An Introduction to EDPMS

The Reserve Bank of India launched a software called the Export Data Processing and Monitoring System (EDPMS) in 2014. This online system allows all Indian banks to record transactions of exporters with them online. The implementation of this system enhances the transparency of the flow of dollar payments between India and other countries.

How Does the Export Data Processing and Monitoring System Work?

Here is a look at the process followed by the Export Data Processing and Monitoring System:

• Banks must download the softex forms or shipping bills issued by shipping agencies such as Special Economic Zones (SEZ) , Software Technology Parks of India (STPIs) and Customs.
• Banks should also download the entry bills issued by all ports.
• These data are then compared with the inward remittance data processed by the export companies.
• This information allows the banks to track each shipment, providing immediate updates on all apparatus status.
• Furthermore, it enables exporters to claim benefits more quickly.

The Caution and De-caution List of Exporters in EDPMS

Initially, the Reserve Bank of India instructed banks to be strict with exporters who failed to file their shipment details. However, despite multiple reminders, the export data remained outdated.

Consequently, in 2016, the RBI automated the caution or de-caution list of exporters as part of the EDPMS automation. This move was to ensure that exporters file their details within 2 years. If any shipping bills against an exporter remain unreported, they will automatically be put on the caution list.

Being on this list can disrupt the export process as these exporters are denied packing credit. Additionally, it can lead to non-negotiation of credit bills’ non-letter, meaning that banking documents will be delayed despite timely delivery of goods. This can result in the exporters having to pay demurrage charges and additional costs.

The Export Data Processing and Monitoring System Module

Here are some procedures under the Export Data Processing and Monitoring System Module:

• AD banks can suggest the inclusion of any exporter in the caution list based on their track record with the bank and the investigative body.
• These banks can recommend to the concerned Regional Office of RBI’s Foreign Exchange Department if any exporter is detrimental to these following agencies:
1. Central Bureau of Investigation ( CBI )
2. Directorate of Revenue Intelligence (DRI)
3. Enforcement Directorate ( ED )
4. Other similar law enforcement agencies
• In addition, these banks can recommend if-
1. Any exporter is untraceable or
2. Is not making genuine efforts to register the paid or payable export proceeds
• However, AD banks can also recommend the de-caution-listing of an exporter to the RBI’s Regional Office.

The Importance of the Export Data Processing and Monitoring System

With the help of this system, the Reserve Bank of India can gather critical data regarding export bills. This information helps in identifying the number of dollar remittances that are meant for India but are floating abroad. Furthermore, this data can help in determining the extent of hedging against the Indian currency, aiding the RBI in managing Forex market operations.

While some exporters complain about the lack of workforce to fill in the necessary data, others show disinterest in filling in their inward remittances details as the system increases transparency. However, if the RBI enforces strict regulations to bring all exporters under the EDPMS, it will significantly improve India’s business environment.

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