What are the core components of IDPMS?

When dealing with IDPMS, you’ll often see specific technical terms in bank emails, import documents, and compliance follow-ups. Understanding these terms helps speed up conversations with your bank and reduces unnecessary back-and-forth.

Bill of Entry

• The Bill of Entry (BoE) is a legal document filed with Customs when imported goods arrive in India.

• It is the primary proof of physical import under IDPMS.

• Banks use the BoE number to confirm that goods have entered the country.

• If the BoE doesn’t reflect in the system, the bank cannot close or regularise the related import payment.

Outward Remittance Message

• An Outward Remittance Message (ORM) is the unique acknowledgement generated by your authorised dealer (AD) bank when it sends foreign currency outside India.

• It acts as the payment proof in IDPMS.

• IDPMS expects this payment proof to match the import proof captured through the Bill of Entry (BoE).

• Any mismatch between the ORM and BoE can trigger follow-ups from the bank.

What are the benefits of IDPMS?

IDPMS is designed to make the import process more transparent and efficient, while ensuring compliance with the rules laid down under the Foreign Exchange Management Act (FEMA).

Integration with Customs :

IDPMS works with the Indian Customs Electronic Data Interchange (EDI) system to enable smooth data sharing between banks and Customs authorities.

Tracking transactions:

Banks and businesses can track import transactions to ensure payments match the goods received.

Report Automation:

IDPMS automates reporting, reducing errors and simplifying the process for everyone involved, while also enabling accurate, timely reporting of import transactions with easy access to required records and data.

Compliance:

IDPMS helps ensure that import transactions comply with RBI rules and supports the detection of unauthorised or suspicious activity.

How does IDPMS compare with EDPMS?

What is ORM in IDPMS?

In IDPMS (Import Data Processing and Monitoring System), ORM stands for Outward Remittance Message.

The main purpose of ORM is to track and manage import payments sent to foreign suppliers, ensuring they follow applicable rules and regulations.

The functionality of ORM includes the following:

• Verifying that payment details match what’s recorded in IDPMS and supporting documents.

• Tracking the payment process end-to-end so that the required documents and compliance steps are followed.

• Supporting reporting to relevant authorities to keep transactions transparent and regulation-aligned.

The benefits of ORM include the following:

• Stronger compliance by ensuring payments are made as per the rules.

• Better efficiency by making payment management and tracking easier.

• Improved transparency by providing clearer visibility into transactions and reducing errors and potential fraud.

What is the use of importing data?

For the Reserve Bank of India (RBI), import data is useful in the following ways:

• Regulating transactions:
  It ensures import payments are made in accordance with the rules; for example, when an Indian company pays overseas for machinery, the payment is checked for regulatory compliance.

• Understanding the economy:
  It helps the RBI understand import volumes and their economic impact. That is, higher electronics imports can influence the trade balance and affect currency demand.

• Policy making:
  Import data helps the RBI shape economic and foreign exchange policies if imports rise sharply, the RBI may take steps to manage the impact.

• Preventing fraud:
  Just by reviewing import data, the RBI can flag unusual or suspicious transactions for example, when a payment is unusually high or doesn’t match the import records, it can be examined for potential misuse.

• Ensuring accurate records:
  Import data helps maintain accurate records of import transactions, supporting correct reporting and easier audits.

• Managing foreign currency:
  Import data helps the RBI monitor foreign exchange demand for imports and manage reserves accordingly, for example, ensuring enough foreign currency is available when companies import essential raw materials.

What are the risks of IDPMS non-compliance?

Ignoring IDPMS mismatches isn’t just about paperwork; it puts your business at risk. If import payments remain unmatched or unresolved, banks have to report them to the regulator, and over time that can make your day-to-day imports harder and slower.

If IDPMS entries are not properly done, you risk the following:

• Regulation
  Transactions can be flagged by the Reserve Bank of India.Unresolved BoE–ORM mismatches beyond allowed timelines can lead to Caution List status.
  Banks may stop issuing non-fund-based facilities, such as Letters of Credit (LCs) and Bank Guarantees (BGs).
  In serious cases, your Import Export Code (IEC) may come under scrutiny or be suspended.

• Operations
  Routine import payments may be delayed, repeatedly queried, or even declined.
  Supply chains can be disrupted if payments do not go through on time.
  Import-dependent production and deliveries can be impacted, affecting customers.

• Financial penalties
  Unresolved entries can attract penalties under foreign exchange regulations.
  Banks may ask for compounding fees to regularise long-pending or mismatched transactions.
  Incorrect or delayed reporting can trigger audits and extra advisory or legal costs.

