by Deepak Madan | Sep 6, 2025 | Blog
“ICEGATE scrip transfer is the official and compliant way to trade and apply RODTEP and ROSCTL scrips for customs duty payment in India.”
Trading in RODTEP and ROSCTL scrips can unlock great value for both exporters and importers — but only if you follow the correct procedures. Whether you are selling your e-scrips on the ICEGATE portal or buying them for customs duty payment, keeping the following points in mind will help you secure better rates, avoid delays, and stay compliant with DGFT and CBIC guidelines.
✅ Consolidate Scrips Port-Wise for Higher Value
If your ICEGATE Scrip Ledger shows multiple scrips across different ports—say 5 for INNSA1 and 5 for INBOM4—consolidate port-wise. Generate a single RODTEP or ROSCTL scrip per port. Why? Large-value scrips attract better rates in the market, and buyers prefer fewer, higher-value e-scrips to save on paperwork and ICEGATE transaction time.
✅ Always Deal with Verified Buyers & Sellers
Whether you’re buying scrips to save on customs duty or selling them to monetize export incentives, ensure your counterparty is KYC-verified. Dealing with unverified parties increases the risk of fraud, delayed payments, and non-compliant transfers — something no exporter or importer should take lightly. Use platforms like IBRLIVE.com that work only with vetted traders.
✅ Wait & Consolidate for Better Scrip Rates
Don’t rush to sell small-value scrips. Instead, wait for more scrips to get generated in your account and then consolidate them port-wise. This not only reduces the number of transactions but also helps fetch higher RODTEP scrip rates due to increased demand for larger scrips.
✅ Check ICEGATE Scrip Ledger to Avoid Expired Incentives
Many exporters miss out on their RODTEP and ROSCTL scrips simply because they never check their ICEGATE scrip ledger. These e-scrips are often automatically credited based on your shipping bill scrolls, but if you don’t act on them in time, they may expire unused. Also, several exporters are unaware that their product category is eligible for RODTEP/ROSCTL benefits. Always log in to your ICEGATE account and review your e-scrip ledger periodically to avoid losing valuable export incentives.
✅ Send Required Original Documents Without Delay
Importers need the original documents — Invoice, Transfer Letter (countersigned by bank), and Declaration — to complete their customs duty payment via scrips. Delay in submitting these documents could result in cancellation of the deal or loss of trust. Ensure all documents are dispatched immediately post-transfer.
✅ Take Screenshot of Port Code During Scrip Generation
Always take a screenshot of the generated e-scrip that clearly displays the port code. This is a mandatory practice. If missed, importers may ask for one shipping bill copy per scrip to confirm the port, delaying your transaction and reducing buyer interest.
✅ Use Mobile OTP on ICEGATE Instead of Email OTP
ICEGATE now supports mobile OTP for scrip transfers and receipts. It is faster and more reliable than email-based OTPs. Always register your updated mobile number with ICEGATE and prefer mobile OTP for timely transaction execution.
✅ Avoid Multiple OTP Resend Attempts — ICEGATE May Block You
Never hit resend OTP more than 3 times on ICEGATE. This may block your ID temporarily, stalling your scrip transfer. Instead, log out and retry after a few minutes for a smooth experience.
✅ Don’t Panic if Exporter Delays Transfer After Payment
If you’re an importer and have made the payment but the exporter hasn’t transferred the scrips, stay calm. You can escalate the issue to ICEGATE customer care. For secure trading, use a trusted platform like IBRLIVE, which ensures timely transfer upon payment.
✅ Exporter Transferred Scrips But No Payment Received? Call ICEGATE
In cases where the exporter has transferred the RODTEP or ROSCTL scrip but the importer fails to make the payment, you can approach ICEGATE or seek assistance from trading platforms like IBRLIVE. Escrow-secured platforms reduce this risk considerably.
RODTEP and ROSCTL scheme scrips are powerful tools for cost saving and liquidity management — but only if handled with care. Exporters and importers must follow best practices to avoid delays, ensure compliance with DGFT and CBIC regulations, and maximize returns.
To trade securely and instantly, visit 👉 https://ibrlive.com/buy-sell-rodtep-rosctl
by Deepak Madan | May 8, 2025 | Blog
RoDTEP means Remission of Duties and Taxes on Exported Products. The scheme was started by the Government of India in September 2019 to boost India’s exports by refunding the taxes and duties that are currently not being refunded to exporters.
The scheme was announced by the Ministry of Commerce and Industry to replace the Merchandise Export Incentive Scheme (MEIS) and the Rebate of State Levies (ROSL) scheme, both of which were found to be non-compliant with World Trade Organization regulations. The RoDTEP scheme is thought to be WTO-compliant and will replace MEIS and ROSL from 01, January 2021.
