Understanding EDPMS Full Form and Its Essential Role in Export Management
Indian businesses exporting products and services abroad significantly affect the economy's overall growth. Exporting to international markets brings high-value foreign currencies and contributes to the national GDP (Gross Domestic Product) growth.
However, until 2014, there was no unified system to track all these export operations, which led the Reserve Bank of India (RBI) to launch the Export Data Processing and Monitoring System (EDPMS in full form).
If you are exporting your services abroad, this article will help you learn more about EDPMS, its process, the EDPMS caution list, and more.
What is EDPMS?
The Export Data Processing and Monitoring System (EDPMS) is an online platform introduced by the Reserve Bank of India (RBI) in 2024 to enhance the efficiency of monitoring export transactions in India.
Launched on March 1, 2014, The Export Data Processing and Monitoring System (EDPMS) is a central system that:
- Tracks exports from start to finish in India
- Links with customs and banks
- Monitors shipments and payments coming into India
Reasons for launching EDPMS
Before the launch of EDPMS, the export lifecycle was completely manual. Exporters were required to submit export documents, including Bills of Lading, Airway bills, Invoices, etc., to the bank. This resulted in longer timelines and a broader scope of exploitation.
EDPMS was launched for the following reasons:
- Due to the absence of a centralised system, RBI didn’t have visibility over the payments of export shipments. This means there was no process to track if exporters were hiding critical data related to shipping bills to maximise their profits
- EDPMS helps RBI to identify the number of foreign remittances meant for India but are still not cleared
- EDPMS also helps RBI to estimate the extent of hedging against INR. This helps RBI in managing its Forex operations
Thanks to EDPMS, exporters now have greater visibility over inward remittances. Additionally, with RBI strictly regulating the export lifecycle, the Indian business environment has become much more stable.
Who is EDPMS relevant to?
EDPMS is primarily for:
- Goods and software exporters who are involved in shipping bills and SOFTEX forms. Exporters must fill out a SOFTEX form to declare the value of their exports and ensure compliance with the RBI under the Foreign Exchange Management Act (FEMA). SOFTEX forms are specifically designed for exporters of software transmitted through virtual data communication links. For physical exports, you don’t need to fill out a SOFTEX form
- Banks use EDPMS to download shipping bills, match datasets with inward remittances and export proceeds, and track the status of consignments exported. EDPMS helps banks verify and allow exporters to claim their benefits quickly
EDPMS clearance is a must for exporters in India. If exporters fail to comply with the EDPMS requirements, their banks may place them on a caution list (more on this later). This listing can have severe implications, including increased scrutiny from regulatory bodies and potential disruptions to their export activities.
Note that if you are a freelancer offering services to international clients, you don’t need to worry about EDPMS status. The majority of freelancing services don’t fall under the traditional definition of export. If you don’t use SOFTEX forms, you don’t need to register your transactions in EDPMS.
How do I Get my EDPMS Clearance?
To obtain your EDPMS clearance, follow these steps:
Step 1: Register on the EDPMS portal
- Register through your authorised bank
- Provide necessary details like Importer Exporter Code (IEC), bank account information, and authorised personnel details
Step 2: Export process
- Arrange for the dispatch of goods to the buyer
- Clear customs and send the shipment
- The Customs department generates a shipping bill
- Shipping bill details are recorded digitally and sent to EDPMS (status: "Pending Ack")
Step 3: Document submission
- Share relevant documents, including the shipping bill (typically within 21 days of export)
- The bank processes documents (bill lodgment) and provides you with a reference number
- Bank updates EDPMS record to "Pending Payment"
Step 4: Payment receipt and processing
- Once you receive payment from the buyer, the bank generates an Inward Remittance Message (IRM) on EDPMS
- Bank issues a Foreign Inward Remittance Advice (FIRA) to you
- Submit the FIRA and reference number back to the bank
Step 5: Verification and closure
- The bank verifies and reconciles all data
- Upon verification, the bank generates an e-BRC (electronic Bank Realization Certificate)
- The bank closes the record on EDPMS, changing the status to "Payment"
- You can download the e-BRC from the DGFT website
Monitoring and compliance
- Regularly check your EDPMS status through your bank or the portal
- Ensure compliance with RBI guidelines
- Generate necessary reports from EDPMS for regulatory purposes
Reconciliation and issue resolution
- Work with your bank to reconcile export transactions with shipping bills and realized export proceeds in EDPMS
- Address any discrepancies or issues promptly to avoid caution listing
Here are a few additional tips for exporters to make the process seamless:
- Maintain accurate records of all transactions, shipping bills, and communications with your bank
- Stay updated on any changes in EDPMS procedures or regulations
- Seek assistance from your authorised dealer bank or trade associations if you encounter issues or delays
How to check your Shipping Bill EDPMS Status online?
