What is an Authorised Dealer (AD) bank?
- Verified by:
- Editorial team
- Published
- Last modified
- Reading time
- 4 min read
Short answer
An Authorised Dealer (AD) bank is a bank RBI has authorised under section 10(1) of the Foreign Exchange Management Act, 1999 to deal in foreign exchange.1 The AD bank receives a service exporter's Export Declaration Form (EDF).1 The bank records the EDF in RBI's Export Data Processing and Monitoring System (EDPMS).1 It marks the export off once paid.1
| Full form | Governed by | Who needs it | Where it is used | Related terms |
|---|---|---|---|---|
| Authorised Dealer bank | Section 10(1) of FEMA; FEMA (Export and Import of Goods and Services) Regulations, 2026; RBI Circular No. 20 of 16 January 202612 | Every exporter receiving foreign exchange in India | Export receipts, EDF filing, EDPMS and realisation extensions1 | AD code, EDF, EDPMS, PA-CB, purpose code, advance remittance |
An Authorised Dealer (AD) bank is the bank that stands between an Indian exporter and RBI's foreign exchange rules. When a client in Germany pays an Indian content agency, the AD bank converts the money, checks it, and reports it.
What does an Authorised Dealer bank mean in simple words?
An Authorised Dealer bank is a bank that RBI allows to deal in foreign exchange. Regulation 2 of the FEMA (Export and Import of Goods and Services) Regulations, 2026 (the 2026 Regulations) defines an Authorised Dealer as a person authorised under section 10(1) of FEMA.1
- Older term: you will also see "AD Category-I bank" in older RBI documents; for export receipts, ask your bank to confirm it is authorised to handle them.
- Current term: the 2026 Regulations use the term "Authorised Dealer".1
- Day to day: the bank's export or trade finance desk is where you deal with it.
Why does an Authorised Dealer bank matter for Indian exporters and freelancers?
An Authorised Dealer bank matters for Indian exporters and freelancers because it does most of the FEMA compliance work on your behalf, and it is the bank you report to.1
- Bank compliance: the AD bank receives your Export Declaration Form (EDF) and credits your account only after satisfying itself the transaction is genuine.1
- Realisation: the AD bank can extend the realisation period, which for services is nine months from the invoice date, or twelve months for rupee invoices.1
- Bank policy: regulation 19 requires each bank to have a written internal policy and standard operating procedure on extensions and charges, published on its website.1
So a freelance illustrator, a tax consultancy and a SaaS company all deal with their AD bank whether or not they realise it.
How does an Authorised Dealer bank work?
An Authorised Dealer bank works through roles the 2026 Regulations give it from 1 October 2026:1
| Role | Rule in the 2026 Regulations |
|---|---|
| Receives your EDF (for services other than software it is the specified authority; for software it shares that role with STPI) | Regulations 2 and 31 |
| Can extend the EDF deadline on a reasoned request | Regulation 3(2)1 |
| Credits your account only after satisfying itself the transaction is genuine, and updates EDPMS | Regulation 4(2)1 |
| Can extend the realisation period | Regulation 51 |
| Can allow a reduction in export value, and set-off against import payables | Regulations 6 and 71 |
| Enters EDF details in EDPMS within five working days and marks off realised exports | Regulation 181 |
| Publishes an internal policy on extensions and charges | Regulation 191 |
The bank follows the 2026 Regulations and the directions in A.P. (DIR Series) Circular No. 20 dated 16 January 2026.12 The detailed bank-side process is in AD bank export monitoring.
How do you check and use your Authorised Dealer bank?
You check your Authorised Dealer bank by asking it directly, and you use it by sending your EDFs and requests to its export desk.
- Confirm authorisation: ask your branch whether it can process export receipts and EDFs.
- Ask how it accepts EDFs: the export or trade finance desk can explain its process.
- Get its policy: if the bank's answer differs from what you read elsewhere, ask for its regulation 19 policy in writing.1
- Platforms: ask any platform you use which bank credits your money, since that is the bank that holds your export records.
For example, a design studio that receives through a payment platform still needs to know which Indian bank credits the rupees, because that bank holds the EDPMS entries.
What is the difference between an Authorised Dealer bank and a cross-border payment aggregator?
