Delays by banks in processing export documents and updating EDPMS

Terms of use

Terms of Use

The use of this site and the content contained therein is governed by the Terms of Use. When you use this site you acknowledge that you have read the Terms of Use and that you accept and will be bound by the terms hereof and such terms as may be modified from time to time.

All text, graphics, audio, design and other works on the site are the copyrighted works of nasscom unless otherwise indicated. All rights reserved.
Content on the site is for personal use only and may be downloaded provided the material is kept intact and there is no violation of the copyrights, trademarks, and other proprietary rights. Any alteration of the material or use of the material contained in the site for any other purpose is a violation of the copyright of nasscom and / or its affiliates or associates or of its third-party information providers. This material cannot be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for non-personal use without obtaining the prior permission from nasscom.
The nasscom Members login is for the reference of only registered nasscom Member Companies.
nasscom reserves the right to modify the terms of use of any service without any liability. nasscom reserves the right to take all measures necessary to prevent access to any service or termination of service if the terms of use are not complied with or are contravened or there is any violation of copyright, trademark or other proprietary right.
From time to time nasscom may supplement these terms of use with additional terms pertaining to specific content (additional terms). Such additional terms are hereby incorporated by reference into these Terms of Use.

Disclaimer

The Company information provided on the nasscom web site is as per data collected by companies. nasscom is not liable on the authenticity of such data.
nasscom has exercised due diligence in checking the correctness and authenticity of the information contained in the site, but nasscom or any of its affiliates or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this site. The information from or through this site is provided "as is" and all warranties express or implied of any kind, regarding any matter pertaining to any service or channel, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement are disclaimed. nasscom and its affiliates and associates shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorised access to, alteration of, or use of information contained on the site. No representations, warranties or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability or applicability of the information to a particular situation.
nasscom or its affiliates or associates or its employees do not provide any judgments or warranty in respect of the authenticity or correctness of the content of other services or sites to which links are provided. A link to another service or site is not an endorsement of any products or services on such site or the site.
The content provided is for information purposes alone and does not substitute for specific advice whether investment, legal, taxation or otherwise. nasscom disclaims all liability for damages caused by use of content on the site.
All responsibility and liability for any damages caused by downloading of any data is disclaimed.
nasscom reserves the right to modify, suspend / cancel, or discontinue any or all sections, or service at any time without notice.

For any grievances under the Information Technology Act 2000, please get in touch with Grievance Officer, Mr. Anirban Mandal at data-query@nasscom.in.

New

See all

No notification found.

Delays by banks in processing export documents and updating EDPMS

Garima Prakash

@GarimaP

July 28, 2023

Public Policy

486

On July 28, 2023, we wrote to the Foreign Exchange Dealer's Association of India (FEDAI), seeking information on the status of implementation of the advisory by FEDAI to banks regarding expedited reconciliation of export documents. Our earlier represenation to FEDAI and the action taken by them is available here and here.

We have now reached out to FEDAI highlighting that exporters, especially small and medium sized (SME) exporters, continue to face challenges with banks in relation to reconciliation of export documents.

In particular, we highlighted the following challenges:

Processing fees: AD Banks charge a very high fees on each shipping bill. Some banks are charging upwards of Rs. 1400 per shipping bill for closure of entry in the Export Data Processing and Monitoring System (EDPMS). Since the order value for SME exporters is very small, these charges are too heavy for them.
Submission of documents in hard copy: Banks are requesting the submission of several documents in hard copy by the exporter on a monthly basis (such as, invoices, packing slips, SOFTEX, copy of Export Declaration Form etc.). All these documents need to be submitted for every order. Exporters have to prepare sets of documents for each order, take a print out, manually sign all these documents and then submit at branch once a month. Such a practice is too onerous and not practical for the industry, especially for small scale exporters.
Pending entries in EDPMS: The entries in EDPMS are pending to be updated by banks, for the last couple of years. This is pending even after all necessary documents have been submitted by the exporter.
Risk of non-compliance: Exporters continue to receive reminder emails from the bank asking for the document, even after the exporter has already submitted the documents. The reminder e-mails warn that, according to RBI circulars, the exporters would be caution listed if any shipping bill against them remains open for more than two years in EDPMS.
No communication channel: There is no clear communication channel with the bank to address any deficiencies or to put in a request for updating the EDPMS entries. The emails being received from banks are from a ‘no-reply’ address, and therefore can’t reverted on. While the branch office accepts the documents from exporters, the trade finance teams at banks are not contact-able.

We have emphasied that t

his is a serious problem for the industry, especially the SME players. The uncertainty and the risk of non-compliance even after the exporters are fulfilling their duties, it too high. We have sought FEDAI's support in resolving the issue.

If you are an exporter and have been facing issues with respect to delays by banks in reconciliation of inward remittances even after you have submitted all required documents, kindly write to us at garima@nasscom.in and policy@nasscom.in.

inward remittance EDPMS. RBI

Disclaimer

That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.

Garima Prakash

Manager, Public Policy and Government Affairs

Reach out to me for all things policy about e-commerce, international trade, export controls, start-ups and fintech

India’s Steps Towards a Coordinated...

Dhananjay