FIRC

 Foreign Inward Remittance Certificate (FIRC): Meaning, Full Form, How To Download

A Foreign Inward Remittance Certificate (FIRC) is a certificate a bank issues as proof of international payments for exports containing all the remittance details. It acts as documentation of a foreign money transfer. It tracks the transfer amount in foreign currency, rupees, and the transfer source.  

In India, service exporters and sellers must get FIRC when they receive payments from outside India. Exporters must produce the FIRC to various government authorities when they apply for financial assistance and government support or schemes.

Foreign Inward Remittance Certificate (FIRC) meaning

The full form of FIRC is the Foreign Inward Remittance Certificate. A FIRC is a document that serves as proof of inward remittances to India. Thus, when Indian exporters receive payment in foreign currency, the FIRC document will act as proof of the transfer. It’s like a receipt of proof for exporters or businesses that they have received a transfer from outside India.

In India, getting an FIRC is crucial as it helps authorities like the the Customs Department and the DGFT (Directorate General of Foreign Trade) to track all the transactions. Often, foreign funds act as a vehicle for illegal activities, such as money laundering. So, if the authorities question the foreign transaction or look at it suspiciously, an FIRC certificate acts as a guard against such legal hassle.

Foreign Inward Remittance Certificate (FIRC) contents

The FIRC contains the following information:

• Beneficiary’s name
• Name and address of the person who sent the money
• Name of the recipient of the funds
• Name and address of the first bank that processed the foreign transaction
• Demand Draft (DD), Telegraphic Transfer (TT), or cheque number
• The exchange rate applied to the transaction
• The amount denominated in foreign currency and Indian rupees
• The purpose of the remittance, according to the recipient of the money

FIRC requirement

Individual exporters or service providers and businesses receiving international payments in India are required to obtain an FIRC. Below persons are required to get an FIRC in India when they receive payment from the opposite party outside India:

• Goods and service exporters from India 
• Indian service providers who provide service globally 
• Global sellers 
• International merchants
• Export businesses that export from India
• Organizations working remotely within the country for overseas companies 
• Salaried individuals getting compensation in foreign currency
• Freelancers getting compensation in foreign currency
• e-commerce shops with customers paying in foreign currency

FIRC certificate download

The person receiving the payment from outside India is called a beneficiary. When the beneficiary receives money in foreign currency, it will be credited to the beneficiary account through an Authorised Dealer (AD) of the Reserve Bank of India (RBI).

The beneficiary must apply the FIRC request form to the bank. The FIRC request form contains the following information:

• Beneficiary’s name
• Name and address of the payee
• UTR (Unique Transaction Reference) number
• Recipients’ name
• Amount of transfer 
• Purpose of remittance
• Date of transfer
• Account number

Once the beneficiary submits the FIRC request form to the bank, it generates an Inward Remittance Message (IRM) on the Export and Data Monitoring Systems (EDPMS), i.e., the government export portal. The IRM number is the FIRC number. After paying the fees, the bank will issue the FIRC to the beneficiary account. FIRC is also called Advice or Foreign Inward Remittance Advice (FIRA).