AD Code Transfer: How to Move It to Another Bank
TL;DR - Summary
- What is an AD Code in banking and why does it matter for exporters? - An AD Code in banking is a 14-digit number issued by a bank authorised by the Reserve Bank of India (RBI) to deal in foreign exchange, and exporters must register it at customs (ICEGATE) before they can file shipping bills.
- Why would an exporter need to transfer their AD Code to another bank? - An exporter needs to transfer their AD Code when they switch their primary current account to a new bank, or when a bank merger or branch closure makes the original branch code inactive.
- What are the steps to transfer an AD Code to another bank? - To transfer an AD Code, you notify your old bank in writing and request a cancellation letter and a No Objection Certificate, get a fresh AD Code from the new bank, re-register at ICEGATE, update every customs port, and inform your freight forwarder and Customs House Agent.
- What happens to pending FIRCs and export realizations when you transfer an AD Code? - Pending Foreign Inward Remittance Certificates (FIRCs) and export realizations must be settled through the old bank, because the FIRC is always issued by the bank that actually received the foreign payment, regardless of where your AD Code now sits.
What Is an AD Code in Banking?
An AD Code, short for Authorised Dealer Code, is a 14-digit number issued by a bank that is authorised by the Reserve Bank of India (RBI) to deal in foreign exchange. It identifies the specific bank branch through which an exporter routes their international transactions.
Indian exporters must register their AD Code at customs (ICEGATE) before filing shipping bills. Without it, export documentation cannot be processed and foreign remittances cannot be linked to the correct bank account.
Take a Bengaluru-based software exporter invoicing a US client $5,000. They must have their AD Code registered at the customs port so the inward remittance is reconciled against the correct shipping bill and the bank can issue a Foreign Inward Remittance Certificate (FIRC).
An AD Code is tied to your bank, not to you, so you don't carry it from one bank to another. If you switch your primary bank, the AD Code doesn't move with you, and your customs port registration stops being valid until you re-register it.
How Is a 14-Digit AD Code Structured?
A 14-digit AD Code is a numeric code issued by the exporter's bank branch. It is unique to that specific branch of the authorised dealer bank and encodes the bank and branch identity.
Because the code identifies the branch, two branches of the same bank have different AD Codes. Switching branches or banks may require a fresh code and re-registration.
When you register the code at ICEGATE, it becomes the identifier customs uses to link every outbound shipment to the bank account where the foreign payment will be received.
Why Would an Exporter Need to Transfer Their AD Code?
An exporter needs to transfer their AD Code when their primary transacting bank changes. That happens when they switch their primary current account, when a bank merger or branch closure makes the original branch code inactive, when they're dissatisfied with their current bank's services, or when they open a new bank relationship to access better export credit.
- Switching your primary current account: You might move from a PSU bank to a private bank for better forex rates or faster settlement.
- Bank merger or branch closure: These can force an involuntary AD Code transfer, since the original branch code becomes inactive.
- Dissatisfaction with banking services: Slow FIRC issuance, high forex conversion charges, or poor trade finance support are common operational reasons exporters initiate a switch.
- Better export credit: Some exporters open a new bank relationship specifically to access pre-shipment or post-shipment export credit, and they need the AD Code aligned to the new lender.
Whatever the reason, once your primary transacting bank changes, the AD Code at ICEGATE must be updated. If it isn't, new shipping bills filed under the old code will create reconciliation mismatches.
Steps to Transfer Your AD Code to Another Bank
To transfer your AD Code, you notify your old bank in writing, get a fresh AD Code from the new bank, re-register at ICEGATE, update the registration at each customs port, and inform your freight forwarder and Customs House Agent (CHA). Follow the steps in this order. Doing them out of sequence, especially closing the old account before completing pending realizations, can disrupt export compliance.
- Notify the old bank in writing: Submit a formal request to your existing bank saying you are switching your AD Code to a new bank. Request a cancellation letter and a No Objection Certificate (NOC) confirming no pending export obligations are outstanding.
- Obtain a fresh AD Code from the new bank: Approach the new bank's branch with your IEC, export documents, and business KYC. The new bank issues a new 14-digit AD Code letter for that branch.
- Re-register at ICEGATE: Log in to the ICEGATE portal, go to the AD Code registration section, and submit the new AD Code along with the new bank's branch details. The old code must be deactivated at the same time.
- Verify port linkage on ICEGATE: Under ICEGATE's centralized module, once your new AD Code is approved online by Customs, it applies automatically across all customs ports linked to your IEC. Verify on the portal that all your active export ports reflect the updated AD Code.
