(MENAFN- Live Mint)

New Delhi: In a significant relief for micro and small exporters, including the fast-growing segment of e-commerce exporters, the Reserve Bank of India (RBI) has simplified the procedure for closing entries in the Export Data Processing and Monitoring System (EDPMS) and Import Data Processing and Monitoring System (IDPMS).

The new rules, effective immediately, allow Authorised Dealer (AD) category-I banks to close small-value transactions of up to ₹10 lakh per bill based only on a declaration from the exporter or importer, instead of detailed documentation and repeated compliance checks, as per a circular issued by RBI's chief general manager N. Senthil Kumar on Wednesday.

The move is expected to particularly help micro, small and medium enterprises (MSMEs ), which often struggle with complex compliance requirements in cross-border trade.

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Exporters can now reconcile several small shipping bills on a consolidated basis through quarterly declarations. Additionally, banks have been instructed not to impose penalties for delays in regulatory compliance.

As per the order, the RBI has asked banks to review and rationalise charges levied on these transactions, ensuring they are commensurate with the services rendered.

Industry leaders say the change is a decisive step for the country's e-commerce exporters, many of whom had opted out of exports due to the heavy compliance burden.

“It's the consistent and sometimes pushy efforts of e-commerce exporting MSMEs with the support of the Directorate General of Foreign Trade (DGFT), which has enabled a new era for e-commerce exports from India. This will transform e-commerce exports from India and can be termed as a decisive step to accelerate e-commerce exports from micro and small enterprises," said Vinod Kumar, president, India SME Forum.

E-commerce boost

Kumar added that more than 82% of new e-commerce exporters who had withdrawn from the export market now have a strong reason to return.

“The government has been quite openly talking and supporting the need for this, and finally, the RBI has agreed and accepted our contention," he said.

The government officials and trade bodies expect this to ease entry barriers for small firms venturing into global e-commerce platforms, giving them the flexibility to compete with larger exporters.

With e-commerce exports identified as a key pillar for India's trade growth strategy, the RBI's move is being seen as one that could add momentum to the sector at a crucial juncture.

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“This has been a key ask of MSMEs, and the bottlenecks in compliance were seriously impacting the ability of small units to sustain and grow their exports. For many of our members, particularly in the engineering sector, the cost and time involved in reconciling small-value transactions often outweighed the value of the shipments themselves," said Pankaj Chadha, chairman of the Engineering Export Promotion Council (EEPC).

“The RBI's relaxation will ease this pain point, improve cash flows, and allow exporters to focus on expanding markets rather than getting caught up in procedural hurdles," said Chadha, who represents nearly 70% of MSMEs in the sector.

Export push

The commerce ministry is also working on increasing e-commerce exports through the E-Commerce Export Hubs (ECEHs), which aim to support small and medium-sized exporters, artisans, and businesses by providing dedicated zones for cross-border trade. The government has additionally taken measures such as raising the courier export limit to ₹10 lakh, extending Duty Drawback and Remission of Duties and Taxes on Exported Products (RoDTEP) benefits to courier-mode exports, and establishing over 1,000 Dak Ghar Niryat Kendras (DNKs).

According to an Invest India report, the country's e-commerce market is projected to reach $325 billion and the digital economy to $800 billion by 2030.

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India, with 881 million internet users, is the world's second-largest online market. Its growing digital economy could make it the third-largest online retail market by 2030, as per the Invest India report.

The global e-commerce market was valued at approximately $26.8 trillion in 2024 and is projected to grow to $214.5 trillion by 2033, according to market research firm Mordor Intelligence.

Key Takeaways

• The RBI has significantly simplified the EDPMS/IDPMS procedure for transactions up to ₹10 lakh, allowing AD banks to close them based on a simple exporter or importer declaration instead of detailed documentation.
• The move is a major boost for micro and small enterprises, especially the rapidly expanding e-commerce export sector, which has been plagued by complex compliance burdens.
• Industry experts, like the India SME Forum, estimate that this regulatory relief could encourage over 82% of new e-commerce exporters who had withdrawn from the market to return.
• The relaxation is expected to improve MSME cash flows and reduce both the cost and time spent on procedural hurdles, which often outweigh the value of small shipments.
• This RBI decision aligns with broader government efforts, including raising the courier export limit to ₹10 lakh and establishing Dak Ghar Niryat Kendras, to position e-commerce as a key driver of India's trade growth.

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