What Is the Difference Between the P0101, P0102 and P0103 Purpose Codes?
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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Short answer
P0101, P0102 and P0103 are Group 01 export of goods purpose codes. P0101 is for export bills negotiated, purchased or discounted. P0102 is for realisation of export bills sent on collection. P0103 is for advance receipts against export contracts. The right code depends on how the bank handles the payment.
| Applies to | Governed by | Deadline | Penalty | Last verified |
|---|---|---|---|---|
| Indian exporters of goods receiving payment from buyers in countries other than Nepal and Bhutan | RBI FETERS purpose code list (A.P. (DIR Series) Circular No. 84, 29 February 2012) and the FEMA (Export and Import of Goods and Services) Regulations, 2026 | Realisation period set by Regulation 5 of the 2026 Regulations; an AD bank may extend it | Not applicable for the code itself; a wrong code can lead to bank queries and correction requests | 9 Oct 2026 |
What do the P0101, P0102 and P0103 purpose codes mean?
The three codes describe different stages and bank routes for a goods export payment. RBI's wording for each is quoted below from the FETERS purpose code list.
- P0101: 'Value of export bills negotiated / purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.) – Other than Nepal and Bhutan'. See the P0101 page.
- P0102: 'Realisation of export bills (in respect of goods) sent on collection (full invoice value) – Other than Nepal and Bhutan'. See the P0102 page.
- P0103: 'Advance receipts against export contracts, which will be covered later by GR/PP/SOFTEX/SDF – other than Nepal and Bhutan'. See the P0103 page.
The wording refers to older form names such as GR, PP and SOFTEX. The list dates from 2012, and the export rules have since changed, so ask your AD bank how it applies the codes today.
Which exporters use P0101, P0102 or P0103?
Goods exporters use these codes, depending on whether the bank negotiates the bill, collects on it, or receives money before shipment. Service exporters usually look at other groups of the RBI list.
| Situation | Likely code | Why | Best for |
|---|---|---|---|
| Bank negotiates, purchases or discounts your export bill | P0101 | Matches 'Value of export bills negotiated / purchased/discounted' | Exporters who get funds against documents |
| Bank sends documents on collection and credits you after the buyer pays | P0102 | Matches 'Realisation of export bills sent on collection' | Exporters on collection terms |
| Buyer pays before you ship | P0103 | Matches 'Advance receipts against export contracts' | Exporters taking advances or deposits |
| Shipment to Nepal or Bhutan | Check P0109 | These three codes say 'other than Nepal and Bhutan' | Exporters to Nepal and Bhutan |
| Services or software, no goods | Check Group 08 or 10 | These codes are for goods | Service and software exporters |
How do you choose between P0101, P0102 and P0103?
Start with the point at which the money arrives. Advance money before shipment points to P0103. Money released against documents by a bank that negotiates the bill points to P0101. Money after collection points to P0102.
- Note whether the payment arrives before shipment, against documents, or after the buyer pays on collection.
- Match that timing to the RBI wording above.
- Check the country. These codes exclude Nepal and Bhutan.
- Enter the code with your invoice or shipping bill details on the bank or payment dashboard.
- Ask your AD bank to confirm when the payment terms are mixed. For advances, see purpose code for advance payment export and advance payment against exports.
Does a code change when an advance is later covered by shipment?
The P0103 wording says the advance 'will be covered later' by export documents. How your bank links the advance to a later shipment depends on the bank, so ask it how it tracks the match.
- Keep the contract or proforma that supports the advance.
- Keep shipping documents for the later shipment.
Which code fits a letter of credit?
A letter of credit payment usually involves a bank negotiating documents, which can point to P0101. The right code still depends on how your bank handles the bill, so confirm with it.
- Read what a letter of credit is.
- Do not assume the code from the payment term alone.
Which other goods export codes are often confused with P0101, P0102 and P0103?
Group 01 has more codes than these three. The table lists the ones named on this page with RBI's wording.
| Code | RBI description | Use when | Best for |
|---|---|---|---|
| P0101 | Value of export bills negotiated / purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.) – Other than Nepal and Bhutan | Bank negotiates the bill | Bill negotiation cases |
| P0102 | Realisation of export bills (in respect of goods) sent on collection (full invoice value) – Other than Nepal and Bhutan | Bill is on collection | Collection cases |
| P0103 | Advance receipts against export contracts, which will be covered later by GR/PP/SOFTEX/SDF – other than Nepal and Bhutan | Money arrives before shipment | Advance receipts |
| P0108 | Goods sold under merchanting / Receipt against export leg of merchanting trade* | The deal is merchanting trade | Merchanting traders |
| P0109 | Export realisation on account of exports to Nepal and Bhutan, if any | The buyer is in Nepal or Bhutan | Nepal and Bhutan exports |
What happens if you use the wrong goods export code?
