What Is the P0101 Purpose Code?

The P0101 purpose code covers the value of a goods export bill that your AD bank negotiates, purchases or discounts, where the export is covered by an export declaration. RBI's FETERS guidelines group P0101 with the other export codes and describe these as N/P/D transactions, meaning negotiated, purchased or discounted. The description names GR, PP, SOFTEX and the EC copy of the shipping bill, which were the declaration documents in use when the list was issued in 2012. From October 01, 2026, Regulation 3(1) of the 2026 Export and Import Regulations requires an Export Declaration Form (EDF) for goods at the time of export, and treats the shipping bill as the EDF at EDI ports. Exports to Nepal and Bhutan are reported under P0109 instead.

P0101 vs P0102: P0102 is "Realisation of export bills (in respect of goods) sent on collection (full invoice value) – Other than Nepal and Bhutan". The difference is how the bank handles the bill. Under P0101, the bank negotiates, purchases or discounts the bill. Under P0102, the bank only sends the bill to the buyer's bank for collection and reports the full invoice value when the payment arrives. Ask your AD bank which mode it used for each bill.

Use the P0101 purpose code when your AD bank negotiates, purchases or discounts your export bill for goods shipped from India. This usually happens under a letter of credit or under a bill discounting or post-shipment credit line. The bank pays you against the bill before or around the time the buyer pays. If the bank only collects the bill, or the money is an advance, a different code applies. In practice, the bank that handles the bill usually reports the code, so confirm it with them.

• Use P0102 instead: Use P0102 (Realisation of export bills (in respect of goods) sent on collection (full invoice value) – Other than Nepal and Bhutan) when the bank sent the bill on collection and the buyer has paid the full invoice value.
• Use P0103 instead: Use P0103 (Advance receipts against export contracts, which will be covered later by GR/PP/SOFTEX/SDF – other than Nepal and Bhutan) when the buyer pays before the goods are shipped.
• Use P0107 instead: Ask your AD bank about P0107 (Realisation of NPD export bills (full value of bill to be reported) – other than Nepal and Bhutan) when the buyer's payment arrives to settle a bill that the bank earlier negotiated, purchased or discounted.

The P0101 purpose code is used by Indian exporters of physical goods, such as manufacturers, merchant exporters and traders, whose AD bank negotiates, purchases or discounts their export bills. The AD bank reports the transaction under FETERS in line with A.P. (DIR Series) Circular No. 84 of February 29, 2012, and Regulation 18(2) of the 2026 Regulations keeps that FETERS reporting duty in place.

• For example, a textile exporter in Tiruppur ships garments to a German buyer under a letter of credit, presents the documents to its AD bank, and the bank negotiates the bill under P0101.
• For example, an engineering goods maker in Pune ships pumps to a buyer in the UAE on 90 day credit terms, and its bank discounts the export bill under P0101 so the exporter gets funds early.
• For example, a merchant exporter in Kolkata ships tea to a buyer in the UK, and its bank purchases the export bill drawn on the buyer, reporting the transaction under P0101.
• For example, a handicrafts exporter in Jaipur ships goods to a US importer under a letter of credit, and the AD bank negotiates the documents and reports P0101.

• The bank only sent the export bill to the buyer's bank on collection and has not paid you against it. Use P0105 (Export bills (in respect of goods) sent on collection – other than Nepal and Bhutan), or P0102 (Realisation of export bills (in respect of goods) sent on collection (full invoice value) – Other than Nepal and Bhutan) when the full invoice value is realised.
• The buyer pays in advance before the goods are shipped. Use P0103 (Advance receipts against export contracts, which will be covered later by GR/PP/SOFTEX/SDF – other than Nepal and Bhutan).
• The goods were exported to Nepal or Bhutan. Use P0109 (Export realisation on account of exports to Nepal and Bhutan, if any).
• You export software or services, such as freelance design or consulting, with no shipment of goods. Use A code from the services groups that matches the work. See the [purpose code list for exporters](/blog/rbi-purpose-codes-list-for-exporters)..

For the P0101 purpose code, the core documents are the export declaration, the commercial invoice, the transport document and the bill of exchange or letter of credit documents your bank asks for. Under Regulation 3(1) of the 2026 Regulations, an exporter of goods furnishes an EDF with the full export value at the time of export. At an EDI port, the shipping bill is deemed to include the EDF. Each AD bank must publish its list of documents, timelines and charges under Regulation 19(1)(a).

• Shipping bill: Keep the shipping bill number and date. At EDI ports, the shipping bill doubles as the EDF and flows into EDPMS for your AD bank. See the guide on the shipping bill.
• EDF: For exports from a non-EDI port, the Customs-authenticated EDF is forwarded to your AD bank under Regulation 3(3). See the EDF guide.
• Invoice: Give the bank the commercial invoice, matching the value and currency on the shipping bill or EDF.
• Bill documents: Provide the bill of exchange, bill of lading or airway bill, and any letter of credit documents. The exact set depends on the payment terms and your bank's policy.
• Earlier rule: The superseded Master Direction, in paragraphs B.1 and B.2, asked exporters to lodge documents with the AD bank within 21 days from the date of export for negotiation or collection. From October 01, 2026, check the timeline in your AD bank's published policy.