In the RoDTEP scheme, exporters will be eligible for a refund of multiple taxes and duties which are levied by the central, state, and local governments. These duties were not currently being refunded. This includes taxes like state and central excise duties, VAT, central sales tax, electricity duties, and fuel for logistics, among others.
The refund rate under the RoDTEP scheme will vary based on the sector and the specific product being exported. The rates will be determined by the Department of Commerce, with input from other relevant government departments. The rates are expected to be set at a level that provides an adequate incentive to exporters while ensuring that the scheme is financially sustainable.
The RoDTEP scheme is expected to benefit a wide range of industries, including textiles, leather, handicrafts, agriculture, and marine products, among others. The scheme will provide much-needed relief to exporters who have been struggling with a variety of challenges, including a strong rupee, rising costs of raw materials, and intense competition from other countries.
The process to sell scrips(RoDTEP):
RoDTEP scrips are certificates that provide a refund of duties and taxes paid on exported goods. These scrips can be sold in the open market by exporters who receive them as a benefit under the RoDTEP scheme. Here are some guidelines and steps to follow for selling RoDTEP scrips:
- Eligibility: To be eligible to sell RoDTEP scrips, you must be an exporter who has been issued RoDTEP scrips by the government.
- Register with the DGFT: To sell RoDTEP scrips, you must be registered with the DGFT and have an Import Export Licence.
- Approach a recognized agency: Only recognized agencies can purchase RoDTEP scrips. You can approach a recognized agency to sell your RoDTEP scrips.
- Submit necessary documents: You will need to submit your RoDTEP scrips, along with other necessary documents such as invoices, shipping bills, and export declaration forms to the recognized agency.
- Negotiate the price: The price of RoDTEP scrips is determined by market demand and supply. You can negotiate the price with the recognized agency based on the prevailing market conditions or you may contact the team at ibrlive.com for competitive pricing.
- Receive payment: Once the negotiations are finalized, the recognized agency will pay you for the RoDTEP scrips.
- Utilization of funds: The funds received from the RoDTEP scrip sale can be utilized for any business purposes, including payment of duties and taxes, payment to suppliers, and investment in new projects.
Looking for some other answers? Fill out the form below:
by Deepak Madan | Mar 6, 2025 | Blog
What Is a Currency Forward Contract?
A currency forward contract can be defined as buying or selling a specific currency at a specified future price for delivery on a specified future date.
Who Can Book a Currency Forward Contract?
Any importer or exporter having exposure to foreign currency can book a forward contract with its bank based on underlying (purchase order or pro forma invoice) to hedge his currency movement risk.
How to Book a Currency Forward Contract?
Step 1: On request, the bank set up a forward booking limit on behalf of its client. To set up the forward booking limit bank demands a fixed deposit of approx. 5% of your total booking requirements in the INR term. For example, if you want to book USD100000 then you will have to produce a fixed deposit of Rs. 375000.00 to your bank (considering USD/INR at 75.00). If you are a credit customer then the bank may also set up the limit based on your collateral mortgaged with the bank.
Step 2: You must produce an underlying (valid purchase order or pro forma invoice) mentioning the delivery and payment terms before your bank to book a currency forward contract.
Step 3: The Bank gives you a forward rate and with your consent, book the same. For example, if you want to book USD 100000 for delivery after the end of 3 months. Considering the current USD to INR spot rate of 75.00, the bank may give you a forward rate of 75.90. Here 0.90 is the premium for three months. Please note that exporters get the benefit of premium and importers have to pay the premium because USD is almost on premium in comparison to INR. You may refer to ibrlive.com for live forward rates.
Step 4: On successful booking of the contract bank agrees, generally on a 100 Rs. Stamp paper. The agreement contains all details of the contract and it is signed by both the bank and the client.
How Currency Forward Contracts Are Utilized?
On successful arrival of payment against export or sending the payment for import on the maturity date of the forwarding contract, the bank gives you the same rate which was booked earlier under the forwarding contract irrespective of the current spot rate on the maturity date.
A forward contract can be utilized for other payments irrespective of the underlying (purchase order or pro forma invoice) on behalf of which it was booked.
Early utilization of forwarding contracts is also possible if your payment has come earlier than the expected date.
Where to Check Exact Forward Premiums and Forward Rates?
Many websites show the month-wise or broken date forward rates for a subscription basis. You may refer to ibrlive.com to know the exact premiums and final forward rate, even for broken dates.
Advantages of Currency Forward Contract
For importers & exporters, the main advantage of booking a currency forward contract is to hedge their foreign currency exposure from adverse movements.
Exporters booking a forward contract for USD to INR, EUR to INR, GBP to INR, or any major currency benefit from a premium added to the present spot rate.
Can I Cancel a Forward Contract?
Yes, the forward contract can be cancelled on the maturity date or 3 days after the maturity date. Cancellation is done on a spot rate and any profit or loss will be passed on to the customer if the same is cancelled on or before the maturity date.
