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The Directorate General of Foreign Trade (DGFT) has sought comments and inputs from pharma exporters, Pharmaceuticals Export Promotion Council of India (Pharmexcil), banking institutions and other trade stakeholders on a draft Standard Operating Procedure (SOP) for reporting Inward Remittance Messages (IRMs) related to export transactions handled through Non-Banking Financial Company (NBFC) Factors.
The proposed framework is aimed at improving reconciliation of export remittances and enabling exporters to generate Electronic Bank Realisation Certificates (eBRCs) through the DGFT system with greater ease.
The move is relevant to pharma exporters that use factoring and other financial arrangements for managing export receivables, particularly where export proceeds are received or reconciled through NBFC Factors. Under the proposed SOP, remittance information relating to such transactions would be integrated into the DGFT system, allowing exporters to view the relevant IRMs on the portal and match the remittance details with the corresponding invoice or Shipping Bill records for self-certification of eBRCs.
The DGFT said the draft SOP has been prepared as part of its ongoing efforts to enhance transparency, efficiency and ease of doing business in the export remittance reconciliation process.
“In order to streamline the reporting of IRMs pertaining to export transactions involving NBFC Factors and to facilitate seamless self-generation of eBRCs, a Draft SOP for reporting of IRMs pertaining to NBFC Factors has been prepared,” according to a DGFT official.
For the pharmaceutical industry, the proposed system could provide a more structured mechanism for reconciling export payments where NBFC Factors are involved. The integration of remittance data with the DGFT portal is intended to reduce gaps between banking and export documentation records and provide exporters with visibility of the remittance information required for eBRC generation.
The enhanced system will allow exporters to access IRMs associated with NBFC Factors and self-certify their eBRCs after matching remittance details against the relevant invoice or Shipping Bill. According to the DGFT, the measure is intended to improve transparency and accuracy in export documentation and facilitate smoother reconciliation of export proceeds.
The development also comes against changes in the regulatory framework governing authorised entities involved in foreign exchange transactions. The RBI has notified the Foreign Exchange Management (Authorised Persons) Regulations, 2026, dated April 30, 2026. The regulations have expanded the permitted activities of Authorised Dealer Category-II (AD Category II) entities to include foreign trade transactions up to Rs. 25 lakh per transaction.
Under the FEMA, AD Category-II entities are licensed by the RBI to handle specific non-trade current account transactions and money-changing activities, but they are not permitted to handle general commercial export-import (EXIM) trade transactions.
The DGFT has pointed out that AD Category II entities may also be non-bank entities. Once licences are issued by the RBI to eligible applicants, such entities would also undertake reconciliation-related activities in the DGFT system. This could widen the participation of non-bank financial entities in export-related reconciliation processes and makes the proposed SOP relevant to a broader set of exporters and financial intermediaries.
Pharma exporters and industry bodies such as Pharmexcil, along with pharma trade associations, banking and financial institutions and NBFC Factors, have been specifically invited to examine the draft SOP and submit their comments, suggestions and inputs. The consultation is intended to help the DGFT identify operational issues and incorporate stakeholder feedback before taking further action on the proposed procedure.
Submissions of stakeholders comments or inputs are to be sent by email to [ebrc-dgft@gov.in](mailto:ebrc-dgft@gov.in) with the subject line “Comments on Draft SOP for reporting of IRMS pertaining to NBFC Factors.”
The DGFT has also stated that user manuals relating to eBRC are available on its website under the ‘Learn’ section, through ‘Application Help and FAQs ? eBRC’. Exporters requiring assistance can approach the DGFT Helpdesk through its toll-free facility or raise a service ticket through the DGFT website under ‘Services ? DGFT Helpdesk Service’.
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