DGFT Rolls Out NPCI-Enabled Real-Time Bank Validation for IEC Issuance and Changes

The Directorate General of Foreign Trade (DGFT) has introduced a new, fully digital mechanism for validating bank account details in Importer Exporter Code (IEC) applications and amendments. Through Trade Notice No. 23/2025-26 dated 06 February 2026, DGFT has operationalised an NPCI-based workflow that enables real-time verification of bank accounts linked with IECs, significantly tightening the authentication framework around export–import credentials.

This move is an extension of DGFT’s earlier push towards system-based verification using API integrations with government and authenticated databases, as originally announced through Public Notice No. 32/2025-26 dated 20.11.2025. The latest step brings in the National Payments Corporation of India (NPCI) to validate the genuineness and correctness of bank account information used for IEC registration and modifications.

Background: Shift Towards Automated and Trusted IEC Validation

DGFT has been gradually transitioning from manual checks to a fully electronic, data-backed validation regime for IEC-related details. Earlier initiatives had already set up API-based verification with various government repositories to reduce errors and curb misuse.

The new NPCI integration is aimed at:

  • Ensuring that IEC-linked bank accounts are genuine and active
  • Matching bank details accurately with PAN and name records
  • Minimising incorrect or fraudulent bank information in the IEC system
  • Streamlining processing of IEC applications with automated system decisions

From February 2026 onwards, bank accounts furnished in IEC-related forms are routed to NPCI for confirmation, and DGFT’s system processes the application based on the status received.

Scope and Coverage of the New NPCI-Based Workflow

The NPCI validation framework applies to:

  • Fresh applications for IEC
  • Requests for modification of IEC, specifically where bank account details are being added, changed, or updated

Under this structure, the core objective is to strengthen the authenticity of bank information tied to an IEC while offering a seamless digital workflow to the assessee and other stakeholders involved in foreign trade.

Mandatory Requirements for IEC Applicants Under Revised System

Under the revised workflow, every IEC applicant or existing IEC holder proposing a modification must comply with two key obligations:

1. Declaration of All Active Bank Accounts Linked with PAN

Each assessee applying for IEC or modifying IEC-linked bank accounts must:

  • Declare all active bank accounts associated with the PAN used in the IEC
  • Avoid omission of any active bank account that is linked to that PAN
  • Keep inactive or closed accounts out of the declaration to avoid mismatch or failure

For instance, if an assessee, Mr. Sharma, has three active current accounts under the same PAN in different bank branches, all three such accounts must be correctly disclosed wherever the IEC framework requires disclosure of bank details.

2. Exact Matching of PAN, Name and Bank Account Details

The assessee must ensure that:

  • The PAN entered in the IEC application matches the PAN registered with the bank
  • The name appearing in the bank’s record corresponds exactly to the name linked to the PAN and as declared in the IEC application
  • Bank account number, IFSC and other relevant identifiers are correctly entered, without typographical errors

Even minor discrepancies—for example, “Sharma Enterprises Pvt Ltd” vs “Sharma Enterprise Private Limited”—may lead to validation failure if bank records reflect only one correct version. Therefore, assessee must align their IEC details strictly with bank records.