EDPMS entry not closed? Why, and what your bank needs

Key points

Only the AD bank closes an EDPMS entry, by reporting realisation, an approved reduction, a write-off or another outcome against the Shipping Bill.
Start from the bank's outstanding list for your IEC and compare it, bill by bill, with your own register.
Most entries that stay open after payment are a receipt not linked to the bill, the wrong AD code, a short receipt or an unadjusted advance.
Under RBI's circular of 1 October 2025, banks may close entries of up to ₹10 lakh per bill on your declaration, sent quarterly in one letter.
Anything that will not be paid in time needs an extension or a write-off request before the due date, not after it.

Start with the bank's list

You cannot see EDPMS yourself, so begin with the list of outstanding Shipping Bills the AD bank holds for your IEC. Most banks send it on request or show it on their trade portal. Put it beside your own register and compare each bill: number, date and port, invoice value and currency, what you have received against it and the reference of each receipt.

Every bill the bank shows as open falls into one of two groups. Either the money has not arrived, and the task is to chase the buyer or ask for more time, or it has arrived and the bank has not been given what it needs to report it. The second group is the one this guide is about, and it is usually the larger.

The usual reasons, and what to send

What happened	What the bank needs
The receipt was never linked to the bill. The buyer paid without quoting the Shipping Bill or invoice, so the bank credited the money and parked it.	A letter listing each receipt (the bank's reference, date, amount and currency) and the Shipping Bills it settles, with the amount against each, and the invoices.
The Shipping Bill names another AD code. The entry sits with the bank named on the bill, not the bank that received the money.	A request to the bank named on the Shipping Bill to transfer the entry to the bank that realised it, with the bill and the receipt details. Ask both banks what each wants.
Less arrived than was invoiced. A discount, a quality claim or charges deducted abroad.	A request to reduce the invoice value, with the credit note, the buyer's correspondence or the foreign bank's charges advice. Small differences are often accepted on a declaration.
An export advance was never adjusted. The buyer paid in advance (purpose code P0103) and the advance was not set against the bill after shipment.	A letter asking the bank to adjust the advance, quoting its reference, against the Shipping Bill.
A third party paid, or the currency differs from the invoice.	An explanation with the buyer's letter or the agreement that names the payer, for the bank to accept under its policy.
The receivable was set off against a payable to the same overseas party.	The bank's approval of the set-off, with the Shipping Bill and the Bill of Entry or invoice on the other side.
The goods came back or the shipment was cancelled.	The Bill of Entry for the re-import, or the customs cancellation, so the bank can close the entry without a realisation.
The particulars do not match: a mistyped bill number, date or port.	A correction request with a copy of the Shipping Bill.

The ₹10 lakh declaration route

RBI's circular of 1 October 2025 on reconciling EDPMS and IDPMS entries lets AD banks close entries of up to ₹10 lakh per Shipping Bill on the exporter's declaration that the amount has been realised, without the usual documents. A reduction in the value of such a bill can be accepted on a declaration too, and the declarations may be sent once a quarter, covering many bills in one letter, so the bank can close them in bulk. The same circular told banks not to levy penal charges for delays.

If you have many small bills open, ask your bank whether it takes the quarterly declaration and in what format. It is the quickest way to clear a long tail of entries that were paid long ago.

Writing the request

One letter per bank works best. Table every Shipping Bill it covers with the three references a bank places a record by: the Shipping Bill (number, date, port), the bank's reference for each receipt, and your own invoice number, then the invoice value, the amount realised, any difference and its reason. Enclose what the table above asks for, and keep the bank's acknowledgement.

Send it as soon as a receipt arrives, not when the bank writes. A receipt the bank has to investigate months later is far harder to place than one it can link the week it arrives.

When the money will not come in time

From 1 October 2026 export proceeds are due within nine months of the date of export, twelve when invoiced in rupees. If the buyer will pay later, ask the bank for an extension before the due date, with reasons and evidence of your follow-up. If part will never be paid, ask about a write-off within the limits RBI allows, and expect to give up any export incentive claimed on the unrealised part. Entries left unexplained past their date lead to bank follow-up and, if they persist, to the caution list, after which new shipments need an advance or a letter of credit.

FxLayer's EDPMS / IDPMS check reads the bank's outstanding list, sorts each bill into close at the bank, follow up the money, not in your records and not on the bank's list, and writes the closure, transfer, extension and declaration letters from the records.

Questions

Usually because the bank never linked the receipt to the bill: the payment did not quote the Shipping Bill or invoice. Send the bank the receipt's reference and the bills it settles. The other common causes are a Shipping Bill filed under another bank's AD code and a short receipt with no approved reduction.

No. Only the AD bank closes it, by reporting the realisation or an approved reduction, write-off or other outcome. Your part is to give the bank the documents or the declaration it needs.

Under RBI's circular of 1 October 2025, banks may close EDPMS entries of up to ₹10 lakh per Shipping Bill on the exporter's declaration that the money was realised, accept a reduction in value on a declaration, and take the declarations quarterly in one letter.

Not at once, but entries left open and unexplained past their due date lead to bank follow-up and can put the exporter on RBI's caution list, after which banks handle new shipments only against an advance or a letter of credit.

Sources

This article is general information on Indian foreign exchange and tax rules as they stood on the date shown. It is not legal or tax advice. Rules and limits change; confirm the current position with your AD bank, the relevant RBI Master Direction or your adviser before acting.

EDPMS entry not closed: the usual reasons, and what the bank needs to close it