To check your shipping bill EDPMS status, follow the below-mentioned steps:
- Go to this website: https://www.icegate.gov.in/
- Click on Services >> Quick Information and click on Public Enquiries highlighted in red
- Under Public Enquiries, Click on RBI-SB-EDPMS Enquiry
- Now enter the required details like location, shipping bill number, and shipping bill date and click Submit
- You will now be able to see the shipping bill status on EDPMS
What Documents do I Need to Close my Shipping Bill Cycle on EDPMS?
You will need the following documents to close your shipping bill cycle on EDPMS:
- Shipping Bill: This is the primary document that details the exported goods and is necessary for customs clearance. You must submit to customs authorities, and it is essential for tracking in EDPMS
- Invoice: The commercial invoice outlines the transaction details, including the product description and value. It is important for validating the transaction and linking it to the shipping bill. Use a free invoice generator tool to create your commercial invoice.
- Bill of Lading: This document is a receipt for the goods shipped and a contract between the shipper and carrier. It is important to confirm that the goods have been dispatched
- Export Contract: A copy of the export contract may be required to demonstrate the terms of sale agreed upon with the buyer, providing legal backing to the transaction
- Payment Receipt: Proof of payment received from the buyer, such as a remittance advice or bank statement, is crucial for showing that you have realised the export proceeds
- Foreign Inward Remittance Advice (FIRA): This document acts as evidence that payment has been received from abroad, which is essential for closing the shipping bill in EDPMS
- Bank Certification: A certification from your bank confirming that all required documents have been submitted and that payment has been received can help facilitate the closure process.
How to close the shipping bill in EDPMS?
Below are the steps to close the shipping bill in EDPMS:
- Confirm that the export proceeds or the payment has been received and recorded in your bank account
- Ensure that documents like FIRA and Authorized Dealer are submitted to the bank
- The bank will acknowledge the details and update the EDPMS portal with the transaction details
- Monitor the EDPMS portal regularly to track the realisation of your shipping bills
- The bank will now reconcile the export transactions with the shipping bills
- Once the reconciliation step is completed and the transaction datasets are matched, the bank will close the transactions in the EDPMS, and the exporter will receive the closure notification
What is the EDPMS Caution list?
The EDPMS Caution List is a mechanism the Reserve Bank of India (RBI) uses to monitor and flag exporters with outstanding export proceeds or compliance issues.
This system flags exporters who don't receive payments on time or have other rule-breaking issues. As per FEMA, shipping bills on EDPMS should be closed within nine months of shipment dispatch.
RBI's 2016 circular stated that exporters would be automatically added to the caution list if a shipment bill wasn't closed on EDPMS within two years from the shipment date.
The implications were:
- Exporters on the caution list cannot access export benefits
- Almost all shipments from listed exporters come under scrutiny
Many exporters faced issues receiving payments within two years for various reasons, including fraud or importers not abiding by terms.
In October 2020, RBI updated the EDPMS system. Exporters are no longer automatically put on the caution list. Instead, AD Category I banks (Authorized Dealer Category-I refers to banks and financial institutions in India that the RBI authorises to conduct a wide range of foreign exchange transactions) have the authority to add exporters to the list if they suspect discrepancies.
