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FIRC (Foreign Inward Remittance Certificate)

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What is FIRC (Foreign Inward Remittance Certificate)? and what is the procedute to get it?

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62 Replies

Subodh ( ) (402 Points)
Replied 25 August 2008

When any foreign exchange (currency) comes to your bank account Bank wants confirmation from your side as per RBI rule i.e.-what is the purpose of this remittance means how and why got this money? Then You have to submit the purpose/amount/ bank account etc. to the bank.This is the procedure of giving disposal instruciton of remittance after this document you can ask to get FIRC.Hope your query is solved now?

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P.N.Srivatsa (Working) (29 Points)
Replied 15 September 2008

When you receive funds from out of India , these will be credited to your account in Indian currency. Your banker will arrange for a certificate (FIRC) which contains the following details : original currency / equivalent indian currency / transferor bank etc., As a procedure, this Certificate will come to the address of the account holder. In case if you dont receive, you can contact the banker ( concerned executive who looks after RBI ) related works, for this.

In some cases this is required to file with R.B.I and hence it is the duty of the Banker ( Authorised Dealer) to arrange for this Certificate. It comes normally within a perid of 15 days from the date of credit of funds to your accoount.

Best Regards

CA PNS

(Guest)

Originally posted by :P.N.Srivatsa
"	When you receive funds from out of India , these will be credited to your account in Indian currency. Your banker will arrange for a certificate (FIRC) which contains the following details : original currency / equivalent indian currency / transferor bank etc., As a procedure, this Certificate will come to the address of the account holder. In case if you dont receive, you can contact the banker ( concerned executive who looks after RBI ) related works, for this. In some cases this is required to file with R.B.I and hence it is the duty of the Banker ( Authorised Dealer) to arrange for this Certificate. It comes normally within a perid of 15 days from the date of credit of funds to your accoount. Best Regards CA PNS	"

Dear Sir,

FIRC is requirementb of bank to certify realisation against export proceeds. FIRC is required when you need a BRC from a Bank and realisation is wiith other bank.

Through this process of certification both banks have cleared the foreign currency account in their books.

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(Guest)

it also solves the problem of money laundering as it citeout the source of the fund and it can be track down easily.

(Guest)

Hi,

We are exporting goods to outside india and our payments terms after 90 days of the invoice and it is pay to directly our bank account through swift Code and IBAN no from our customers. it is neccassary to used FIRC.

Thanks and regards

Manoj Bihani

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mehul (abc) (31 Points)
Replied 11 April 2009

My sister lives in USA and i need to transfer 50000$ from her as a loan for 5 years to invest in my business.

Is there any way to bring that money in to my account in india?

Will it be consider taxable as a gift or as a loan?

Do i need to Get FIRC from bank and/or Do i need to do some agreement paperwork with my sister?

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Yuvaraj (Commercial trainee) (22 Points)
Replied 18 August 2009

Hi...

whats the process of FIRC??? why bank need Shipping bill copy & BL for issuing FIRC??

Is there any rule to bank to collect Shipping bill & BL from the supplier? if is it Yes, why?

Is there any time bound to submit Shipping Bill to the bank once the export made??

Awaiting for ur replies!!!

P.N.Srivatsa (Working) (29 Points)
Replied 19 August 2009

Hi Yuvraj

there are various instances on which you can receive funds into your bank account. You need not submit any documents for FIRC. From your message, it seems you have received funds against exports.You can intimate the purpose of receiving funds. They will mention this in your FIRC . If you arrange the shipping bill and BL, they will mention these details in the FIRC. But still it isnot mandatory.

you need to submit the copy of FIRC / shipping bill/ BL to the banker addressing to RBI who will submit these details to the regional RBI and will provide you the acknowledgement. I have no idea regarding the time limit. Please check this with your banker. May be it is quarterly once.

best regards

CAPNS

(Guest)

No need to submit Shipping Bill or BL with request of FIRC. you can request to bank for issuance FIRC with reason for receipt of FC. As per RBI Guideline there are a time limit for submit these documents to Bank this is 180 days in case of Ship and 21 days in case of AIR.

Is there any rule to bank to collect Shipping bill & BL from the supplier? if is it Yes, why?

There are many other activities to received Foreign Currency. So any receipt of Foreign Currency Bank need to certify the reason of recipt. BL & Shipping Bill is the proof of Export proceeds. By submitting these documents only you can justify the receipt of Foreign Receipt which is againt the export. From this step The RBI can prevent the illeagal FC also. For more details ypu can refer to the site of JDGFT.

>>Rajesh

sidharth bajaj (partner) (62 Points)
Replied 03 October 2009

Hi,

I am a software developer with clients abroad. I have been getting dollar remittances for a while now. Recently for a remittance i was a sent a FIRC certificate by my bank which i have never been sent before for earlier remittances.

Am i to submit this with RBI or something ? I have invoices for each amount, but no shipping bill ofocourse.

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sidharth bajaj (partner) (62 Points)
Replied 04 October 2009

Rajesh,

Do exporters of services (i provide software services to clients abraod) have to submit the FIRC certificate to RBI as well ? I dont ship any goods, olny provide software related srevices online.

Thanks in advance for replying.

regards

sidharth

(Guest)

Originally posted by :sidharth bajaj
"	Rajesh, Do exporters of services (i provide software services to clients abraod) have to submit the FIRC certificate to RBI as well ? I dont ship any goods, olny provide software related srevices online. Thanks in advance for replying. regards sidharth	"

FIRC is only a certificate which is issued by bank to certified the receipt of FC. It doesn't meant that if you get the FIRC your export procedure is over. Now you have to submitt the FIRC with your bank (in which you have submitt your export bill) along with the documents required and ask them to clear the GR. After clearance of GR you can take BRC for that. After getting BRC your export procedure will be completed.

>> Rajesh