RBI's intent to close outstanding EDPMS entries deserves praise

The Reserve Bank of India (RBI) has put out a draft direction for closure of shipping bills in the export data processing and monitoring system (EDPMS) and called for feedback from the stakeholders before this month-end.

 

The RBI introduced the EDPMS to monitor the realisation of export proceeds in February 2014. Later, the flow of shipping bills from the Customs was automated through Indian Customs Electronic Data Interchange Gateway (ICEGATE). From January, 2022, data from Express Cargo Clearance System (ECCS) also started flowing into the EDPMS. 

 

Further, postal exports bill data also started flowing into EDPMS from January, 2025. Over the years, there has been significant increase in the number of export transactions that flow into the EDPMS, wherein each shipping bill is reconciled against payment received. With the objective of easing compliance, especially for exporters of small value goods, the RBI has now decided to simplify the process of reconciliation in EDPMS. Accordingly, draft directions have been prepared to address the issues related to regulatory compliance involving reconciliation of small value exports in the EDPMS.

 

The RBI’s draft direction says that the Authorised Dealer (AD) banks may reconcile and close the EDPMS entries for shipping bills of value up to ~10,00,000 or its equivalent based on a quarterly declaration provided by the concerned exporter indicating the details of the shipping bill and that the amount has been realised against the same. Any reduction in declared export value of the bills submitted may also be accepted based on the quarterly declaration by the concerned exporter. 

 

Besides, the AD banks may review the charges levied for handling these small-value export transactions keeping in view the revised procedure/relaxations mentioned and ensure that the same are commensurate with the services rendered and that no penal charges are levied for delays in adherence to any regulatory prescription, says the draft direction.

 

The exporters and banks should now give their feedback asking the RBI to make the draft directions final because if the final directions are issued on the same lines, many EDPMS entries that remain outstanding due to some technical issues such as receipt of export proceeds through some other bank or route will get closed.  

 

The RBI deserves appreciation for intending to close the EDPMS entries where export proceeds have been received. Similar dispensations to close the outstanding entries in the import data processing and monitoring system (IDPMS) of small-value imports should also be considered. 

 

RBI should also try to get the entries in EDPMS or IDPMS closed where free samples or supplies were exported or imported but the wrong box in the shipping bill was ticked to show that payments will come in or be remitted. It should also allow set-off of export receivables for goods against import payables for services and vice versa.

 

The RBI should also consider whether it is worthwhile policing each and every import and export transaction for payment or receipt. After all, the exporters are more worried about receiving money from the buyers and the importers are more intent on sending money to the suppliers. 

 

They should not be required to worry about how to close the outstanding entries. The RBI has made a good beginning thinking about closure of the outstanding entries in the EDPMS. It should take its intent forward for ‘ease of doing business’.

 

  Email: tncrajagopalan@gmail.com