With the RBI’s temporary relaxation on small-value shipping bill closures expiring on 31 March 2025, experts stress that periodic extensions are not a sustainable solution

Experts are calling for the elimination of Electronic Data Processing and Management System (EDPMS) fees, arguing that the cost burden significantly hinders the growth of Micro, Small, and Medium Enterprise (MSME) ecommerce exports from India. They believe removing this financial hurdle would unlock substantial potential and empower smaller businesses to compete effectively in the global marketplace.

The EDPMS, mandated by the Reserve Bank of India (RBI), monitors foreign exchange transactions related to export and import. While crucial for ensuring compliance and preventing financial irregularities, the associated fees are seen as particularly challenging for MSMEs, which often operate on thin margins.   

The experts highlighted the following key points:

  • Increased Accessibility: Eliminating EDPMS fees would make ecommerce exports more accessible to a wider range of MSMEs, particularly those in rural and semi-urban areas.
  • Enhanced Competitiveness: Reduced costs would allow MSMEs to offer more competitive pricing, attracting international buyers and increasing their market share.
  • Simplified Processes: While the EDPMS is necessary, streamlining the process and removing the fee burden would simplify export procedures for MSMEs.
  • Boost to Digital Exports: With the growing global demand for online products, removing EDPMS fees would capitalize on this trend, fostering a robust digital export ecosystem for MSMEs.
  • Alignment with “Digital India” and “Make in India” Initiatives: This move would align with the government’s initiatives to promote digital transformation and boost domestic manufacturing and exports.

The experts suggest that the government consider alternative mechanisms for monitoring foreign exchange transactions, such as leveraging technology and data analytics, to reduce the reliance on fee-based systems. They also propose exploring tiered fee structures based on export volume or value, offering relief to smaller exporters.

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He has contributed in ICAI, ICSI and MCCI and other various Newsletters. He is also a speaker at various platforms including seminars / webinars.