A wrong code can lead to a bank query because the remittance record then differs from the shipping documents. It rarely stops the credit, but it can slow reconciliation.
- FIRA: The remittance advice may show a purpose that does not match the invoice or shipping bill.
- GST: Goods exports are zero-rated under section 16 of the IGST Act, either under a Letter of Undertaking or on payment of IGST and claiming a refund. Mismatched records can slow a refund. See LUT filing.
- Bank: Your AD bank reports export receipts as the 2026 Regulations require, so inconsistent records can prompt questions.
Contact your bank soon after the credit with the shipping bill and invoice and ask for its correction process. See correct purpose code after payment.
Which RBI rule says this?
The code wording comes from the FETERS list. Realisation timing and bank duties come from the 2026 Regulations.
| Circular or regulation | Clause | Date | Plain meaning | Best for |
|---|---|---|---|---|
| A.P. (DIR Series) Circular No. 84 (FETERS purpose code list) | Group 01, Exports (of Goods) | 29 February 2012 | Lists P0101, P0102 and P0103 with official descriptions | Choosing a code |
| FEMA (Export and Import of Goods and Services) Regulations, 2026, FEMA 23(R)/2026-RB | Regulation 5 | In force from 1 October 2026 | Sets the realisation period for export proceeds; an AD bank may extend it | Planning receipts |
| A.P. (DIR Series) Circular No. 20 | Supersession | 16 January 2026 | Supersedes the earlier export Master Directions from 1 October 2026 | Understanding the rule change |
What mistakes do exporters make with P0101, P0102 and P0103?
- Advance as bill: Using P0101 for money that arrived before shipment.
- Nepal and Bhutan: Using these codes for Nepal or Bhutan, which RBI excludes in the wording.
- Old forms: Assuming GR, PP or SOFTEX still apply as the wording suggests, without asking the bank.
- Service as goods: Using a goods code for software or services income.
- Lost trail: Not keeping the contract or invoice that links an advance to the later shipment.
How did we verify this?
Every rule, deadline and form on this page is linked to its official source, checked on the dates below.
- RBI, Purpose code list for FETERS (A.P. (DIR Series) Circular No. 84), Group 01, codes P0101, P0102, P0103, P0108, P0109 (checked 9 Oct 2026)
- RBI, FEMA (Export and Import of Goods and Services) Regulations, 2026, Regulation 5 (checked 9 Oct 2026)
- RBI, A.P. (DIR Series) Circular No. 20 dated 16 January 2026 (checked 9 Oct 2026)
- IGST Act, 2017, Section 16, Zero-rated supply (checked 9 Oct 2026)
Frequently asked questions
Which purpose code applies to an advance received before shipping goods?
RBI's FETERS list describes P0103 as advance receipts against export contracts that will be covered later by export documents, for countries other than Nepal and Bhutan. Confirm with your AD bank how it records the advance and links it to the later shipment.
Is P0102 only for bills sent on collection?
Yes. RBI describes P0102 as realisation of export bills in respect of goods sent on collection at full invoice value, other than for Nepal and Bhutan. If your bank negotiated or discounted the bill instead, P0101 is the closer wording.
Do P0101, P0102 and P0103 apply to exports to Nepal?
No. All three descriptions say they exclude Nepal and Bhutan. RBI lists P0109 as 'Export realisation on account of exports to Nepal and Bhutan, if any'. Check with your bank before using any of the three for those countries. Ask the bank to confirm the code in writing if the shipment goes to those countries.
Can software or services income use P0101?
No. P0101 sits in the goods export group. Software and services have their own codes in other groups of the RBI list, such as P0802 and P0807 for software. Match the code group to what your invoice actually sells. Ask your bank if an invoice mixes goods and services.
What if the bank asks for a different code from the one chosen?
The bank reports the remittance, so it can ask for a code that fits its records. Share the contract, invoice and shipping documents, and agree on the code that matches RBI's wording. Keep the final choice with the supporting papers.
Where can the official P0101, P0102 and P0103 wording be checked?
The wording is in Group 01 of the FETERS purpose code list, annexed to A.P. (DIR Series) Circular No. 84 dated 29 February 2012, which RBI hosts as a PDF. This page quotes the descriptions verbatim, so compare any bank dashboard label with that list when in doubt.