What are the Benefits of EDPMS?
The benefits of EDPMS include:
Streamlined process
EDPMS automates and simplifies the export reporting process, leading to smoother transactions and reduced administrative burdens for exporters. This efficiency helps manage export documentation more effectively, allowing businesses to focus on their core operations.
An exporter previously spent hours manually filling out forms for each shipment. This led to errors, frustrating visits to the bank, and delays in payment processing. EDPMS helps the exporter upload shipping details simultaneously, automatically populating all other documents. This helps the exporter reduce errors, save time, minimise bank visits, and accelerate payment processing. EDPMS has helped the exporter focus more on their core business operations.
Better compliance
If you're involved in export transactions in India, you need EDPMS clearance. The Reserve Bank of India (RBI) regulates this requirement to ensure all export transactions are properly documented and reported.
If you don't obtain EDPMS clearance:
- If a shipping bill remains open for more than two years without proper payment realization, you risk being added to a caution list
- Your business may face increased scrutiny from banks and regulatory authorities
- You could experience operational disruptions, including difficulties in conducting future transactions
- There's a potential for legal issues and penalties from regulatory bodies like the RBI
Increased transparency
EDPMS enhances transparency in international trade by providing a clear mechanism for tracking export transactions and inward remittances. This transparency is crucial for maintaining trust among exporters, banks, and regulatory authorities.
Critical data collection
The system plays a vital role in collecting accurate and timely data on export bills, essential for monitoring and managing the country’s export activities. This data helps in making informed decisions regarding trade policies.
What is the Difference between EDMPS and IDPMS?
While both EDPMS and IDPMS (Import Data Processing and Monitoring System) are essential tools for monitoring trade activities in India, EDPMS is specifically designed for managing export transactions, ensuring exporters' compliance, and facilitating the tracking of export-related financial data.
In contrast, IDPMS focuses on import transactions, ensuring all necessary documentation is in place for goods entering the country.
To summarise, EDPMS focuses on exports, and IDPMS focuses on imports. The detailed differences between EDPMS and IDPMS are as follows:
| Factors | EDPMS | IDPMS |
| Purpose | Monitors export transactions and ensures compliance with regulations for exporters. | Monitors import transactions and ensure importers' compliance |
| Focus Area | Primarily, it focuses on the export of goods and services from India. | Primarily, it focuses on the import of goods into India. |
| Transaction Type | Deals with export bills, shipping bills, and foreign inward remittance certificates (FIRC). | Handles import bills, evidence of import, and settlement of bills of entry (BoE). |
| Caution Listing | Maintains a caution list for exporters whose transactions are improperly reported or realised. | It may also have a caution list but focuses on compliance issues related to imports. |
| System Features | Includes modules for reporting advance remittances for exports, tracking shipping bills, and managing electronic bank realisation certificates (eBRC). | Includes operational procedures for managing advance remittances for imports, settlement processes, and verification of import evidence. |
Role of Skydo in Streamlining Compliance
Skydo streamlines compliance for Indian exporters and freelancers engaged in international trade. It automates critical processes such as FIRA generation, purpose code management, and KYC procedures, simplifying regulatory compliance.
Skydo's real-time tracking and reporting features ensure transparency. Skydo also facilitates GST compliance, making it easier for exporters to claim refunds.
With its centralised approach, Skydo significantly reduces the administrative burden associated with international payments.
Want to explore Skydo first-hand?
What is the EDPMS?
EDPMS stands for Export Data Processing and Monitoring System. It's an online platform introduced by the Reserve Bank of India (RBI) in 2014 to enhance the efficiency of monitoring export transactions in India. It tracks the end-to-end lifecycle of all exports, from shipping to receipt of export payments.
What is the difference between EDPMS and IDPMS?
How do I check my EDPMS status?
When was EDPMS launched?
