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MSME Bodies Recommendations to RBI on Regulations for e-Commerce Exports

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March 17, 2025

Why in the news?

MSME (Micro, Small, and Medium Enterprises) industry bodies are urging the Reserve Bank of India (RBI) to revise its regulations for e-commerce exports.

MSME (Micro, Small, and Medium Enterprises
  • Nodal Ministry – Ministry of Micro Small and Medium Enterprises, founded in 2007.
  • According to the Ministry of MSME, 5.70 crore MSMEs, employing 24.14 crore individuals, are registered on the Udyam Registration Portal and the Udyam Assist Platform (UAP).
  • The classification criteria for MSMEs have been revised in recent budget by raising both investment and turnover thresholds as follows,

Recommendations from MSME industry bodies to RBI

  • Automated Reconciliation System- Develop an AI-powered system within Export Data Processing and Monitoring System to match inward remittances (IRMs) with shipping bills, even when amounts vary due to marketplace fees or refunds.
  • Bulk Transaction Uploads-Enable exporters to upload transactions in bulk, reducing manual processing.
  • Simplified Compliance for Small Exporters- Remove the requirement for CA certificates for MSMEs with an annual turnover of Rs.5 crore or less, replacing it with self-declaration forms.
  • Digital Verification System-Link bank accounts to a digital verification system for seamless tracking and authentication.
  • Digital Dispute Resolution Portal- Establish an online platform to address issues like unfair penalties and delayed processing, ensuring resolution within seven days.
  • Cost Reduction Measures
    • Standardize fees for shipping bill regularization.
    • Introduce a fixed annual reconciliation fee.
    • Limit per-bill charges to Rs 100 for transactions over $1,000.

Export Data Processing and Monitoring System
  • It is a centralized online platform that streamlines and monitors export transactions in India, enhancing transparency and compliance.
  • Developed by - Reserve Bank of India (RBI).
  • Key Features
  • Centralized Monitoring - Tracks exports by linking customs, banks, and stakeholders.
  • Transparency & Compliance - Ensures a unified system for efficient export monitoring.
  • Automated Data Matching - Banks match shipping bills with inward remittances.
  • Real-time Tracking- Enables immediate consignment status updates.
  • Faster Claims Processing - Streamlines export benefit claims.
  • RBI Data Insights - Helps track export remittances and prevent fund diversions.
  • Regulatory Compliance - Manages export quotas, licenses, and trade regulations.
  • System Integration - Connects with banking, customs, and logistics platforms.

Reference

Business Standard | MSME industry bodies on e-commerce exports
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