Electronic Bank Realisation Certificates (eBRCs) are issued to exporters to reduce their transaction costs
New Delhi: The Commerce Ministry has issued eight lakh electronic Bank Realisation Certificates (eBRCs) to exporters in the first three months since its introduction.
The initiative which aims at reducing transaction costs for exporters, was introduced on August 17 this year.
eBRCs are issued by banks after realisation of export proceeds in the country. It is required for claiming benefits under various foreign trade policy schemes.
BRC data is used by VAT, income tax and drawback departments. Moving towards paperless trade and with a view to reduce transaction cost, DGFT has introduced eBRC and stopped accepting physical copy of BRC.
The eBRC module enables electronic transmission of foreign exchange realisation from banks to DGFT server. This process is made secure by use of digital certificate.
Adoption of electronic means will strengthen transparency, speed and responsiveness of the department while bringing down the transaction cost for everyone.
The quantum of transaction cost is about 7-10 per cent of total value of Indian exports. This amounts to a significant, about USD 15 billion.