Indian businesses engaged in global trade must use dedicated banking structures for handling foreign payments. RBI distinguishes between accounts used for collecting payments from overseas buyers and accounts used for settling import dues. These are known as Export Collection Accounts (ECA) and Import Collection Accounts (ICA).

Setting them up correctly is essential because these accounts determine how funds move, how transactions are reported and how FEMA compliance is maintained. A mistake in configuration can lead to settlement delays, bank queries or even blocked transactions.

This blog explains how each account works, who needs them and the step by step process to set them up with Indian banks or regulated payment partners.

What Is an Export Collection Account

An Export Collection Account is used to receive foreign currency payments from overseas buyers. The account holds the foreign inflow until conversion and settlement into the exporter’s INR account.

Under FEMA, exporters must repatriate export earnings to India within RBI specified timelines, so the ECA acts as the first point of receipt. Banks use this account to record inward remittances, map purpose codes and generate remittance advice or FIRA.

Exporters typically use an ECA when they:
• receive wire transfers from foreign buyers
• collect through cross border payment aggregators
• use virtual account details to accept foreign currency
• bill clients in USD, EUR, GBP or other currencies

The ECA ensures that the inflow is recorded correctly and that the bank has a clear audit trail.

What Is an Import Collection Account

An Import Collection Account is used when an Indian business needs to pay foreign suppliers. Banks often require a dedicated account or sub account structure so that foreign currency outflows can be tracked, documented and matched with import documentation.
This account allows Indian businesses to:
• pay for goods imported into India
• settle invoices issued by foreign suppliers
• comply with FEMA rules on import payments
• document foreign exchange utilisation

The ICA is essential for businesses that import raw materials, equipment, machinery or digital services from outside India.

Why RBI Requires Separate Accounts

The separation of import and export transactions is not optional. RBI requires banks to track:
• the purpose of the inflow or outflow
• the currency used
• the documentation supporting each transaction
• the timeline for repatriation or payment

The structure also helps auditors and regulators identify fraud, round tripping or incorrect classification of foreign payments.

How to Set Up an Export Collection Account

The process varies slightly across banks, but the core steps are consistent.

Step 1: Business KYC

The exporter must provide:
• PAN
• GST certificate if applicable
• business registration documents
• address proof
• details of directors or partners

Banks must complete full KYC before enabling any foreign currency receipts.

Step 2: Submit Exporter Profile

Banks request:
• nature of export goods or services
• expected yearly foreign inflow
• primary client countries
• transaction limits

This helps the bank create a risk profile.

Step 3: Sign FEMA and Export Declarations

Exporters must confirm that:
• earnings will be repatriated within timelines
• purpose codes will be correctly used
• documentation will be provided on request

Step 4: Receive Account or Virtual Account Details

Banks issue foreign currency account details or link the exporter to a regulated inward remittance partner.
For cross border payment aggregators, virtual accounts in USD, EUR or GBP may be provided for faster collection.

Step 5: Start Receiving Payments

Once active, the exporter receives:
• inward remittance advice
• conversion details
• purpose code mapping
• bank settlement into INR

These records are essential for GST returns and accounting.

How to Set Up an Import Collection Account

Import transactions require a similar but slightly different workflow.

Step 1: Business KYC and Importer Profile

Banks collect:
• IEC (Importer Exporter Code)
• details of foreign suppliers
• expected annual import value
• sector specific documents

Step 2: File FEMA Declarations for Outward Remittance

The business confirms that:
• payments relate to legitimate imports
• documentation will be submitted to support the claim
• foreign exchange will be utilised as declared

Step 3: Provide Import Documentation

Banks often require:
• proforma invoice
• purchase order
• bill of lading or airway bill
• shipping documents

Service imports may require contracts or subscription details instead.

Step 4: Activation and Payments

Once approved, the ICA allows the business to pay suppliers abroad. Each transaction is matched to supporting documents before release.

How India Focused Platforms Support Export Collection

Exporters increasingly use inward remittance platforms rather than relying only on bank wires. These platforms provide virtual accounts for foreign collection, faster settlement cycles and clean documentation that aligns with bank requirements.
The collection account they provide functions like an ECA but is optimised for service exports and digital invoicing.

Conclusion

Export and import collection accounts are essential tools for Indian businesses engaged in global trade. They ensure that every foreign inflow or outflow is documented, classified correctly and handled under RBI guidelines. Setting up these accounts involves structured KYC, clear business profiling and accurate documentation.

For exporters, using a platform aligned with India’s inward remittance framework can make the collection process faster and simpler while maintaining full compliance.

How BRISKPE Aligns With Export Collection Rules

BRISKPE is structured around RBI inward remittance norms. It provides exporters with virtual foreign currency account details, converts funds at live interbank rates and settles in INR along with required regulatory documentation.

Because it follows FEMA rules directly, exporters can set up an efficient export collection flow without dealing with multiple bank level processes or repeated compliance questions.