Industry · export and import
In trade, the documents move the money
Cross-border trade runs on terms agreed before shipping, documents that prove what happened, and banks that won't pay or close records until the papers match. Get the terms and the paperwork right and the money follows.
Importer
1Agrees terms and asks its bank to open a letter of credit
8Pays its bank and takes the documents to clear the goods
Importer's bank
2Issues the letter of credit
6Checks documents; pays under the LC terms
Exporter's bank
3Advises it to the exporter
5Checks documents and sends them on
Exporter
4Ships and presents the documents the LC lists
7Receives payment
How LILPE fits
One payment layer for Export & Import Trade
- Your businessCheckout, apps, platforms
LILPEOne API and dashboard- Routing engineRules, health, cost
- ProvidersPSPs, gateways, acquirers
- Payment networksCards, real-time rails, banks
- 01PaymentRequest arrives
- 02DecisionRules and health
- 03RouteBest provider
- 04AuthorizationApproved or retried
- 05SettlementFunds arrive
- 06ReconciliationMatched and reported
- Intelligent routing Each payment goes to an eligible provider, by your rules and recent performance.
- Smart retry Recoverable failures retried on another provider as one payment.
- Automatic failover Unhealthy providers paused; traffic moves to healthy ones.
- Reconciliation Payments matched to settlements across providers.
Availability and settlement options are confirmed during onboarding.
Payment terms, from safest for the seller to safest for the buyer
| Term | How it works | Risk sits with | Suits |
|---|---|---|---|
| Advance payment | Buyer pays before shipment | Buyer | New buyers, small orders, custom goods |
| Letter of credit | Buyer's bank undertakes to pay against matching documents | Banks, against documents | Large orders, new relationships |
| Documentary collection | Banks release documents against payment or acceptance | Shared | Established buyers, moderate trust |
| Open account | Seller ships; buyer pays by the due date | Seller | Trusted, long-standing buyers |
Simplified. Bank charges, documents and terms vary by bank and transaction; discuss with your bank's trade team.
Exporters: getting paid and closing the record
Every export creates an entry in your bank's Export Data Processing and Monitoring System (EDPMS), and that entry needs to be closed by the money arriving, within the period the rules set. Receipts that can't be tied to a shipping bill leave entries open and questions from your bank.
The fix is consistency: the same invoice number on the shipping documents, the invoice and the buyer's payment instructions, and the correct purpose code when your bank asks.
One invoice number everywhere. Shipping bill, invoice and payment reference.
Buyer told how to pay. Your bank details and the reference to quote.
Purpose code. Matching the transaction, when the bank asks.
Short payments explained. Bank charges or discounts documented, so the entry can close.
Importers: paying abroad through your bank
Import payments go out through an authorised dealer bank, with your bank's application form and declarations, and are tracked against the import in its Import Data Processing and Management System (IDPMS). The bill of entry and the payment have to be matched to close the record.
Paying an advance to a new supplier is the importer's biggest risk: if goods don't arrive, recovering money from abroad is slow. For large first orders, a letter of credit or staged payments shift that risk.
Check the supplier
Before any advance, especially a first order.
Pay through your bank
With the correct documents and purpose.
Match bill of entry to payment
So the import record closes.
Watch for changed bank details
Supplier bank changes by email are a classic fraud.
Currency risk between order and payment
Trade deals are priced today and paid weeks or months later. If the rupee moves in between, the margin moves with it. Exporters lose when the rupee strengthens; importers lose when it weakens.
Banks offer ways to fix a rate for a future receipt or payment, such as forward contracts. Whether to use them, and how much of your exposure to cover, depends on your margins and how predictable your flows are; discuss it with your bank.
A simple exposure check
List every foreign-currency receipt and payment due in the next three months. For each, ask: if the rate moved against us by a few per cent, would the deal still make money? The ones that wouldn't are where to start.
Small exports through e-commerce
Not all exports are container loads. Selling goods to consumers abroad through your own website is exporting too, and RBI's Master Direction on payment aggregators (15 Sep 2025) covers the cross-border aggregators that collect those payments: up to ₹25 lakh per transaction, with the aggregator required to give your bank the documents it needs to close export entries. See the cross-border D2C page.
