Trade Policy
EDPMS Closure: Rs 10 Lakh Relief Guide | Trad
Money received but EDPMS entry still open? Import paid but IDPMS unmatched? Sort every old entry into 4 buckets, then use RBI's Rs 10 lakh per-entry declaration relief — including quarterly bulk filing — to clear the small ones without a full evidence file.
Why old entries stay open even when the money moved
An export payment arrives, or an import payment goes out — yet the EDPMS or IDPMS entry sits open for months. That is normal, not a glitch. Receiving export proceeds does not auto-close an EDPMS entry: the receipt must be matched and the AD bank must update or close the entry after its genuineness check. Paying for an import does not auto-close IDPMS either: partials and wrong references leave it open. Context in one line: AD banks also report foreign-exchange transactions to RBI through FETERS, the Foreign Exchange Transaction Electronic Reporting System, alongside EDPMS/IDPMS — so the same mismatch can surface in more than one report.
The bank has a regulatory duty to monitor and follow up on open entries. But your finance team should reconcile its own books against the bank's outstanding list and supply the documents that close old entries. This playbook shows how.
Step 1 — pull the outstanding list and reconcile
Ask every AD bank you deal with for your current open EDPMS and IDPMS entries. Match that list against your books — invoices, shipping bills, Bills of Entry, IRMs, eBRCs, import payment advices. Anything the bank shows as open but your books show as settled is your cleanup workload. Banks must report EDFs and import documents into EDPMS/IDPMS within five working days of receiving your records, so a recently submitted document may simply be in the upload queue — check dates before escalating.
Step 2 — triage into 4 buckets
Every old entry falls into one of four buckets. Classify first, then act per bucket — each needs different documents and a different conversation with the bank.
| Bucket | What it looks like | What to give the bank |
|---|---|---|
| 1. Paid but unmatched | Money received or paid, entry still open — wrong reference, split remittance, payment through another bank | Matching proof: IRM, eBRC, payment advice, correct shipping bill or invoice number, inter-bank IRM where relevant |
| 2. Overdue export realisation | Buyer has not paid or paid short — proceeds outstanding past due date | Extension request if payment still coming, or reduction or write-off request with evidence; declaration route if within Rs 10 lakh per bill |
| 3. Unsettled import payments | Import paid but IDPMS open, or goods not yet matched to payment — includes declared service imports | Payment proof with correct Bill of Entry reference; declaration route if within Rs 10 lakh per bill |
| 4. Failed or unadjusted advances | Advance paid to supplier or received from buyer, deal failed or never adjusted against shipment | Refund proof, cancellation evidence, or adjustment against fresh shipment with bank approval |
Step 3 — use the Rs 10 lakh relief for small entries
Under RBI A.P. (DIR Series) Circular No. 12 dated 1 October 2025, entries of value equivalent to Rs 10 lakh or less per entry or bill are reconciled and closed on your declaration: the exporter declares the amount realised, the importer declares the amount paid. Any reduction in declared or invoice value of the shipping bill or Bill of Entry is also accepted on declaration. This covers outstanding entries too, and it is the fastest way to clear a long tail of small-value bills.
- Per entry, not per year: one shipping bill, Bill of Entry, or service invoice up to Rs 10 lakh (or foreign-currency equivalent) qualifies on its own.
- Covers both sides: exporters declare realisation, importers declare payment — including service imports recorded from your declarations.
- Reductions included: short realisation or lower invoice value within the limit is accepted on the same declaration.
- Quarterly bulk filing: combine several small bills into one consolidated declaration each quarter instead of filing per bill — ask your bank for its template.
Declaration is not closure
Submitting the declaration — single or quarterly bulk — does not auto-close the entry. The AD bank must still process it and confirm closure in EDPMS/IDPMS. Treat every entry as open until the bank confirms in writing.
Step 4 — handle large entries the full way
Anything above Rs 10 lakh per entry cannot use the declaration shortcut. For each large entry, prepare the exception pack: extension request with buyer confirmation if money is still coming; full evidence for reductions (bank charge advices, discount agreements, short-shipment proof); third-party or group-company payment linkage where the remitter differs from the invoiced party. Merchanting-trade transactions also sit in EDPMS/IDPMS, so include inward and outward legs. Keep the bank's written approval for every extension, reduction, or third-party receipt.
Exporter checklist — what to send the bank this week
- Download the outstanding EDPMS/IDPMS list from each AD bank and tick off entries your books already show as settled.
- Bucket every open entry: paid-but-unmatched, overdue export, unsettled import, failed or unadjusted advance.
- For each Rs 10 lakh-or-less entry, draft the declaration (amount realised or paid, plus any value reduction) — batch into one quarterly bulk declaration where the bank allows.
- For each larger entry, attach full proof: IRM and eBRC mapping, payment advices, extension or reduction requests with evidence.
- Submit, then follow up until the bank confirms each entry closed — keep the confirmations filed against the shipping bill or invoice.
Stuck with open EDPMS entries?
Talk to trad — cleanup, declarations and bank coordination for exporters.
Contact us →Keep reading
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Read the FEMA 2026 guide →Old bills blocking the next shipment?
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Contact us →A note on advice
This playbook is general information, not legal advice. Your AD bank decides on your transaction, documents, and reasons — confirm every transaction-specific position, extension, reduction, or closure with your own AD bank in writing before acting.
Frequently asked questions
How do I close old EDPMS entries?
Sort entries into 4 buckets — paid-but-unmatched, overdue export realisation, unsettled import payments, failed or unadjusted advances — then match each to its proof (IRM/eBRC, import payment advice, advance adjustment). For entries up to Rs 10 lakh per shipping bill, Bill of Entry or service invoice, your AD bank can close on your declaration alone under RBI A.P. (DIR Series) Circular No. 12 dated 1 Oct 2025; larger entries need full evidence.
What is the Rs 10 lakh EDPMS/IDPMS relief?
For EDPMS/IDPMS entries of value equivalent to Rs 10 lakh or less per entry/bill, the AD bank reconciles and closes the entry based on your declaration that the amount was realised (exporter) or paid (importer). Reductions in declared or invoice value are also accepted on declaration. The declarations can be filed quarterly in bulk, combining several bills in one declaration.
Is the Rs 10 lakh limit per year or per remittance?
Neither. It is per entry — one shipping bill, Bill of Entry, or service invoice. A business with fifty Rs 2 lakh bills can use the relief on each qualifying bill; a single Rs 12 lakh bill cannot use it at all.
Does submitting the small-value declaration auto-close the entry?
No. The declaration is your input; the entry stays open until the AD bank processes it and confirms closure in EDPMS/IDPMS. Treat every entry as open until the bank confirms. Declaration is not proof of receipt.
Does receiving export payment auto-close the EDPMS entry?
No. The receipt must be matched to the entry and the AD bank must update or close it after its genuineness check. Part-settlement updates the entry but does not fully close it.
Does paying for an import auto-close the IDPMS entry?
Not necessarily. The payment must be reconciled to the transaction; partial payments or wrong references leave the entry open.
Can unpaid small export bills be written off through this declaration?
Up to Rs 10 lakh per shipping bill or service invoice, Regulation 6 of the FEMA 2026 framework allows reduction including full non-realisation via the declaration process — but the bank must still process the closure. Confirm your transaction-specific position with your AD bank in writing.