The best current account for an export business is the one whose bank makes foreign receipts, EDF filing and payment evidence painless, not the one with the lowest minimum balance. Because the bank where your foreign money lands normally becomes your AD bank for the EDF, you are choosing a compliance partner as much as a place to keep money. Compare banks on how they handle inward remittances, FIRAs, conversion and EDF submission, and ask the questions before you open the account.
Key takeaways
- Your receiving bank normally becomes your AD bank, so its EDF process matters every month.
- Ask how the bank accepts EDFs. Each bank publishes its own policy under Regulation 19: branch, email or online.
- FIRA or remittance advice handling saves or costs hours each quarter. Ask whether it is automatic and digital.
- Conversion rates and inward remittance charges vary. Ask for the schedule and how rates are set.
- An EEFC account option lets you hold foreign currency rather than converting every receipt immediately.
Why the choice matters more for exporters
A domestic business mostly needs payments, cheques and a decent app. An exporter adds a recurring cycle on top:
- Foreign client pays; the bank receives the remittance and may ask for a purpose code.
- The bank converts it or credits an EEFC account, and issues an advice or FIRA.
- You file a monthly EDF with the bank, which enters it into EDPMS within 5 working days.
- You close EDPMS entries with a declaration (invoices up to ₹10 lakh) or with evidence (above ₹10 lakh).
- The bank processes extensions if a client pays late.
Every step involves the bank. A branch that knows this cycle saves you time; one that does not costs you time every month.
Features to compare
We are not ranking banks; offerings change, and the right choice depends on your volume, currencies and location. Use this as a checklist.
| Feature | Question to ask | Why it matters |
|---|---|---|
| Export capability at your branch | Does this branch handle export transactions, or is it linked to another branch? What is the AD code? | Field 1.6 of the EDF; who processes your filings |
| EDF submission channel | How do you accept EDFs: branch, email, net-banking trade portal? | Monthly convenience |
| Purpose code handling | Will you ask before crediting, or apply a default? How do I correct it? | Wrong codes cause GST and eBRC trouble |
| FIRA or remittance advice | Automatic for each credit? Digital? On request only? | Needed above ₹10 lakh and for GST |
| Conversion | How is the rate set? Can I see the margin? | Affects every receipt |
| Inward remittance charges | What is charged per remittance, by currency? | Adds up for frequent small receipts |
| EEFC account | Can I open one alongside the current account? | Hold foreign currency for later use |
| Relationship support | Is there a named RM or trade desk for exporters? | Faster answers on holds and queries |
| EDPMS follow-up | How do I check that my EDF is recorded and entries closed? | Avoids surprises months later |
| Statements and data | Can I download statements in formats my accounting software reads? | Easier reconciliation |
Questions that reveal how the bank really works
Product brochures rarely answer these. Ask the branch or RM directly and note the answers:
- "When a foreign payment arrives without a purpose code, what happens and how quickly do you contact me?"
- "Can you show me a sample FIRA or inward remittance advice?"
- "If I file my EDF by email, who receives it, and how do I know it has been entered into EDPMS?"
- "How do you handle a request to extend the realisation period?"
- "If an inward credit is held pending my EDF, who do I call?"
Vague answers are an answer in themselves.
A worked example
Two founders of Ember Grove Software Pvt Ltd in Indore were choosing between two banks (call them Bank A and Bank B) for the company's export receipts, expected at about USD 25,000 a month from four clients.
| Point | Bank A | Bank B |
|---|---|---|
| Branch handles exports | Yes, AD code given on the spot | Linked to a city main branch; AD code by email later |
| EDF channel | Email to trade desk | Branch counter |
| FIRA | Digital, per credit, automatic | On written request |
| Conversion | Rate shown in advice | Explained verbally |
| EEFC account | Available | Available |
| Minimum balance | Higher | Lower |
Bank B was cheaper to hold money in. Bank A was easier to run monthly compliance with. Ember Grove estimated that manual FIRA requests and branch visits would cost its accountant several hours a month, and chose Bank A. Another business with fewer foreign receipts might reasonably choose differently.
After opening, the board passed a resolution naming the signatories (our board resolution format is a starting point) and the company's first EDF, for November 2026, went to Bank A by 30 December 2026.
Should you open an EEFC account too?
An Exchange Earners' Foreign Currency account lets you hold part of your export receipts in foreign currency instead of converting all of it to rupees. It can help if you pay foreign vendors, tools or contractors in the same currency, or if you prefer to choose when to convert. Ask your bank how EEFC works with its current account and whether it changes how FIRAs are issued. If you decide to open one, the EEFC account request letter is a ready format.
Mistakes to avoid
- Receiving export payments into a savings account. Businesses should receive business income into a current account in the business's name.
- Splitting receipts across several banks without a reason. Each bank where you receive foreign payments may need its own EDF. More banks, more filings.
- Switching banks without tidying up. Close open EDPMS entries and collect pending FIRAs before moving, and update your clients' remittance instructions.
- Choosing purely on minimum balance. The monthly compliance effort is the bigger cost for most exporters.
Our explainer on what an AD bank is covers why the receiving bank matters so much.
This is general information, not legal, tax or financial advice. Compare current offers directly with banks.
Frequently asked questions
Which bank is best for an export business current account?
There is no single best bank; it depends on your currencies, volumes and location. Compare banks on EDF submission, FIRA handling, conversion transparency, charges and support for exporters, and ask to see sample documents.
Does my current account bank become my AD bank?
Normally, yes. The AD bank for your EDF is usually the Authorised Dealer Category-I bank where your foreign money lands. If clients pay into that current account, that bank receives your EDF.
Can I receive export payments in a savings account?
Businesses should use a current account in the business's name. Individuals working on personal contracts are in a different position following RBI's 7 October 2026 statement, but should still check with their bank.
Should I open an EEFC account?
It can help if you spend in foreign currency or want to choose when to convert. Ask your bank how it works alongside your current account.
What should I ask a bank before opening an exporter account?
Ask how it accepts EDFs, how it handles purpose codes, whether FIRAs are automatic and digital, how conversion rates are set, what inward charges apply and who supports exporters.
Bottom line
For exporters, a current account is the front door of your compliance cycle. Choose the bank whose EDF, FIRA and remittance processes you can live with every month, then file regularly. Once the account is set up, the free EDF form generator handles the monthly declaration.
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.