CBIC rolls out automated approval system for IFSC code registration

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The Central Board of Indirect Taxes and Customs (CBIC) has introduced system-based auto-approval for Indian Financial System Code (IFSC) code registration to streamline Customs procedures and improve trade facilitation.

 

IFSC is an 11-character alphanumeric code that uniquely identifies a bank branch in India for electronic fund transfers such as National Electronic Funds Transfer (NEFT), Real-Time Gross Settlement (RTGS), and Immediate Payment Service (IMPS).

 

Under the new mechanism, the system will automatically approve requests for registration of the same incentive bank account and IFSC code for a particular Importer Exporter Code (IEC) at multiple Customs locations, provided the same combination has already been approved at any one location.

 

“Thus, manual intervention by the Port officer will be eliminated, and the system will directly approve such requests,” the government release said. 

 

According to CBIC, the initiative will ensure swift processing of bank account and IFSC code approval requests, simplify registration across different ports, and facilitate seamless credit of export incentives such as duty drawback and rebates.

 

Exporters declare their bank accounts in the Customs Automated System to receive export-related benefits, but earlier they had to seek approval at each Customs location for the same details. The new system, implemented through the ICEGATE platform, automates this process and allows direct approval without human intervention.

 

“The move represents a practical government reform that leverages technology to reduce bureaucratic hurdles and compliance costs for exporters. Such changes can boost exporter efficiency, accelerate incentive disbursals, and contribute to broader economic goals. For stakeholders like exporters, banks, and Customs officials, this directly impacts operational workflows. On a national scale, it aligns with ongoing digital transformation efforts in Customs (e.g., via ICEGATE portal), signalling CBIC's commitment to tech-driven governance,” said Suresh Nair, partner at EY.