RBI waves ED threat to keep exporters in line, foil hedging against rupee

The RBI has often impressed it upon banks that the EDPMS needs to be up to date as the data is required to monitor how fast exporters bring back their export proceeds

In a bid to crack down on hedging against the rupee, the Reserve Bank of India (RBI) has warned exporters that they could be reported to the Enforcement Directorate (ED) if they fail to record their export proceeds with the banks. About 90,000 exporters, comprising a sizeable segment of the community, are at risk from this new rule. 

The central bank has got the data to carry out its threat on the basis of a software it had introduced in 2014. The software, known as Export Data Processing and Monitoring System (EDPMS), is used by banks in their business with