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Who can issue firc

chintan (CMA,CA Final,LLB,B.com) (135 Points)

05 December 2011

Deucthe bank is remitting funds from germany to deucthe bank india and deucthe ba nk india is remitting the funds to the customer having accoun t at IDBI bank ltd through RTGS /NEFT. However deuche bank is issuing a letter to IDBI bank confirming that this is a foreign inward remittance for IDBI bank 's customer (name is also mentioned), we want to understand as in this case who can issue FIRC, . Can IDBI issue FIRC or deuchte bank can only issue FIRC .

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4 Replies

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 05 December 2011

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.

for more infrmation link is:

https://www.rbi.org.in/scriptts/ECMUserView.aspx?Id=32&CatID=10#partb

Best Regards

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chintan (CMA,CA Final,LLB,B.com) (135 Points)
Replied 06 December 2011

Thanks Sir

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 06 December 2011

if you have any query regarding this subject ask, i assist you.

Akshay Shah (Practising Chartered Accountant) (29 Points)
Replied 27 December 2011

Hello sir,

I have one query relating to issue of shares to NRI. The query is as below,

Facts of the case:

My client, a newly corporated private limited company has received remittance from one NRI for investment of shares of the Company.

The said NRI has paid money from his NRE account with Axis Bank in INR currency and the Company's banker is State Bank of India who has received the fund.
Now as per the requirement of the RBI & FEMA, The company shall inform to Regional office of RBI through Ad 1 category bank about receipt of remittance from NRI within 30 days from the receipt of the fund with FIRC which is provided by the Bank who receives the fund.

Now issue is the banker of the Company, SBI, the banker of the Company is denied to issue FIRC as it has received fund in indian currency only, not in foreign currency. Due to this problem, I cant intimate RBI as a copy of FIRC is required to be attached with form to intimate to RBI as one of the requirement.

So pls reply what should further i do to intimate RBI?

Will i get FIRC from the banker of remitter of the fund as first, it has received fund from NRI and then made a payment to the Company??

Pls reply on my query asap..
For more details, you can mail me - fcaakshayshah @ gmail.com

I would appriciate your prompt reply.