- Inform your freight forwarder and CHA: Your CHA files shipping bills on your behalf. Update them with the new AD Code to avoid bills being filed against the old, deactivated code.
What Documents Do You Need to Complete the AD Code Transfer?
You need documents from both banks. The old bank provides an AD Code cancellation letter, a No Objection Certificate (NOC) confirming no pending export obligations, and a statement confirming all Inward Remittance Messages (IRMs) have been reconciled. The new bank provides a fresh AD Code issuance letter on bank letterhead, the new branch's account details, and a KYC acknowledgement. Have all of them ready before you approach ICEGATE to prevent delays.
| From the Old Bank | From the New Bank |
|---|---|
| AD Code cancellation letter | Fresh AD Code issuance letter (on bank letterhead) |
| No Objection Certificate (NOC) confirming no pending export obligations | Bank account details of the new branch (IFSC, branch address) |
| Statement confirming all IRMs (Inward Remittance Messages) have been reconciled | KYC acknowledgement of the exporter by the new bank |
Besides the bank documents, carry your IEC certificate, GST registration, and PAN to the new bank when you request the fresh AD Code letter.
The new bank's AD Code letter must be on official letterhead, signed by an authorised signatory, and include the bank's RBI authorisation details. A generic letter without these elements will be rejected at ICEGATE. Ask the new bank to issue the letter in duplicate, one for ICEGATE registration and one for your records and your CHA.
What Happens to Your Pending FIRCs and Export Realizations During the Transfer?
Pending FIRCs and export realizations must be settled through your old bank. The Foreign Inward Remittance Certificate (FIRC) is always issued by the bank that actually received the foreign payment, regardless of where your AD Code now sits.
- Payments still in transit: Any foreign payment your overseas buyer sent before the AD Code switch but that hasn't yet credited your account must still be received in the old bank account. You must obtain the FIRC from that bank before the account is closed. RBI rules require the FIRC to be issued by the bank that received the payment.
- Closing the account too early: If you close the old account while payments are still in transit, those funds may be returned to the sender or held in a suspense account. That creates a compliance gap: the export realization will not be recorded against your IEC, which can trigger an Export Data Processing and Monitoring System (EDPMS) outstanding.
- EDPMS closure: For shipping bills filed under the old AD Code, the corresponding inward remittances must be reconciled (EDPMS closure) by the bank that holds that code. The new bank cannot close an EDPMS entry for a shipping bill filed under a different bank's AD Code.
- Run both accounts in parallel: The safest approach is to keep both accounts running for 60–90 days after the transfer. Direct new export invoices to the new bank and let all in-transit payments settle into the old account.
How to Transfer Your AD Code and Still Receive International Payments Without Disruption
To keep receiving international payments during an AD Code transfer, update your overseas buyers with new bank account details only after the new AD Code is fully active at ICEGATE and confirmed by the new bank.
Switching banks mid-export cycle creates a window where inward remittances can be delayed or misrouted. The period between deactivating the old AD Code and activating the new one at ICEGATE is the highest-risk phase for payment disruption.
During that window, your overseas buyers may send payments to the old bank account details (SWIFT/IBAN) they have on file. If that account is already closed, the funds are returned or stalled, and the export realization is not recorded.
Skydo gives Indian exporters virtual accounts in USD, EUR, GBP, SGD, AUD, and CAD that are independent of which AD Code bank you are using. Here is what that looks like in practice:
- Fees: Inward remittances under $2,000 cost a $19 flat fee, $2,000–$10,000 costs a $29 flat fee, and over $10,000 costs 0.3%. There is no hidden forex markup.
- Free FIRA: Every transaction through Skydo comes with a free FIRA certificate. There is no chasing the bank's RM and no delays, and it is fully digital.
- eBRC closure assistance: Link your DGFT account once and bulk-upload shipping bills to auto-map IRMs and generate an eBRC in a click. This reduces the manual reconciliation burden that bank switches typically amplify.
- Setup: Setup takes 10–15 minutes, there are no monthly fees, and you pay only when you transact. That makes Skydo a low-friction addition during a bank transition rather than a replacement commitment.
What is an AD Code in banking?
An AD Code (Authorised Dealer Code) is a 14-digit number issued by an RBI-authorised bank branch to identify the bank through which an exporter routes foreign currency transactions. It must be registered at customs before shipping bills can be filed.
What is a 14-digit AD Code?
How do I get an AD Code from my bank?
Does my AD Code number stay the same if I switch banks?
Can I register the same AD Code at multiple customs ports?
Who issues the FIRC for payments received before I switched banks?
What is EDPMS and does a bank switch affect it?
How long does an AD Code transfer typically take?