1. Confirm the shipment is goods exported from India to a country other than Nepal or Bhutan, with a shipping bill or EDF on record.
2. Agree with your AD bank whether it will negotiate, purchase or discount the bill, or only send it on collection.
3. Submit the export documents and the bank's application form, selecting or writing P0101 where the form asks for the purpose.
4. Quote the shipping bill or EDF number and invoice number so the bank can link the transaction to the EDPMS entry.
5. Check the bank's credit advice shows P0101, and ask the bank to correct it if the code or the shipping bill link is wrong.

• FIRA/FIRC: The inward remittance advice or certificate from your AD bank normally records the purpose of the payment. Keep it with the shipping bill and invoice for each export. Check with your AD bank on the format it issues.
• GST status: Under section 2(5) of the IGST Act, export of goods means taking goods out of India to a place outside India. Export of goods is a zero rated supply under section 16(1)(a) of the IGST Act.
• LUT: Under section 16(3), a registered person can export goods without paying integrated tax under bond or Letter of Undertaking, filed as FORM GST RFD-11 on the GST portal.
• Refund risk: The proviso to section 16(3) says an exporter of goods who gets a refund must deposit it with interest if the sale proceeds are not realised within the FEMA time limit.
• Income tax: The purpose code does not change how export income is taxed. The Income-tax Act, 2025 replaced the 1961 Act from 01.04.2026. Take advice from a tax professional on deductions and the correct return form.
• Realisation: Under Regulation 5(1)(a) of the 2026 Regulations, goods export value must be realised within nine months from the date of shipment, or twelve months if invoiced or settled in rupees. See the export realisation period guide.

• Wrong mode: Reporting P0101 for a bill the bank only sent on collection, where P0105 or P0102 fits better.
• Advance mix-up: Using P0101 for money received before shipment, which belongs under P0103.
• Nepal, Bhutan: Using P0101 for exports to Nepal or Bhutan, which RBI reports under P0109.
• Services: Choosing P0101 for freelance or service income because the description mentions SOFTEX, even though P0101 sits in the goods export group.
• Missing link: Not quoting the shipping bill or EDF number, which leaves the EDPMS entry open even after the bank pays.
• Old process: Following superseded Master Direction steps after October 01, 2026, instead of the 2026 Regulations and your bank's current policy.

The code, its official description and every rule on this page are linked to RBI and other official sources, checked on the dates below.

1. RBI: Guidelines for Submission of Data, Foreign Exchange Transactions Electronic Reporting System (FETERS), purpose code list, Purpose codes for receipts, Group 01 Exports (of Goods): P0101, P0102, P0103, P0105, P0107, P0108, P0109; file coverage table: exports (P0101 to P0109) covering N/P/D, advance and collection transactions (checked 9 Oct 2026)
2. RBI A.P. (DIR Series) Circular No. 84 dated February 29, 2012: Compilation of R-Returns, Reporting under FETERS, Paragraph 3: AD banks to report all foreign exchange transactions as per the revised purpose code list from April 2012 (checked 9 Oct 2026)
3. RBI Notification No. FEMA 23(R)/2026-RB: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (amended up to September 22, 2026), Regulation 1(2) (in force October 01, 2026); 3(1) and 3(3) (EDF for goods, EDI shipping bill, non-EDI forwarding); 4(2) (EDPMS closure, up to ₹10 lakh on declaration); 5(1)(a) (nine months from shipment, as amended September 22, 2026); 18(2) (FETERS reporting); 19(1)(a) (documents, timelines and charges) (checked 9 Oct 2026)
4. RBI A.P. (DIR Series) Circular No. 20 dated January 16, 2026: Export and Import of Goods and Services, Paragraphs 4 and 7: Master Direction on Export of Goods and Services superseded from October 01, 2026 (checked 9 Oct 2026)
5. RBI Master Direction: Export of Goods and Services (updated as on July 17, 2026; superseded from October 01, 2026), Paragraphs B.1(iv) and B.2(ii): documents lodged with the AD within 21 days of export for negotiation or collection (historical) (checked 9 Oct 2026)
6. IGST Act, 2017, Section 2: Definitions (CBIC tax information portal), Section 2(5): definition of export of goods (checked 9 Oct 2026)
7. IGST Act, 2017, Section 16: Zero rated supply (CBIC tax information portal), Section 16(1)(a), 16(3) and its proviso on non-realisation of sale proceeds for goods (checked 9 Oct 2026)
8. GST Portal user manual: Furnishing of Letter of Undertaking (FORM GST RFD-11), LUT for export of goods or services, Services > User Services > Furnish Letter of Undertaking (LUT) (checked 9 Oct 2026)
9. Income Tax Department e-filing portal: Objective and scope of the New Act, FAQ 2: the 1961 Act stands repealed on 01.04.2026 (checked 9 Oct 2026)