New RBI Directive: EDPMS – Closure of Small Value Shipping Bills

India’s eCommerce industry has been on a steep upward trajectory, with MSMEs and individual sellers leveraging digital platforms to reach international customers. However, many of these exporters work with small ticket sizes, often below USD 1,000. For these businesses, existing compliance systems have been more burdensome than enabling.

Let’s understand this through the story of Sarthak, a small business owner from Jaipur.

Sarthak is an artisan who makes hand-painted mugs using high-quality materials like ceramic or stoneware. While he sells domestically, he has been thinking to scale his international business from some time. However, his excitement over a $900 international order quickly faded when he had to pay a hefty bank fee just to reconcile the shipping bill. The paperwork took longer than it took to make and ship the product. This made him reconsider his decision to sell internationally.

Stories like Sarthak’s are far too common in India. That’s why the Reserve Bank of India (RBI) has stepped in with a new rule that’s turning things around for small exporters.

The Reserve Bank of India (RBI) issued a new directive to simplify the closure of small-value shipping bills under the Export Data Processing and Monitoring System (EDPMS). Small exporters play a critical role in India’s export ecosystem. Simplifying processes for them is not just about reducing compliance costs; it is about empowering them to compete globally. The current initiative by the RBI is a positive step but must be viewed as part of a larger roadmap toward structural reforms.

Let’s take a look at what’s changing—and how it can make your export journey smoother and faster.

New RBI Directive for Small Exporters

On November 28, 2024, RBI released Notification No. FE.CO.Trade Se9/05.31.042/2024-25 allowing Authorized Dealer (AD) banks to close export shipping bills valued up to USD 1,000 without requiring an Electronic Bank Realisation Certificate (eBRC), provided specific conditions are met. This move is applicable till March 31, 2025.

The main aim of this directive is to reduce the compliance load for exporters dealing with small-value e-commerce shipments. Earlier, exporters had to go through a costly and time-consuming process to reconcile each shipping bill through the EDPMS system. This was especially hard on small and medium-sized businesses.

The new rule is designed with small businesses in mind—especially those doing B2C (business-to-customer) exports. It lets them spend more time growing their business and less time dealing with paperwork.

Conditions for the Closure of Shipping Bills

• Exporter must not be under investigation.
• Transaction must comply with KYC, AML, and CFT regulations.
• AD banks must be satisfied with the genuineness of the transaction and receipt of payment.
• Funds have been received against the export.

Old Procedure and Key Issues

Under the old framework, even small-value exports had to go through a lengthy reconciliation and documentation process involving:

• High Reconciliation Fees: Exporters had to pay banks ₹1,000–2,000 per shipping bill, which severely affected profit margins for low-value shipments.
• Manual, Time-Consuming Steps: The need for banks to match remittances with shipping bills manually delayed eBRC issuance.
• Unsuitable for Small Exporters: These steps were originally designed for high-value B2B transactions, not for MSMEs shipping low-cost goods via eCommerce platforms.

Old vs. New Directive: A Quick Comparison

Key Aspects	Before the New Directive	As Part of the New Directive
Procedure	Reconciliation for small transactions had to happen within the prescribed period while meeting mandatory requirements, which added to the overall cost.	Exports of up to $1,000 now get relief — a simple statement from the exporter will suffice, simplifying the process.
Compliance Fees	Banks charged ₹1,000–2,000 per shipping bill for reconciliation, reducing profit margins.	Banks are no longer required to charge fees for small-value transactions, reducing the cost associated with export realisation reconciliation.
Operational Changes	Electronic Bank Realisation Certificate (eBRC) was mandatory for export reconciliation.	eBRC is not required for eligible cases; banks can close shipping bills based on exporters’ statements.
Regulatory Compliance	Exporters were required to meet standard KYC, AML, and CFT guidelines.	Same KYC, AML, and CFT regulations apply, ensuring secure transactions while offering procedural relief.
Closure Timeline	Manual reconciliation caused delays, leaving many shipping bills pending for months.	Closure is now faster and more efficient, enabling quick financial completion of export transactions.
Ideal for	The process favoured large B2B shipments; small B2C exporters faced excessive compliance.	Specifically supports B2C exporters like eCommerce sellers handling small-value shipments.
Validity	Ongoing; all courier shipping bills had to be routed through EDPMS, regardless of value.	Reform effective till March 31, 2025.

