIRC), sends the inward remittance details to the DGFT portal so you can generate your eBRC, and makes sure the export proceeds are reported as required under FEMA 1999.

Here is how that looks in practice. A Bengaluru-based IT services firm invoices a US client for $5,000. The payment arrives in the firm's export account at its AD bank, which records the inward remittance in EDPMS, issues a FIRC, and pushes the remittance to DGFT, where the firm generates its eBRC confirming receipt of export proceeds.

Why Would an Exporter Need a Second AD Bank?

An exporter may need a second AD bank for four reasons: a new foreign client wires funds to a different bank, different business lines or geographies are banked separately, the existing AD bank may not offer competitive rates, settlement or trade finance, or the exporter wants to separate export proceeds by client, currency or contract.

Adding a second AD bank does not replace the first. Both can operate at the same time under the same Importer Exporter Code (IEC), and RBI permits this under FEMA 1999 export regulations.

A new client pays into a different bank: You may already have an established relationship with one AD bank, but a new foreign client wires funds to a different bank account. That second bank then needs to act as an AD bank for those transactions.

Separate business lines or geographies: Some exporters keep separate banking relationships, for example routing USD receipts through one bank and EUR receipts through another. Each bank must be registered as an AD bank for the transactions it handles.

Better rates, settlement or trade finance: Your existing AD bank may not offer competitive forex conversion rates, fast settlement timelines, or adequate trade finance support. That can prompt you to route new export receipts through a second bank that meets those needs better.

Clean segregation of proceeds: Exporters with multiple group entities or product lines may want to separate export proceeds by client, currency, or contract. A second AD bank allows that without closing the first relationship.

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How to Add a Second AD Bank for Exports

You add a second AD bank in six steps: choose an RBI-licensed AD Category-I bank, apply with your business details, provide the required documents, complete the bank's verification and compliance checks, finish AD code formalities if you export goods, and confirm EDPMS linkage.

If you export services, you do not need an AD code at customs. Your formalities with the AD bank stop at account activation and EDPMS linkage.

Here is an example. A Mumbai-based software services exporter wants to receive USD payments from a new US client through a second bank. They approach the new bank's trade desk and submit their IEC, PAN, GST registration, existing AD bank name, and recent export invoices. After KYC clearance, the account is activated. The exporter then shares the new bank's SWIFT details with the US client, and the first inward remittance is logged by the second bank directly in EDPMS under the same IEC.

Documents Required to Add a Second AD Bank

The documents required to add a second AD bank for export receipts typically include your IEC, PAN and business registration documents, KYC documents, GST registration certificate, existing AD bank details, recent export invoices or shipping bills, bank-specific FEMA declarations, and a board resolution if you are a company.

Treat this as a standard checklist to carry when you approach a new AD bank. The exact list varies by bank, and the bank's trade desk may ask for additional documents based on its internal policy.

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What Happens to Your Existing Export Transactions?

Your existing export transactions stay with your first AD bank. Shipping bills and transactions already linked to that bank remain there unless you formally request a transfer to the new bank, and payments still pending against invoices already declared through it should keep coming in through that bank. Once the second account is active, you can route new transactions through it.

The first bank keeps its responsibilities: It continues to handle EDPMS closure and FIRC issuance for all transactions routed through it. Changing the receiving bank mid-transaction for an already-declared shipping bill leaves the EDPMS entry open until both banks reconcile it, which complicates realization tracking.

Outstanding proceeds stay monitored: The first AD bank keeps monitoring outstanding export proceeds (payments not yet realized) in EDPMS until they are received and the entry is closed.

Two separate timelines: The EDF filing deadline and the payment realization period are separate. Filing on time does not mean the payment has been received.

Realization period: Under the amended FEMA export framework (effective 1 October 2026), export proceeds must generally be realized and repatriated to India within 9 months from the date of shipment (for goods) or from the date of invoice (for services). For exports invoiced or settled in INR, the applicable period is 12 months. These timelines apply regardless of which AD bank the payment is routed through.

New transactions: You can route new transactions through the second AD bank from the date the account is active. The second bank logs these fresh inward remittances in EDPMS under the same IEC, independently of the first bank's entries.

The Export Declaration Form (EDF): The Export Declaration Form (EDF) is the mandatory declaration used to report the full value and key details of an export under FEMA. For goods exported through an EDI port, the EDF is deemed submitted as part of the shipping bill. The AD bank named in the shipping bill or EDF is responsible for monitoring that transaction's realization in EDPMS.

How to Manage Export Transactions With Two AD Banks

To manage export transactions with two AD banks, give each bank a defined role, remember that each bank issues FIRCs only for payments received through its own accounts, keep a separate internal log, tell each foreign buyer which bank details to use, and keep both banks updated on changes to your IEC, address or signatories.

Assign each bank a defined role: For example, one bank handles all USD receipts from North American clients, and the second handles EUR receipts from European clients. This makes EDPMS tracking, FIRC matching, and eBRC generation cleaner and less error-prone.

Expect separate FIRCs, one eBRC portal: Each AD bank issues its own FIRC only for payments received through its own accounts. If a payment from client A lands in Bank 1, Bank 1 issues the FIRC for that transaction. Both banks report their inward remittances to the DGFT portal under your IEC, so you generate eBRCs for payments from either bank in one place.

Keep a separate internal log: Record the invoice number, client name, bank routed through, amount, date received, and EDPMS entry status. Without this, reconciling which payments have been realized and which entries are still open in EDPMS becomes difficult at audit or eBRC generation time.

Tell each buyer which bank to use: Inform each foreign buyer explicitly which bank account and SWIFT details to use for each invoice. A buyer who sends a payment to the wrong bank causes an EDPMS entry mismatch. The shipping bill is linked to one bank, but the payment arrives at another, which requires manual intervention and can trigger a compliance follow-up.

