The Directorate General of Foreign Trade (DGFT) has implemented an NPCI-based real-time bank account validation system for Importer Exporter Code (IEC) issuance and modification, effective February 2026, as per Trade Notice No. 23/2025-26.
The move follows DGFT’s earlier digitisation initiative introduced via Public Notice No. 32/2025-26 dated November 20, 2025, which enabled API-based verification of IEC-related details using authenticated government databases. The latest integration with the National Payments Corporation of India (NPCI) further deepens this digital verification framework.
Objective: Ensuring Authentic IEC-Linked Bank Accounts
The NPCI integration aims to ensure that bank accounts linked with IECs are genuine, correctly mapped, and traceable, thereby reducing misuse, benami transactions, and errors in trade documentation. With this, DGFT seeks to establish a fully digital, automatic, and trusted trade facilitation system.
Under the revised workflow, real-time validation of bank account details will be carried out at the time of issuance of a new IEC, and modification of existing IEC details.
Mandatory Disclosure of All PAN-Linked Bank Accounts
As per the Trade Notice, applicants are now required to declare all active bank accounts linked with their PAN, and ensure that the PAN, applicant name, and bank account details exactly match bank records.
Any mismatch between these particulars may result in delays, deficiencies, or rejection of the application.
NPCI Validation Status and System Actions
Once bank details are submitted, they are transmitted to NPCI for validation. The system may return one of the following statuses: “Success,” “In Progress,” or “Failed.” DGFT has clearly defined the consequences of each status based on the type of application.
For new IEC applications, if all bank accounts receive a “Success” status, the application proceeds normally. If the status remains “In Progress” without any failure, the application is placed under automatic review and is auto-approved upon successful validation. However, if validation ultimately fails, the application is rejected. Where validation fails at the outset for any bank account, the application cannot be submitted until corrected details are provided.
For IEC modification requests, a similar approach applies. Applications with “In Progress” status are placed under automatic review and approved once validation succeeds. If validation fails for the first time, the application is marked “Deficient,” allowing the exporter or importer to correct the bank details and respond. Any subsequent failure leads to rejection. Modification applications with immediate validation failure cannot be submitted unless bank details are rectified.
DGFT has also clarified that in cases where validation is “In Progress,” the system will periodically fetch updated validation status from NPCI.
Advisory to Exporters, Importers, and Banks
DGFT has strongly advised all stakeholders—including exporters, importers, banks, financial institutions, export promotion councils, and commodity boards—to verify bank details, PAN linkage, and name matching before submitting IEC applications or modification requests.
Any technical difficulties or issues in submission or update may be reported through the DGFT Helpdesk.
