Hi Sushil,
Instead of looking into network overhead/bandwidth as the most important factor for choosing your design approach, I suggest you also consider Maintainability as one of your key priorities.
This is more of a consultant point of view, but I consider one must look into this aspect for any design solution.
The solution needs to stand the test of time. It should not be unnecessarily complex, if that complexity can be traded for simplicity to change and maintain overtime.
I think one way to arrive at this decision of using CSV vs. XML will be to prototype both solutions and test it for large inputs (ones which you except in your production). Compare the results; if the difference is quite large, you may have your answer. If it isn’t, then I guess, XML should be the way to go.
Hope this helps you arrive at your decision. I think RMG and you covered most of the issues either approach has.
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