Textile exporters fear their names might figure in the Reserve Bank of India's (RBI's) caution list after April 20, 2017, deadline for updating shipping bills by banks. They have urged the banking sector regulator to remove the names of companies with a good track record as it would prevent them from exporting.

The Cotton Textiles Export Promotion Council (Texprocil), has requested an update in the centralised banking system before making the caution list for pending shipping bills public. The EDPMS (Export Data Processing and Monitoring System), which was introduced by the RBI to monitor payments against export bills, requires all banks to report in this system details of the export proceeds realisation pertaining to the shipping bills which was filed after February 28, 2014.

Ujwal Lahoti, Chairman, Texprocil has said a lot of shipping bills against which payments have already been realised and the electronic bank realisation certificates (e-BRCs) have been issued by the concerned banks. But EDPMS is yet to be updated by the banks. For no fault probably many textiles exporters will find their names appearing in the caution list after April 20, 2017. Texprocil has taken up this matter with RBI and some decision is expected.

From March 1, 2014, to March 1, 2016, RBI granted temporary exemption up to April 20, 2017, to exporters whose importer-exporter code (IECs) were appearing in the caution list in the EDPMS and whose outstanding shipping bills were less than 30 per cent of the total value of shipping bills for the period. Exporter’s name may appear in the caution list on EDPMS after April 20, 2017, based on the latest position of outstanding export receivables. Thus, exporters would face severe hardships in dispatching consignments abroad once their name appears in RBI's caution list.