The Authorized Dealer (AD) Code is a significant aspect of the export-import business in India. Assigned by banks authorized by the Reserve Bank of India (RBI), the AD code is essential for exporters to execute their export transactions and receive export proceeds. In 2024, with the increasing globalization of trade, understanding the landscape of AD code banks becomes even more critical for businesses aiming to streamline their operations and comply with regulatory requirements.
This article provides a comprehensive overview of the list of AD code banks in 2024, their role in international trade, and the process of obtaining an AD code.
Understanding AD Code
The AD code is a 14-digit number provided by banks authorized by the RBI to facilitate foreign exchange transactions. This code is crucial for exporters for several reasons:
- Customs Clearance: An AD code is mandatory for customs clearance of export goods. Without it, exporters cannot ship their products internationally.
- Remittance of Export Proceeds: The AD code ensures that export proceeds are remitted to the exporter’s account. It is linked to the Export Data Processing and Monitoring System (EDPMS) to monitor the realization of export proceeds.
- Regulatory Compliance: It ensures that exporters comply with RBI regulations and helps in maintaining proper documentation of foreign exchange transactions.
Role of AD Code Banks
AD code banks play a pivotal role in facilitating international trade. They act as intermediaries between exporters and regulatory authorities, ensuring smooth execution of export transactions. Their responsibilities include:
- Issuance of AD Codes: Banks issue AD codes to exporters after verifying their credentials and business details.
- Foreign Exchange Management: They handle foreign exchange transactions, including the remittance of export proceeds and currency conversion.
- Compliance and Reporting: Banks ensure that all export transactions comply with RBI regulations and report them to the relevant authorities.
List of AD Code Banks in 2024
In 2024, several banks in India are authorized to issue AD codes. Here is a comprehensive list of some of the prominent AD code banks:
- State Bank of India (SBI): As the largest public sector bank in India, SBI has a significant presence in the international trade market. It offers a wide range of services to exporters, including issuance of AD codes.
- HDFC Bank: Known for its efficient banking services, HDFC Bank is a popular choice among exporters for obtaining AD codes and managing foreign exchange transactions.
- ICICI Bank: ICICI Bank provides robust services for exporters, including quick issuance of AD codes and efficient handling of export proceeds.
- Axis Bank: Axis Bank offers comprehensive services for exporters, ensuring smooth execution of international trade transactions.
- Punjab National Bank (PNB): PNB is another major public sector bank providing AD code services to exporters, along with a range of foreign exchange management services.
- Bank of Baroda: Known for its extensive international network, Bank of Baroda is a reliable choice for exporters looking to obtain AD codes and manage their foreign exchange needs.
- Canara Bank: With its efficient banking services, Canara Bank supports exporters by providing AD codes and facilitating foreign exchange transactions.
- Union Bank of India: This bank offers comprehensive services to exporters, including issuance of AD codes and management of export proceeds.
- Kotak Mahindra Bank: Known for its personalized banking services, Kotak Mahindra Bank is a preferred choice for many exporters for obtaining AD codes.
- IndusInd Bank: With its focus on customer satisfaction, IndusInd Bank provides efficient services for exporters, including issuance of AD codes.
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Know the AD Codes name according to Major Banks in India in 2024.
| Bank Name | AD Code Name |
| State Bank of India (SBI) | SBININBBFXD |
| ICICI Bank | ICICINBBCTS |
| HDFC Bank | HDFCINBBXXX |
| Axis Bank | AXISINBB002 |
| Punjab National Bank (PNB) | PUNBINBBISB |
| Canara Bank | CNRBINBB |
| Bank of Baroda | BARBINBBXXX |
| IDBI Bank: | IBKLINBB010 |
| Union Bank of India | UBININBBGFX |
| Kotak Mahindra Bank | KKBKINBBXXX |
Process of Obtaining an AD Code
Obtaining an AD code from a bank involves several steps. Here is a step-by-step guide:
- Select a Bank: Choose a bank from the list of AD code banks that suits your business needs.
- Prepare Documentation: Gather the necessary documents, including the Importer Exporter Code (IEC), PAN card, GST registration, and business registration certificate.
- Submit Application: Visit the chosen bank and submit the application for an AD code along with the required documents.
- Verification: The bank will verify the submitted documents and may conduct a background check on the business.
- Issuance of AD Code: Upon successful verification, the bank will issue the AD code to the exporter.
- Register with Customs: The issued AD code needs to be registered with the customs department to facilitate customs clearance of export goods.
Importance of Choosing the Right AD Code Bank
Choosing the right AD code bank is crucial for exporters as it impacts the efficiency of their export operations. Factors to consider while selecting a bank include:
- Bank’s Network: A bank with a wide international network can offer better services for handling foreign exchange transactions.
- Customer Service: Efficient and responsive customer service is essential for resolving any issues related to export transactions.
- Technology Integration: Banks with advanced technology platforms can provide seamless and quick services for managing export transactions.
- Reputation and Reliability: The reputation and reliability of the bank are critical for ensuring the smooth execution of export transactions.
Conclusion
In 2024, the role of AD code banks remains pivotal in facilitating international trade for exporters. Understanding the list of AD code banks and the process of obtaining an AD code is essential for businesses looking to expand their reach in the global market. By choosing the right bank and complying with regulatory requirements, exporters can ensure smooth execution of their international trade transactions and contribute to the growth of India’s export sector.
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