If the forward is cancelled any day between the 3 days grace period, then the profit will not be passed on to the customer but any loss will be recovered from his account.
A forward contract can also be cancelled before the maturity date. Apart from profit & loss calculation from spot day, the client will also have to forgo extra premium from the date of cancellation to maturity.
by Deepak Madan | Mar 5, 2025 | Currency Exchange
Traveling Abroad? Here’s How Much Foreign Currency You Can Take
Planning a trip abroad? Whether it’s a family vacation, a business meeting, or studies, there are limits on how much foreign currency you can take with you from India. This guide will outline the regulations set by the Reserve Bank of India (RBI) for carrying foreign currency.
The amount of foreign currency that an individual can take abroad for a private visit is:
- Any resident in India can take up to USD 250000 or equivalent in a financial year under the liberalized remittance scheme by RBI. USD 250000 as of 15.08.2021 is equivalent to Rs. 1,85,61,500.
- There is no limit on several travels but in any case, the limit should not exceed USD 250000 per financial year.
- The limit is available for individuals and not for a family. So, if there are four members in a family then each member can take USD 250000 per visit, but this limit can not be combined.
- Foreign currency notes and coins only up to USD 3000 can be carried by an individual per visit and the rest amount for USD 247000 can be carried in the form of Drafts, Store value cards, travel currency cards, and travelers’ cheques. Use a real-time currency calculator to get INR value.
- International credit cards and debit cards can also be used abroad under the total limit of USD 250000 per year.
- The air tickets bought in India in INR for travel to any foreign country will be a part of the individual’s overall limit of USD 250000/-.
- Currency notes up to Rs. 50000 can be purchased in cash and the balance can be purchased through cheques, RTGS, or bank transfers.
- For traveling to Nepal and Bhutan one can carry the currency notes of Rs. 100 and below denominations up to any limit. One cannot carry Rs. 500 and Rs 2000 notes for more than Rs. 25000.
- Travelers returning to India from a foreign trip need to surrender the unspent foreign currency notes and travelers’ cheques within 180 days of the return date, but they can retain USD 2000 only for the next visit.
- No need to surrender coins. They can be retained forever.
The allowable amount of foreign currency for a business visit abroad is:
- For business travel to foreign countries, resident Indians can take up to USD 250000 in a financial year.
- There is no limit on several travels but in any case, the limit should not exceed USD 250000 per financial year. This limit can be exhausted in a single visit also.
- Foreign currency notes and coins only up to USD 3000 can be carried by an individual per visit and the rest amount of USD 247000 can be carried in the form of Drafts, Store value cards, travel currency cards, and travelers’ cheques.
Amount of foreign currency one can take for studying abroad:
- For study abroad, one can remit up to USD 250000 in a financial year under the LRS scheme.
- This limit includes the following expenses:
- Remittance to universities or colleges for education fees and hostel fees.
- Expenses for food, accommodation, and other personal expenses.
- Tickets booked for traveling abroad from India.
- If the course fee is more than USD 250000, then Authorized Dealers (Banks & FFMCs) may permit the remittance over and above USD 250000 without prior approval of RBI based on the evidence provided.
by Deepak Madan | Mar 2, 2025 | foreclosure charges
Comprehensive Guide on Foreclosure Charges, waiver & refund.
1) What Are Foreclosure Charges, and How Do They Differ from Takeover Charges and Prepayment Penalties?
2) Is It Justified to Take Foreclosure Charges?
3) How Much Can Banks Charge for Foreclosure or Prepayment?
4) What Is the Difference Between Floating Rate Loans and Fixed Rate Loans?
5) RBI Guidelines on Foreclosure Charges for MSME Loans
6) Is there an RBI Circular Prohibiting Foreclosure Charges for MSMEs?
7) Are Foreclosure Charges Applicable to Non-Fund-Based Limits?
8) RBI Guidelines on Foreclosure Charges for Individual Borrowers
9) Viewpoints of Different Banks on Foreclosure Charges
10) How Can Borrowers Waive or Refund Foreclosure Charges?
1) What Are Foreclosure Charges, and How Do They Differ from Takeover Charges and Prepayment Penalties?
Foreclosure charges are fees imposed by a bank when a borrower repays the full loan amount before the end of the loan tenure, effectively closing the loan account. These charges compensate the lender for the loss of future interest income.
Key Differences:
| Aspect |
Foreclosure Charges |
Takeover Charges |
Prepayment Penalties |
| Definition |
Fee for repaying the entire loan early. |
Fee for transferring the loan. |
Fee for partial early repayments. |
| Scope |
Full loan repayment and closure. |
Loan balance transfer. |
Partial repayment while continuing. |
| Purpose |
Compensates for interest loss. |
Compensates for business loss. |
Compensates for partial interest loss. |
| Common Loans |
Home, personal, business loans. |
Home and business loans. |
Home (fixed-rate), car, and business loans. |
2) Is It Justified to Take Foreclosure Charges?