• Inaccurate records
  Mismatched BoE and ORM entries create discrepancies in your books and compliance records.
  Poor data quality can weaken internal controls and lead to questions from auditors and regulators.

• Fraud and reputation risk
  Weak monitoring of IDPMS entries leaves room for over-invoicing, under-invoicing, or other abusive practices.
  Any investigation or regulatory action can damage your credibility with banks, suppliers, and partners.

What are the common IDPMS issues and how can they be fixed?

Most IDPMS problems are fixable if you act early and coordinate with your bank:

• BoE and ORM mismatch
  The remitted amount doesn’t exactly match the Bill of Entry value due to FX fluctuation, bank charges, discounts, or partial shipments.
  Share a written explanation and supporting documents with your bank. Banks can usually write off small differences (often up to a defined percentage) or adjust entries based on proof.

• Short shipment
  Fewer goods are received than invoiced, or goods are returned to the overseas supplier.
  Provide documents such as a credit note, a short-shipment certificate, or re-import documents so the bank can adjust the BoE value in IDPMS.

• Bill of Entry loss
  The physical BoE is misplaced, or BoE data from a manual port doesn’t appear in the system.
  Request a duplicate BoE from Customs or submit an indemnity bond as per your bank’s process for manual closure.

How Infinity help to maximise profitability?

IDPMS looks after the compliance side of your import payments. But if you’re also getting paid by overseas clients, the way you receive those international payments matters just as much.

Handling cross-border payments shouldn’t feel like running a second company, you need a setup that’s simple, predictable, RBI-compliant, and doesn’t chew up your earnings with high fees or delays.

That’s where Infinity helps. It’s built for Indian businesses and independent professionals who work with global clients, making it easier to receive international payments smoothly and stay compliant with regulations.

Here’s how Infinity makes life easier when you get paid from abroad:

• Low fees
  Save a big chunk of your margin compared to traditional banks and legacy platforms. Infinity charges a simple 0.5% transaction fee, so more of every invoice actually reaches your account.

• Fast transfers
  No more waiting a week for funds to clear. Most payments are processed within 24 hours, so your cash flow doesn’t suffer.

• Fair exchange rates
  Infinity uses 0% FX margin and converts at live FX rates, rather than hiding extra costs in the conversion rate.

• Compliance handled for you
  All the RBI and FEMA paperwork that usually feels intimidating is handled in the background, so your payments stay clean and compliant without you having to chase forms.

• Multi-currency support
  Work with clients worldwide in USD, GBP, EUR, JPY, and more.
  Infinity supports 50+ currencies, so you don’t have to think twice before taking on a new market.

If IDPMS is about making sure your outward payments for imports are clean, a platform like Infinity makes sure your inward payments for exports and services are just as smooth, with low-cost, fast, and compliant from day one.

Conclusion

IDPMS touches almost every import you make from the time the shipment lands in India to the moment your bank closes the payment.
When your Bill of Entry and outward remittance match, everything moves quietly in the background. When they don’t, you’re suddenly dealing with emails from the bank, extra forms, delays, and in serious cases, regulatory trouble.

That’s why it helps to keep your BoE details accurate and to fix mismatches as soon as they appear.
And if you also work with overseas clients, Infinity keeps your international payments fast, compliant, and low-cost so you can focus on the business, not the banking.

With Infinity, you will be ready to grow your business globally without the stress of international banking.
Sign Up today!

Frequently Asked Questions

What is the full form of IDPMS?

IDPMS stands for Import Data Processing and Monitoring System.

What is sent to IDPMS?

Details of import transactions like Bill of Entry information from Customs and outward remittance data from your bank.

What is the difference between Edpms and IDPMS?

EDPMS tracks export proceeds coming into India, while IDPMS tracks import payments going out of India and checks that those payments match the goods imported.

How do I remove my name from the RBI caution list?

You need to submit the pending Bill of Entry details to your AD bank, and once they update and close those entries in IDPMS, they can recommend your removal from the caution list.

Who generates the ORM in IDPMS?

The authorised dealer (AD) bank generates the Outward Remittance Message (ORM) when you send a payment to a foreign supplier.

Can I access IDPMS directly as an importer?

No, importers can’t log in to IDPMS; all updates and follow-ups must be routed through the AD bank.

What happens if BoE is not settled in IDPMS?

Unsettled BoE entries can lead to caution listing, which may block or delay future non-advance import payments.