>But is there any provision for capturing the error and sending it as a file/ mail attachment.
If there is no standard solution to this, please suggest if there is any alternate solution available.
You can write a java class that uses jdom or dom4j parser and validate the xml against xsd first and if there is any error, it will create the exception log and paste it on the first few lines of the xml file and rename the file as filename_error.xml and ftp or email them. You can set cron job in unix box to run this java class at a specified interval of time. All this can be achieved using java programming. This is an alternate approach basically creating custom application. Search google for parsing the xml file as well sending email. You will see plenty of documents.