The justification for loan pre-closure charges is a contentious issue:
- In Favor:
- Compensates the lender for interest loss.
- Discourages frequent loan refinancing.
- Against:
- Places an unfair financial burden on borrowers.
- Contradicts the principle of financial freedom.
3) How Much Can Banks Charge for Foreclosure or Prepayment?
Although there’s no prescribed upper limit, foreclosure fees typically range from 1% to 6% of the outstanding loan amount.
As per RBI Circular No. RBI/2023-24/53 (DoR.MCS.REC.28/01.01.001/2023-24) dated August 18, 2023, banks are advised to ensure that penalties are reasonable, commensurate with non-compliance, and not used as a revenue enhancement tool.
4) What Is the Difference Between Floating Rate Loans and Fixed Rate Loans?
- Floating Rate Loans:
Interest rates vary over time, aligning with benchmark rates like the RBI repo rate or MCLR. E.g., home loans.
- Fixed Rate Loans:
Interest rates remain constant throughout the tenure, offering predictable repayments. E.g., car loans, fixed personal loans.
However, some banks may impose cancellation fees for early termination, depending on their internal policies.
5) RBI Guidelines on Foreclosure Charges for MSME Loans
RBI guidelines for MSME foreclosure charges under the BCSBI Code of Conduct stated that member banks should avoid levying foreclosure charges on MSME loans to promote transparency and fairness. However, with the dissolution of BCSBI, member banks are no longer obligated to adhere to these guidelines, and non-member banks or NBFCs, which were not bound by the Code, continue to impose foreclosure charges based on the borrower’s sanction letter.
In the MPC meeting on 09.10.2024, the former RBI Governor, Shaktikanta Das, announced that foreclosure and prepayment charges on MSME loans by banks and NBFCs would be reviewed, and a public draft would be issued. However, no such RBI circular for MSME loans has been released to date, leaving banks and NBFCs free to charge foreclosure fees as per their terms.
6) Is there an RBI Circular Prohibiting Foreclosure Charges for MSMEs?
No, there is no RBI circular on MSME loan foreclosure charges explicitly prohibits such charges. Banks and NBFCs continue to levy fees based on their policies.
7) Are Foreclosure Charges Applicable to Non-Fund-Based Limits?
Non-fund-based limits, such as guarantees or letters of credit, typically do not incur loan prepayment penalties because:
- There’s no principal repayment involved.
- Fees are earned upfront instead of interest.
8) RBI Guidelines on Foreclosure Charges for Individual Borrowers
As per RBI Circular RBI/2019-20/29, banks are prohibited from charging foreclosure charges or prepayment penalties on floating rate term loans sanctioned to individual borrowers for non-business purposes. This clarification is built on:
These provisions cover foreclosure charges for home loans, personal loans, and all other floating rate loans taken for personal use other than business.
9) Viewpoints of Different Banks on Foreclosure Charges
Only a few banks, like ICICI Bank Ltd and Central Bank of India, have adopted customer-friendly policies, avoiding MSME loan foreclosure charges. Most banks, however, continue to impose these fees for floating rate & fixed-rate loans for non-individual borrowers.
10) How Can Borrowers Waive or Refund Foreclosure Charges?
At IBRLIVE India Private Limited, we specialize in helping borrowers secure waivers or refunds of foreclosure charges, even when such charges are mentioned in the sanction letter. Our team includes experienced bankers who are well-versed in the regulatory framework and legal provisions surrounding these charges.
We adopt a structured and legal approach, knowing exactly how to proceed and whom to approach in the waiver or refund process. Over the years, we have successfully handled numerous cases across India, including disputes involving housing loan foreclosure charges, mortgage loan prepayment penalties, and foreclosure charges on MSME loans, ensuring relief for our clients and saving them substantial amounts.
If you are facing foreclosure charges, connect with us for professional guidance and effective solutions.
To avoid paying foreclosure charges when switching banks, review all terms and conditions of your current bank account before making the switch. You can also visit our product page: Foreclosure Freedom
Conclusion: The banking culture in India often presents a significant hurdle for corporate clients looking to switch their credit facilities to new banks. The threat of heavy foreclosure charges imposed by existing bankers creates an environment where clients feel compelled to stay, even when confronted with inadequate services and non-competitive pricing. IBRLIVE India Private Limited, a corporate financial consultancy, aims to break this pattern by advocating for clients and facilitating a smooth transition process without incurring foreclosure charges. Through their expertise, negotiation skills, and representation, IBRLIVE empowers clients to explore better banking options, save money, and unlock their full financial potential.