How the New Directive Benefits Indian Exporters

The RBI’s new framework is a major win for online exporters and MSMEs based in India:

1. Lower Compliance Costs

Exporters can save significantly by avoiding reconciliation fees of ₹1,000–2,000 per shipping bill. This update significantly reduces documentation and fee-related burdens for eCommerce sellers.

2. Faster Closures

Exporting usually involves tons of paperwork — invoices, bills of lading, inward remittances, bank reconciliation, transportation charges, and more. But with the new directive, small businesses handling lower-volume shipments can expect much less paperwork and quicker processing times.

The updated guidelines aim to reduce administrative delays by easing compliance requirements for exporters involved in inward remittances and enabling the closure of shipping bills without eBRCs. This means quicker access to incentives and fewer delays in financial closure.

3. Boost to eCommerce Exports (aka More Sellers Going Global)

A large portion of cross border eCommerce shipments fall under the USD 1,000 threshold, making this directive especially beneficial for online sellers.

With easier compliance, more small Indian sellers may feel confident to venture into global trade. This will help motivate first-time exporters.

4. Encourages Legitimate Trade

By focusing on KYC and AML compliance, the directive ensures that trade remains secure while supporting genuine exporters.

5. Marked Improvement in Banking Operations

Banks can also improve their efficiency and speed when the compliance requirements for low-volume exports become easier. This, in turn, will help them offer better financing options to exporters with due diligence and attractive rates.

What Exporters Need to Do

To take advantage of this directive, exporters should:

• Maintain accurate documentation and proof of remittance.
• Work with authorized AD banks familiar with the new directive.
• Ensure compliance with KYC and AML norms.
• Self-declare legitimate export transactions honestly and transparently.

Key Recommendations to Support India’s Export Ambitions

To support MSMEs, government must come up with some measures and new laws that can help them ease their export journey. While this new directive is a positive short-term measure, many believe it should pave the way for long-term structural reforms. To build on this momentum, the government could consider:

• Increasing the Threshold Limit: Raising the cap from USD 1,000 to USD 10,000 would benefit a broader base of small exporters.
• Permanent Simplification for Small Shipments: RBI could introduce a permanent self-declaration mechanism through DGFT. A permanent mechanism with robust digital checks can reduce reliance on physical bank verification.
• Automation Integration: Streamlining platforms would make export compliance seamless. Integration between EDPMS, DGFT, Customs, and payment gateways would eliminate manual reconciliations.
• Create Awareness Among Banks: Ensure uniform implementation through clear instructions from RBI to all AD banks.

Future Outlook: Digital-First Export Compliance

This directive is a step toward modernizing India’s trade ecosystem. With the increasing digitization of cross border commerce, the future could see:

• Blockchain-based reconciliation systems
• AI-powered compliance monitoring
• A unified export portal for MSMEs integrating banking, DGFT, and customs workflows

Conclusion

The RBI’s new directive to simplify the closure of shipping bills is a landmark reform that empowers eCommerce businesses, especially MSMEs, to participate confidently in global trade. By reducing the reconciliation fees and reducing paperwork, the move significantly lowers the barriers to export compliance.

If you’re someone who sends small orders overseas and has dreaded hefty bank charges and long reconciliation waits, this is your moment to breathe a little easier. Less paperwork, no more unnecessary charges, and more time to do what you do best—sell and scale.

The RBI’s directive may be temporary for now, but it’s a great start. Hopefully, it sparks a bigger shift towards exporter-friendly policies that support small sellers and online businesses in India.

So, are you ready to take your exports global—with a little less hassle this time?

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