What is Mode of Realisation?
Mode of realisation describes the arrangement under which you will get paid for an export. In trade finance, payment can be secured through a letter of credit (L/C), where the client's bank undertakes to pay against documents, or backed by a bank guarantee (BG). Or it can come in more simply: an advance, a direct bank transfer after invoicing, or a payment through a platform.
"Realisation" itself means actually receiving the export value. For services, the full value must be realised within 9 months from the invoice date, or 12 months where invoiced or settled in Indian rupees.
Why it matters for exporters
Field 1.12 in Part 1 of the EDF asks for the mode of realisation, with three options: L/C, BG or Others (which covers advances and direct transfers). For most service exporters who invoice clients and receive a SWIFT transfer, an ACH or SEPA credit through a virtual account, or a platform payout, "Others" is the right choice.
If you do pick L/C or BG, field 1.19 asks for the AD bank handling that L/C or BG. Picking L/C when no letter of credit exists can confuse the bank, so tick only what is true.
Example
Cedar Ridge Consulting LLP invoices a Canadian client CAD 14,000 on net 30 terms, paid by wire transfer. In its December 2026 EDF, Cedar Ridge selects "Others" in field 1.12 and leaves field 1.19 blank. A different exporter, Ganga Engineering Pvt Ltd, has a large project in West Asia backed by a letter of credit; it selects L/C and names the bank in field 1.19. Both used the EDF form generator.
Common confusion
Mode of realisation is not the same as mode of delivery, which describes how the service reaches the client (usually Internet). For a full walk-through, see mode of realisation in the EDF.