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DGFT upgrades bank guarantee repository to streamline pharma export compliance
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Shardul Nautiyal, Mumbai
September 01 , 2026
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The Directorate General of Foreign Trade (DGFT) has introduced enhanced features in its bank guarantee (BG) repository module on the DGFT portal to simplify and digitise the management of bank guarantees submitted by exporters, including pharmaceutical exporters.
The changes are aimed at reducing paper-based tracking, improving monitoring of guarantees approaching expiry and enabling regional authorities (RAs) to process renewal, replacement, return and encashment-related communications digitally.
In a communication addressed to all pharma exporters, members of trade and all regional authorities of DGFT, the directorate said the enhanced functionalities have been deployed across both the customer portal (CP) and back office (BO) interfaces.
The development is relevant to pharma exporters who furnish bank guarantees in connection with various export-related authorisations and compliance requirements, particularly under instruments such as advance authorisation (AA) and the Export Promotion Capital Goods (EPCG) scheme. The new system is intended to provide exporters and DGFT authorities with a structured mechanism to monitor the status and validity of such guarantees.
According to DGFT, a new “Purpose” field has been introduced in the BG Repository Module to identify whether a bank guarantee represents a fresh submission or a replacement of an existing guarantee. This is expected to make it easier for exporters and Regional Authorities to distinguish new guarantees from those submitted in place of an existing BG and facilitate proper linking of replacement guarantees.
The portal will also generate system-triggered email alerts to exporters 60 days and 45 days before the expiry of a bank guarantee. For pharma exporters, the advance notifications are intended to provide additional time to initiate renewal or replacement procedures and avoid compliance issues arising from an expired guarantee.
A DGFT spokesperson said, “Enhanced functionalities have been deployed in the bank guarantee (BG) Repository Module on the DGFT Portal, covering the customer portal (CP) and back office (BO) interfaces, with a view to streamline processing and facilitate proactive monitoring of bank guarantees.”
The upgraded system will also allow regional authorities to generate and digitally sign communications through the portal relating to renewal or replacement of bank guarantees. This includes renewal notices to exporters, renewal notices to banks, encashment notices to banks and communications for return of bank guarantees to exporters, wherever applicable.
A structured status-tracking mechanism has also been incorporated into the repository. Bank guarantees can now be tracked through stages including Pending Acceptance, Accepted, Replaced, Returned on EODC, Encashment Notice to Bank Issued, Renewal Notice to Exporter Issued and Renewal Notice to Bank Issued. This provides exporters with greater visibility into the status of guarantees submitted against their export authorisations.
The DGFT has also clarified the treatment of bank guarantees declared under the bills repository. Such guarantees will remain in “Pending Acceptance” status until they are accepted by the concerned Regional Authority. However, where a bank guarantee is linked to an invalidation file under Advance Authorisation or EPCG, its status will automatically change to “Accepted” once the concerned invalidation file is approved.
For pharmaceutical exporters, the changes could help reduce administrative delays in maintaining bank guarantees associated with export authorisations. Since expiry, renewal and replacement of BGs can have a direct bearing on the closure of export obligations and related regulatory processes, advance alerts and digital status tracking can provide exporters with better visibility over pending compliance actions.
DGFT stated that the enhancements are intended to “reduce paper-based tracking, enable proactive monitoring of expiring BGs, streamline linking of replacement BGs and facilitate uniform, digitally signed communications across Regional Authorities.”
The Directorate has also made available a User Manual on its website explaining the relevant workflows to support adoption of the new functionalities. DGFT has asked all concerned stakeholders, including pharma exporters and Regional Authorities, to take note of the changes and ensure effective adoption of the enhanced BG Repository Module.
The initiative forms part of the wider digitisation of India's foreign trade administration, with the objective of making export-related compliance processes more transparent, trackable and less dependent on physical documentation. For pharma exporters managing multiple authorisations and bank guarantees, the enhanced repository is expected to provide a centralised digital mechanism for monitoring guarantee validity and the actions required for renewal, replacement, return or encashment.
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