30 September 2012
Earlier Convertible Foreign Exchange were received in India and concerned Bank is requested for FIRC.
Now the scenario has changed. Online Money Transfer is the most economical and fastest one. Further Indian Banks has spread their presence in foreign countries. The remitter now pays to Indian Bank in their country. And Indian Bank converts into INR and transfer the money by RTGS etc.
This results into a receipt of CONVERTED FUNDS in place of CONVERTIBLE FUNDS.
Now the question is as how and from whom to get FIRC or other similar document so that Indian may establish that the receipt is against their Export Sales or Services.
01 October 2012
FIRC - Foreign Inward Remittance Certificate is a proof of receipt funds from abroad through banking channels. Whether the bank received convertible funds (in foreign currency) or converted funds (Indian currency) it has to give the Certificate FIRC. As far as receiver of the funds is concerned there is no difference from him. But many a time it so happens the rate applied abroad is lesser when compared to rate applied in India. In such case, you can request your importer/sender to give instructions to his bank to send the foreign currency without converting into Indian currency at their end. This can be done if he requests his bank not to convert the currency.
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