The Central Board of Indirect Taxes and Customs (CBIC) has launched a system-based auto-approval mechanism for Indian Financial System Code (IFSC) registration, aiming to streamline Customs procedures and improve trade efficiency.
IFSC is an 11-character alphanumeric code that identifies bank branches in India for electronic fund transfers like NEFT, RTGS, and IMPS. Under the new system, requests to register the same bank account and IFSC code for a particular Importer Exporter Code (IEC) across multiple Customs locations will be automatically approved if already approved at one location. This eliminates manual intervention by port officers.
The initiative, implemented through the ICEGATE platform, ensures faster processing of bank account approvals, simplifies registration across ports, and enables seamless credit of export incentives such as duty drawback and rebates. Previously, exporters had to seek approval at each Customs location separately.
“This practical government reform leverages technology to reduce bureaucratic hurdles and compliance costs for exporters, boosting efficiency and accelerating incentive disbursals,” said Suresh Nair, partner at EY.
The move is part of CBIC’s broader digital transformation efforts, reflecting a commitment to tech-driven governance and smoother operational workflows for exporters, banks, and Customs officials.