Understand Bank Realization certificate.

 Exporters who want to avail benefits under various export-related schemes offered by the government of India are required to provide the Bank Realisation Certificate (BRC) or Export Realisation Certificate (ERC). This certificate confirms that the exporter has received payment from the buyer in foreign currency, and it is issued by authorized dealer banks (AD banks) in India.

To monitor foreign exchange transactions, including exports and imports, the Reserve Bank of India (RBI) has developed a centralized electronic system called the Electronic Data Processing and Monitoring System (EDPMS). AD banks report all foreign exchange transactions on this system, including payments received against exports. Once a payment is received, the AD bank confirms the transaction in EDPMS and issues the BRC to the exporter.

The BRC is a crucial document required for claiming various incentives and benefits provided by the government, such as duty drawback, tax refunds, and other export promotion schemes. Additionally, it is necessary for establishing the exporter's track record for future transactions and obtaining credit facilities.

Exporters must submit shipping bills, commercial invoices, and other supporting documents to the AD bank within 21 days of the export shipment to obtain the BRC. After verifying the documents, the AD bank confirms the receipt of payment through EDPMS and issues the BRC to the exporter.

In conclusion, the BRC issued by AD banks is crucial for exporters to claim incentives and benefits offered by the government and establish their track record for future transactions. The RBI's EDPMS system is used to monitor foreign exchange transactions related to exports and imports and confirms payment received before issuing the BRC