A wrong purpose code on an inward remittance is one of the most common reasons an eBRC does not generate and an EDPMS entry stays open. The money is in your account, but on paper RBI thinks it arrived for a different reason. The fix is a purpose code amendment requested from your AD (Authorised Dealer) bank, backed by the right documents.
Quick answer
To correct an inward remittance purpose code, send your AD bank a signed request letter that names the remittance (date, amount, SWIFT reference), the current code, the correct code, and attach proof: the export invoice, the shipping bill or service contract, and the buyer's payment advice. Once the bank amends the code, ask it to apply the remittance against the right export document so the eBRC and EDPMS records update.
Why purpose codes go wrong
- The buyer's bank left the payment details blank. When the SWIFT message carries no clear reason, your bank's desk picks a default code.
- Advance vs. post-shipment confusion. A payment received before shipping should be P0103 (advance); after shipping it should be P0102.
- Goods vs. services confusion. Software and service receipts belong to the P08 group, not P0102.
- One payment, several invoices. Bulk or split payments often get coded once, incorrectly, for the whole amount.
The most common codes for exporters
| Code | What it means | Document the bank matches it to |
|---|---|---|
| P0102 | Payment for goods already exported | Shipping bill and invoice |
| P0103 | Advance payment against an export contract | Export contract or proforma invoice |
| P0802 | Software consultancy and implementation | Service invoice and contract |
| P0806 | Other IT and software services | Service invoice and contract |
Always confirm the exact code with your AD bank's current list, since banks apply RBI's purpose code master in slightly different ways.
What happens if you leave it
- The remittance cannot be matched to the shipping bill, so the EDPMS entry stays open.
- The eBRC does not issue or shows the wrong value, which holds back RoDTEP, drawback and other DGFT benefits.
- As the realisation period runs out (9 months from shipment under the FEMA 2026 rules), the open entry draws AD bank follow-ups and, eventually, caution-list risk.
Step-by-step correction with your AD bank
Step 1: Pull the remittance details
From your IRM statement or FIRC, note the date, amount, currency, SWIFT reference and the code currently applied.
Step 2: Match it to the right export document
Identify the exact shipping bill (for goods) or service invoice and contract (for services) this money belongs to. For a split payment, list each invoice and the amount against it.
Step 3: Write the amendment request
A one-page letter on company letterhead, signed by an authorised signatory, stating the current code, the correct code, and why. Attach the invoice, shipping bill or contract, and the buyer's payment advice or email confirming what the payment was for.
Step 4: Ask for application and eBRC update
Once the code is amended, request that the bank apply the remittance against the correct shipping bill or invoice, update EDPMS, and regenerate the eBRC.
Step 5: Verify on the portals
Check that the EDPMS entry shows as closed or realised and that the eBRC on the DGFT portal reflects the correct value. Keep the bank's confirmation on file for your auditors.
When the bank says no
Some trade desks resist amending codes once a quarter has closed. If that happens:
- Ask for the refusal in writing, with the reason.
- Escalate to the bank's trade operations or forex compliance head with the full document trail.
- Use the bank's formal grievance channel if the escalation stalls.
A clear written link between payment, invoice and contract resolves most cases. The cases that drag are usually the ones where documents are scattered across years.
How thefintrado helps
We reconcile your inward remittances against shipping bills and invoices, prepare purpose code amendment requests in the format your AD bank processes, and follow through until the eBRC issues and the EDPMS entry closes. Book a free 20-minute IRM and purpose code review or see our IRM Settlement & Purpose Code service.
Common questions
Quick answers
- Can a purpose code be changed after the remittance is credited?
- Yes. The AD bank can amend the purpose code on an inward remittance when you submit a written request with supporting documents such as the invoice, shipping bill or service contract. The sooner you ask, the simpler it is, ideally before the IRM is applied or the eBRC is generated.
- What is the difference between P0102 and P0103?
- P0102 is used when payment is received against goods already exported. P0103 is used for advance receipts against an export contract, where goods ship after payment. Using the wrong one breaks the automatic match between the remittance and the shipping bill in EDPMS.
- Which purpose code applies to software and IT service exports?
- Software and IT service receipts fall under the P08 group, for example P0802 for software consultancy and implementation. If a services receipt is coded as goods (P0102), it will not match your invoice and the eBRC will not reflect correctly.
- What if my bank refuses to amend the purpose code?
- Ask for the refusal in writing, escalate to the bank's trade operations or forex compliance head with the full document trail, and if needed raise it through the bank's grievance channel. A clear representation linking remittance, invoice and contract usually resolves it.
