If your export receipts land in more than one bank, the EDF generally goes to the AD bank where the foreign money for those invoices is received. That bank is the one that records the export in EDPMS and later matches the payment against it. The practical trick is to decide, invoice by invoice, which bank the client will pay into, and then keep that choice consistent.
Key takeaways
- The EDF is submitted to an AD Category-I bank, normally the bank where the export proceeds arrive.
- With two banks, you may need two EDFs a month, each listing only the invoices paid into that bank.
- The bank details printed on each invoice decide where the money goes, so they decide where the EDF goes.
- Switching a client from one bank to another mid-stream creates mismatches. Plan the switch at a month boundary.
- If you are unsure, ask both banks how they want to handle it before you file.
Why the "landing bank" gets the EDF
Under the 2026 Regulations, a services exporter outside an SEZ submits the EDF to the AD bank. An AD bank (Authorised Dealer Category-I) is the bank licensed to handle foreign exchange transactions such as your export receipts. The rule of thumb is simple: the AD bank is normally the bank where the foreign money lands.
The reason is mechanical. Once you submit the EDF, the bank must enter it into EDPMS within 5 working days. When the client pays, the same bank sees the inward remittance and can match it to the open entry. If you file the EDF with Bank A but the money arrives at Bank B, Bank A has an open export it can never close, and Bank B has a payment with no EDF behind it. Both banks will come asking.
Software exporters outside an SEZ have one more option: they can submit the EDF to the AD bank or to STPI. SEZ units file with the SEZ Development Commissioner instead. This article is about the common case, services exporters dealing with banks.
Common multi-bank setups
| Setup | Which bank gets the EDF | What to watch |
|---|---|---|
| All clients pay into Bank A; Bank B is used only for payroll | Bank A | Simple. Bank B is not involved. |
| US clients pay into Bank A; European clients into Bank B | Bank A for US invoices, Bank B for European invoices | Two EDFs a month. Keep a client-to-bank map. |
| A payment platform settles into Bank B; direct wires go to Bank A | Bank B for platform-paid invoices, Bank A for wires | Know which invoices each platform payout covers. |
| You moved from Bank A to Bank B this year | Old invoices stay with Bank A; new ones go to Bank B | Do not move open entries without asking both banks. |
A worked example
Tarang Software LLP banks with two lenders. Its US clients pay by wire into a current account at one bank, which we will call Bank North. Its UK and EU clients pay through a payment platform that settles into a different bank, Bank South.
In November 2026, Tarang raised six invoices:
- Three to US clients, totalling USD 18,500, with Bank North's details on the invoice.
- Three to EU and UK clients, totalling EUR 7,200 and GBP 2,100, with the platform's collection details, which settle to Bank South.
Tarang files two EDFs for November 2026. EDF 1 goes to Bank North with three rows. EDF 2 goes to Bank South with three rows. Each carries that bank's AD code in field 1.6 and its name and address in 1.10. Both are due by 30 December 2026.
Each bank enters its own EDF into EDPMS. When the payments arrive, each bank matches its own receipts. Nothing crosses over.
When a client pays into the wrong bank
It happens. A client uses an old bank detail, or a new finance clerk picks the wrong account from their vendor master. You filed the EDF with Bank North; the money landed in Bank South.
What to do:
- Tell both banks promptly, in writing. Explain which invoice the payment relates to and where the EDF was filed.
- Ask Bank South what it needs to accept the payment against an EDF filed elsewhere, or whether it wants you to submit a fresh EDF or other documents.
- Ask Bank North how it will treat the open entry. It may need evidence of receipt from Bank South to close it.
- Fix the client's vendor master so it does not happen again.
The process differs by bank, and FEMA does not prescribe a single route for exporters here. Expect some back-and-forth. If Bank South holds the credit pending documents, our remittance release request letter gives you a format to start the conversation.
Keeping it clean
A few habits prevent most multi-bank problems:
- One client, one bank. Assign each client to a single receiving account and print only that account on their invoices.
- Keep a client-to-bank map in your EDF register: client name, receiving bank, AD code.
- Change banks at month boundaries. If you move a client from Bank A to Bank B, make the switch from the first invoice of a new month.
- Do not split one invoice across banks. If a client insists on paying part to each, talk to both banks first.
- Track the realisation clock separately per bank. Services exports must be realised within 9 months from the invoice date. Each bank monitors its own entries.
Our guide to changing your AD bank covers the full move if you are consolidating.
Is it better to use one bank?
Often, yes, for simplicity. One bank means one EDF a month, one set of EDPMS entries and one relationship manager who understands your business. But many exporters legitimately need two: better rates with one, a platform settling into another, or a lender's requirement. Two banks are fine if each bank only ever sees its own invoices.
This is general information, not legal or tax advice. Your banks' published EDF policies govern how they accept forms.
Frequently asked questions
Can I file all my EDFs with my main bank even if some payments land elsewhere?
That usually causes mismatches, because the bank that holds the EDF never sees the payment. File each invoice's EDF with the bank where that invoice will be paid. If you want everything at one bank, route all receipts there.
Do I need an AD code for each bank?
Yes. The AD code identifies the bank branch handling your export transactions, and each EDF carries the AD code of the bank it is submitted to. Ask each bank for its code in writing.
Can one EDF list invoices paid into two different banks?
It is better not to. Each bank enters the EDF into EDPMS and matches its own receipts. Split the month's invoices into one EDF per receiving bank.
What if I switch banks halfway through a client project?
Keep invoices already filed with the old bank there until they are realised and closed. Start filing with the new bank from the first invoice that carries its details. Inform both banks of the change.
Does a payment platform count as a bank for the EDF?
No. The EDF goes to an AD bank. If a platform settles into your Indian bank account, that bank is usually the one to receive the EDF. Check with the bank how it treats platform settlements.
Bottom line
Match the EDF to the bank where each invoice is paid, and keep that link consistent. Our free EDF form generator lets you create one form per bank, and the AD bank glossary entry explains the role in one page.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.