- Step 1
Order paid online
Through a cross-border payment aggregator, within the per-transaction limit.
- Step 2
Goods shipped
With an invoice and shipping record for that order.
- Step 3
Export entry closed
Your bank matches the receipt to the export, using the aggregator's documents.
Where LILPE fits
This page doesn't say LILPE is an authorised dealer bank or handles letters of credit, and names no corridor, currency or partner. Trade payments run through banks under India's foreign exchange rules. Whether LILPE can help with any part of yours is confirmed during onboarding.
Trade payment questions
What are the common ways to get paid for exports?
Advance payment before shipping, open account (ship first, get paid later), documentary collection (banks exchange documents for payment or acceptance), and letters of credit (a bank undertakes to pay against matching documents). They run from safest for the exporter to safest for the buyer.
Why does my bank ask about export entries?
Banks track exports and the receipts against them in their Export Data Processing and Monitoring System (EDPMS), and imports and payments in IDPMS. Entries have to be closed as money arrives or is paid, within the periods the rules set, so keep invoices and shipping documents matched to payments.
What is a purpose code?
A code that tells the bank why money is coming in or going out, such as payment for exported goods or for a service. Your bank asks for it on foreign exchange transactions; RBI publishes the lists. Use the code that matches the transaction.
Can small exporters use online payments instead of wire transfers?
For e-commerce sales, cross-border payment aggregators can collect from buyers abroad, up to ₹25 lakh per transaction under RBI's 2025 Master Direction, and must give the exporter's bank the documents it needs to close export entries. Larger trade usually runs through banks.
How can I protect against exchange-rate moves?
Banks offer hedging products such as forward contracts to fix a rate for a future receipt or payment. Whether and how to hedge depends on your exposure; discuss it with your bank.
Does LILPE handle trade payments?
This page doesn't say LILPE is an authorised dealer bank or handles letters of credit, and names no corridor or currency. Whether LILPE can help with any part of your trade payments is confirmed during onboarding.
Official sources
- RBI — Master Direction on Regulation of Payment Aggregator (PA) (15 Sep 2025)PA-CB ₹25 lakh per transaction; documents to the exporter's or importer's bank for EDPMS / IDPMS closure.
Last reviewed . Examples, amounts and screens marked illustrative are not LILPE figures.
Guides
Guides and explainers
- Cross-borderGoing Cross-Border: What a Payment Corridor Means for MerchantsA payment corridor is the set of banks, systems and rules that move money between two countries. Using India and Nepal as an example of closely linked economies, what corridors are and what merchants should ask about one.Read the guide
- PaymentsRRN vs UTR vs Transaction ID: Which Payment Reference Do You Need?UPI apps call it a UPI reference, UTR or RRN; bank statements say UTR; card slips say RRN; merchants and payment gateways quote their own transaction IDs. What each reference is, who creates it, how an RTGS UTR is built, where to find them, which one to quote in a complaint, and how businesses use them to reconcile payments.Read the guide
- GuidesPayment Reconciliation Explained: Gateway Settlements and the Three-Way MatchReconciliation is how a business proves that what it sold, what its payment gateway collected and what reached the bank all agree. How it differs from settlement, how to read a settlement report, the three-way match step by step, common mismatches, payout reconciliation and a daily routine that works.Read the guide
- Cross-borderISO 20022 Explained: The Payment Message Standard, From pain.001 to camt.053ISO 20022 is the messaging standard behind modern payment systems, from India's RTGS to Swift's cross-border payments, which completed their move away from MT messages in November 2025. What the standard is, how message names like pacs.008 work, the messages payments teams meet most, what changed from MT103, and what it means for businesses that send, receive and reconcile payments.Read the guide
Get started
From first call to live payments
- 01Tell us what you needYour methods, markets and providers. We confirm what's available for your business.
- 02Sandbox accessTest credentials and the API reference, provided during onboarding.
- 03Integrate and testOne request pattern; run success, failure, refund and webhook flows.
- 04Go liveProduction credentials, with the LILPE team on hand for go-live.
Route every payment to where it succeeds.
Tell us which providers you use today and where payments get stuck. We'll show you what the setup would look like on LILPE.