Why eBRC is Every Indian Exporter’s Secret Weapon?

In the competitive world of international trade, Indian exporters face numerous challenges, from navigating complex regulations to ensuring timely payments and claiming government incentives. One crucial document that plays a pivotal role in this process is the Electronic Bank Realisation Certificate (eBRC). At Sriya Enterprise, we understand the intricacies of export documentation and are committed to helping exporters streamline their operations. In this blog, we delve into what eBRC is and why it is indispensable for every exporter in India.

The Evolution of eBRC: From Paper to Digital Self-Certification

The concept of Bank Realisation Certificate (BRC) originated as a paper-based document to verify the repatriation of export proceeds, ensuring compliance with the Foreign Exchange Management Act (FEMA) and Reserve Bank of India (RBI) guidelines. Exporters had to manually obtain physical certificates from banks and submit them to authorities like the Directorate General of Foreign Trade (DGFT), which often led to delays, paperwork burdens, and inefficiencies.

To modernize this process, the DGFT, in collaboration with the RBI, introduced the Electronic Bank Realisation Certificate (eBRC) in August 2012. This digital version allowed banks to upload remittance details directly to the DGFT server, eliminating the need for physical documents and enabling faster verification. The system gained further momentum with the launch of the Export Data Processing and Monitoring System (EDPMS) in March 2014 by the RBI. EDPMS centralized export data tracking, integrating eBRC to monitor outstanding export bills and ensure timely closure of transactions. This integration reduced processing times significantly— from weeks to days—and helped prevent fraud by providing real-time visibility into foreign exchange inflows.

In a major upgrade, the DGFT rolled out self-certification guidelines for eBRC in 2023. A pilot launch of the revamped eBRC system began on November 15, 2023, allowing exporters to self-certify their remittances on the DGFT portal without relying solely on bank-issued confirmations. By January 2024, most banks had transitioned to this system, empowering exporters with greater control and reducing dependency on intermediaries. This evolution has streamlined operations, with exporters now able to access and certify eBRCs online, cutting administrative costs by up to 50% in some cases and accelerating incentive claims.

Why is eBRC Important for Exporters? Facts and Figures

eBRC is more than a regulatory requirement, it’s a cornerstone for financial viability and growth in exports. Here’s why, backed by key facts and figures:

1. Proof of Payment Realisation and Compliance

eBRC confirms that export proceeds have been repatriated within the RBI-mandated 9-month period, now 15 months from November 2025(extendable under certain conditions). In FY 2023-24, India’s total exports reached approximately USD 778 billion (USD 437 billion in merchandise and USD 341 billion in services), according to the Ministry of Commerce and Industry.

2. Unlocking Government Export Incentives

eBRC is mandatory for claiming incentives under India’s Foreign Trade Policy (FTP), which aims to boost exports to USD 2 trillion by 2030. Key schemes include:

• RoDTEP (Remission of Duties and Taxes on Exported Products): Launched in 2021, it refunded over INR 10,000 crore in duties in its first year alone, with claims tied directly to eBRC-verified realisation values.
• Duty Drawback: Disbursed around INR 25,000-30,000 crore annually, based on the lower of FOB value or eBRC amount.
• Advance Authorisation and EPCG: These allow duty-free imports for exports, with eBRC ensuring fulfilment of export obligations. In FY 2023-24, services exports contributed to a trade surplus of USD 162.78 billion, much of which relied on eBRC for incentive processing. Delays in eBRC can lead to rejected claims, potentially costing exporters millions—highlighting its role in enhancing cash flow and competitiveness.

3. Facilitating Data Sharing and Transparency via MOUs

eBRC’s importance extends to inter-agency collaboration for monitoring cross-border transactions. In January 2014, the DGFT signed a Memorandum of Understanding (MoU) with the Enforcement Directorate (ED) to share foreign exchange realisation data through eBRC. This enables the ED to track suspicious transactions, prevent money laundering, and ensure compliance with anti-terror financing laws

4. Integration with GSTN and Fraud Prevention

Further, in October 2016, the Goods and Services Tax Network (GSTN) signed an MoU with DGFT for sharing eBRC data on export remittances. This integration links export data with GST refunds, automating verification for input tax credits and reducing fraud. For instance, discrepancies in declared exports versus realised proceeds can now be flagged in real-time, improving transparency. In a sector where India’s merchandise exports grew from USD 314 billion in FY 2020-21 to USD 437 billion in FY 2023-24, eBRC’s data-sharing mechanism has been instrumental in curbing over-invoicing and under-remittance, estimated to save the government billions in potential revenue losses annually.

5. Operational Efficiency and Risk Mitigation

The digital framework has reduced processing delays by 70-80%, allowing faster incentive disbursements. For service exporters (via SOFTEX forms), eBRC ensures seamless integration with SEZ/STPI authorities. Non-compliance can result in IEC suspension or blacklisting, impacting future trade.

Frequently Asked Questions

Conclusion

From its paper-based origins to the self-certification era, eBRC has transformed India’s export ecosystem, supporting a sector that contributes over 20% to GDP. With robust data sharing via MOUs and billions in incentives at stake, proper eBRC management is non-negotiable for exporters aiming to capitalize on India’s projected export growth.

At Sriya Enterprise, we offer expert assistance as well as service, where a company oe an entity can outsource eBRC issuancethus enabling them in handling, compliance, and incentive optimization. Contact us today to elevate your export business!

Stay tuned for more export insights from Sriya Enterprise.