What changed
RBI has revised guidelines for closing small-value export/import entries (₹10 lakh or less per bill) in EDPMS and IDPMS. Banks can now reconcile and close such entries based on a declaration from the exporter (for realisation) or importer (for payment), instead of requiring documentary proof. Declarations can be submitted quarterly in a consolidated manner for multiple bills.
What it means for you
This reduces the compliance burden for small exporters and importers by simplifying documentation. AD banks must review and rationalise charges for these transactions, ensuring they are service-based, and cannot levy penal charges for regulatory delays. Banks should update their internal processes to accept declarations and consolidate quarterly submissions.
What you must do
- Update internal EDPMS/IDPMS procedures to accept declarations for entries ≤₹10 lakh per bill.
- Communicate the new declaration-based closure option to your exporter and importer customers.
- Review and adjust service charges for small-value export/import transactions to be commensurate with services rendered.
- Ensure no penal charges are levied for delays in regulatory compliance on these entries.
Who it affects
All Authorised Dealer Category-I Banks, Small exporters and importers, Bank branches handling trade finance
What is the threshold for the simplified closure procedure?
The simplified procedure applies to entries or bills in EDPMS/IDPMS with a value of ₹10 lakh or less per entry/bill.
Can declarations be submitted for multiple bills at once?
Yes, exporters and importers can submit a consolidated declaration on a quarterly basis covering several bills for bulk reconciliation and closure.
Are banks allowed to charge penalties for delays under this circular?
No, banks are explicitly prohibited from levying any penal charges for delays in adherence to regulatory guidelines for these small-value transactions.