An Authorised Dealer bank holds your export records in India, while a cross-border payment aggregator (PA-CB) collects the money abroad and passes the documents to the bank. Paragraph 11(h) of RBI's Master Direction on payment aggregators requires a PA-CB to provide the documents and information the exporter needs to the exporter's AD bank, for closure of the entry in EDPMS.3
| Entity | Role for an exporter | Best for |
|---|---|---|
| Authorised Dealer bank | Receives the EDF, records it in EDPMS and marks it off when realised1 | Exporters receiving wires straight into an Indian bank account |
| Cross-border payment aggregator (PA-CB) | Collects the payment and gives the AD bank the documents to close the EDPMS entry3 | Exporters collecting through a payment platform |
What do people get wrong about Authorised Dealer banks?
People most often assume a payment platform replaces the Authorised Dealer bank, when the rupees still reach your account through an Indian bank.
- Every bank: only banks RBI has authorised under section 10(1) of FEMA can act as Authorised Dealers.1
- Platforms: an AD bank still sits behind most payment platforms.
- Switching banks: after an advance, the advance and later proceeds must go through the same AD bank unless you tell both banks.1
- Generic advice: each bank publishes its own policy on extensions and charges, so its answer can differ from general guidance.1
Which terms are related to Authorised Dealer bank?
These terms come up alongside the Authorised Dealer bank in export compliance.
- AD code: the code that identifies the AD bank on export paperwork.
- EDF: the export declaration you give the AD bank.
- EDPMS: the RBI system where the AD bank records exports.
- PA-CB: the regulated platform that works with your AD bank.
- Advance remittance: an advance that must stay with one AD bank.
- FEMA: the Act under which RBI authorises dealers.
How did we verify this?
We checked this page against the sources below on 30 October 2026. Read our methodology or report an error.
- [1]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification No. FEMA 23(R)/2026-RB, amended up to 22 September 2026 (regulations 2, 3, 4, 5, 6, 7, 10, 18 and 19)
- [2]RBI: A.P. (DIR Series) Circular No. 20 dated 16 January 2026, Export and Import of Goods and Services
- [3]RBI: Master Direction on Regulation of Payment Aggregator dated 15 September 2025 (PA-CB duties on EDPMS closure)
Frequently asked questions
Is every Indian bank an Authorised Dealer bank?+
Not every Indian bank is an Authorised Dealer bank. Only banks RBI has authorised under section 10(1) of FEMA can act as Authorised Dealers.1 Most large banks that handle foreign remittances are, but ask your branch whether it can process export receipts and EDFs before you share its details with clients.
Can I change my Authorised Dealer bank?+
You can change your Authorised Dealer bank, but if you received an advance, regulation 10(1) of the 2026 Regulations requires the advance and later proceeds to go through the same AD bank unless you tell both banks about the change.1 Plan any switch around open advances and invoices.
Can my Authorised Dealer bank extend the time to receive payment?+
Your Authorised Dealer bank can extend the realisation period under regulation 5 of the 2026 Regulations. The realisation period for services is nine months from the invoice date, or twelve months for rupee invoices, so ask for an extension before it runs out.1
What rulebook does an Authorised Dealer bank follow for exports?+
An Authorised Dealer bank follows the 2026 Regulations and the directions RBI issued with them in A.P. (DIR Series) Circular No. 20 dated 16 January 2026, which replaced the earlier Master Direction on export of goods and services from 1 October 2026.12
How quickly must an Authorised Dealer bank record my EDF?+
Under regulation 18 of the 2026 Regulations, the Authorised Dealer bank enters EDF details in the Export Data Processing and Monitoring System (EDPMS) within five working days of receiving the form.1 It then monitors the entry and marks it off once the export value is realised.
This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.
Keep reading
How does an AD bank monitor exports of services?
What your Authorised Dealer bank checks, records and approves for service exports from 1 October 2026: EDPMS entries, extensions, reductions, charges and appeals.
GlossaryWhat is an AD code?
An AD code identifies the Authorised Dealer bank that handles an exporter's foreign exchange. Why it now appears on the EDF that every service exporter files.
GlossaryWhat is EDPMS (Export Data Processing and Monitoring System)?
EDPMS is RBI's Export Data Processing and Monitoring System, where banks record exports and mark them off when paid. What it means for service exporters in 2026.
GlossaryWhat is the EDF (Export Declaration Form)?
The EDF is the Export Declaration Form in the FEMA 2026 Regulations. From 1 October 2026 every Indian service exporter files it with the bank within 30 days.