Automation of data matching leads to greater accuracy and reduces the TAT. This is applicable across all sectors.
In this direction, Reserve Bank on 28/02/2014, introduced comprehensive integrated computerized system for effective monitoring and follow-up of export transactions.
This application is known as Export Data Processing and Monitoring System (EDPMS). The inauguration was done by RBI Governor Raghuram Rajan.
As reporting in paper mode will be eliminated to a great extent, the EDPMS is also a major green initiative by the Apex bank.
The main advantages of EDPMS are:
- It will provide effective compliance with requirements relating to exports from Foreign Exchange angle and other statutory regulations.
- It will help in easier tracking and generation of export transactions.
- It will also eliminate manual data entry work at various stages.
- An alternative to filing paper based documents which will facilitate AD banks to report various related returns through a single platform.
- Eliminate / minimize manual data entry work at various stages
- Substantial reduction in reporting burden by AD banks
This centralised automated export transaction system has been developed with a single master data base for all exports. The shipping data with the Customs will be the base for all subsequent export follow-up processes.
The data validated at Custom Authorities level will be mirrored in dedicated RBI server and will be shared among the stake holders or agencies involved including banks to monitor both receipt of export documents and repatriation of export proceeds using banking channels.
Export follow-up procedure should ensure that export documents enter the Indian banking channel (for effective reporting) and the proceeds are realised and repatriated to India through the banking channel in India within the stipulated time.
The data validated at Custom Authorities level will be mirrored in dedicated RBI server and will be shared among the stake holders / agencies involved including ADs to monitor both receipt of export documents and repatriation of export proceeds using banking channels. ADs would flag incremental Data/ information in the master database under proper user/ access rights and the updated position would be available / accessible to each stake holder, till actual realization of the proceeds, on real time basis.
Under Foreign Exchange Management Act (FEMA) 1999, it is obligatory on the part of the exporters to realize and repatriate the full value of the exports. Export follow-up procedure should ensure that export documents enter the Indian banking channel (for effective reporting) and the proceeds are realized and repatriated to India through the banking channel in India within the stipulated time.
Under the erstwhile mechanism of matching of Customs data (received from Customs after shipment of goods) with Banking Data was being done by the Regional Offices (ROs) of the Foreign Exchange Department (FED) of RBI. A major portion of total export transactions however used to remain unmatched mainly due to manual entry of same data at two levels, i.e. Customs’ level and Authorised Dealer’s (AD Bank)’ level apart from leads and lags in filing EDF form and lodging of documents for negotiation/collection.