Update both banks on changes: Both AD banks must be kept updated when there are changes to your IEC, business address, or authorized signatories. Exporters often manage this at the primary bank and overlook it at the second.

If splitting FIRC and EDPMS responsibilities across two banks sounds like more coordination than you want, Skydo offers another way to receive international payments with clean, trackable records. It provides free virtual accounts in USD, EUR, GBP, SGD, AUD, and CAD, so you can receive from buyers paying in different currencies through one platform without needing two AD banks to cover different currencies.

Every transaction comes with a free FIRA certificate, and settlements reach your Indian bank account within 1 working day. Skydo also offers eBRC closure assistance: you link your DGFT account once and bulk upload shipping bills to auto-map IRMs and generate eBRC in a click, which removes the manual follow-up with multiple bank relationship managers.

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Can You Change Your AD Bank Instead of Adding a Second One?

Changing your AD bank means moving all your export banking, including EDPMS responsibilities, pending realization tracking, and future FIRC issuance, from one bank to another. Adding a second AD bank means both banks coexist, each handling the transactions routed through it.

Switching makes more sense when your existing AD bank consistently underperforms on rates, service, or settlement speed and you do not want to manage two banking relationships going forward. Adding a second bank makes more sense when you want to keep the first relationship for existing clients while routing new clients or currencies through a different bank.

Existing transactions stay tied to the first bank: Shipping bills declared, invoices raised, and EDPMS entries already logged are tied to the first AD bank. That bank must still close those entries even after you stop routing new transactions through it, so you may still need to deal with it until every outstanding entry is realized and closed.

Pending payments should not be redirected on their own: Pending export payments against invoices already in EDPMS under the first bank should still arrive through that bank. If you want them to land at the new bank, first ask both banks to transfer those shipping bills in EDPMS. Redirecting buyers without that step leaves entries open and needs manual reconciliation.

Both banks run in parallel for a period: During a switch, the new bank handles all fresh transactions while the old bank winds down open entries. This overlap is operationally similar to running two AD banks, which is why many exporters choose to simply add a second bank rather than attempt a full switch.

Service fees continue at both banks: Banks charge service fees for handling inward remittances, issuing FIRCs, processing export declarations, and closing EDPMS entries. These continue to apply at both banks during any transition period.

Compliance Requirements for Using a Second AD Bank

RBI does not prohibit using two AD banks under the same IEC. The compliance obligation sits with you: every inward remittance must be reported in EDPMS, each payment should reach the bank linked to its shipping bill or invoice declaration, and export proceeds must be realized within 9 months from the date of shipment (goods) or invoice date (services), or 12 months if invoiced or settled in INR.

EDPMS reporting for both banks: Every inward foreign remittance received through either AD bank must be reported in EDPMS. Each bank logs only the transactions routed through its own accounts. Your IEC ties both sets of records together, but RBI sees them as separate entries under that IEC.

Realization period: The 9-month period applies under the amended FEMA framework effective 1 October 2026. The deadline applies per transaction, regardless of which AD bank receives the payment.

Right payment, right bank: You are responsible for making sure each payment reaches the correct AD bank, meaning the one linked to the specific shipping bill or invoice declaration. A payment arriving at the wrong bank does not automatically close the entry logged at the other bank. It needs a FIRC from the receiving bank and approval from the declaring bank, or a transfer of the shipping bill, before the entry can be closed.

FIRCs are bank-specific, eBRCs are yours to generate: Each bank issues FIRCs only for remittances it receives. You generate eBRCs on the DGFT portal by matching inward remittances reported by either bank against your shipping bills or invoices, transaction by transaction.

Records at both banks and on your side: Both AD banks must maintain their own FEMA-compliant records for the transactions they handle. You must keep matching internal records covering invoice, remittance received, bank, amount, date, and EDPMS status, to support any RBI or tax authority review.

AD code must match the bank (goods exporters): If you use two AD banks, the AD code quoted on each shipping bill must belong to the bank through which the proceeds for that shipment will be received. Using the wrong AD code creates a downstream mismatch in EDPMS.

eBRC on the DGFT portal: Both banks push the inward remittances they receive to the DGFT portal, mapped to your PAN. You link your DGFT account once and see remittances from both banks there. There is no separate DGFT linkage to set up with each bank.

How Skydo Can Help You Receive Export Payments

Running two AD banks means separate EDPMS entries, separate FIRC tracking, and matching each payment to the right bank for every invoice. Skydo offers a way to receive international payments with less of that operational overhead.

Six currencies: Skydo provides free virtual accounts in USD, EUR, GBP, SGD, AUD, and CAD. You can share the relevant virtual account details with foreign buyers across different currencies without needing a separate AD bank for each currency.

Free FIRA certificate: Every transaction comes with a free FIRA certificate, the remittance record you need for GST zero-rating, income tax documentation, and export compliance. No RM calls, no chasing.

Settlement within 1 working day: Settlements arrive in your Indian bank account within 1 working day, with predictable timelines. You always know when a payment has landed and can match it to the correct invoice immediately.

Flat, transparent pricing: Pricing is $19 for transactions under $2,000, $29 for 10,000, and 0.3% for amounts above $10,000. There are no monthly fees, and charges apply only when a transaction happens.

eBRC closure assistance: Link your DGFT account once, then bulk upload shipping bills to auto-map IRMs and generate eBRC in a click. This removes the manual coordination that typically requires follow-up with multiple bank relationship managers.

Quick setup and India-based support: Setup takes 10–15 minutes. India-based support is available via WhatsApp, call, and text, with no global queue.

You can get started at skydo.com.