Foreign inward remittance certificate (FIRC) for international transfers to India – All you need to know
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It’s easier now than ever for sellers in India to do global business. More and more sellers and exporters today provide their services to clients outside India and accept foreign payments digitally. If you’re one of them, you will soon find the need to apply for a document called Foreign Inward Remittance Certificate (FIRC). What is its relevance and how can you apply for it? We’re here to make it simple for you.
What is FIRC?
Foreign Inward Remittance Certificate (FIRC) is a document that serves as proof of an inward remittance, that is, a money transfer sent to India from abroad. If you have received a foreign currency payment in India, you can get an e-FIRC certificate or credit advice as official evidence of that payment.
An e-FIRC can be issued only by AD Category-I banks (Authorised Dealer banks) that are authorised to process such transactions under the law.
Why is it needed?
The Reserve Bank of India (RBI), India’s central bank and regulatory body, runs a tight ship and monitors all foreign remittances flowing into India. AD banks are required to report such remittances via FIRC to the RBI’s Export Data Processing and Monitoring System (EDPMS). Thus, all Indian sellers, vendors and exporters accepting foreign payments are required to procure an e-FIRC.
Not only does it act as proof of payment, but it also contains all the essential details of the transaction such as the beneficiary’s name and account number, amount paid and the purpose of payment. Moreover, an FIRC entitles you to certain benefits and can help you save on service tax, as service tax is not levied on certain services provided outside India.
How to apply for e-FIRC?
Once you’ve received an international payment in your account in India, you can apply for a credit advice by writing to one of our partner banks listed below. Then submit the advice to your bank to procure the original e-FIRC.
Bear in mind that Instarem does not support payments made towards Foreign Direct Investment (FDI) or Foreign Institutional Investment (FII) in India. Our partner banks cannot provide a certificate for transactions that fall under these categories.
For other foreign transfers, here’s how you can apply for a credit advice:
- For transfers received via HDFC Bank
- For transfers received via Yes Bank
For transfers received via HDFC Bank
HDFC Bank can issue an advice if you have an HDFC bank account. For non-HDFC accounts, please contact your bank directly.
Email format
Please send a request in this email format.
Don’t forget to mention the following details:
- Unique Transaction Reference number (UTR)
- Customer name
- Account number
- Amount of remittance
- Date and purpose of the payment (purpose of payment to match with the purpose shared at the time of remittance)
- The postal address you want the advice to be delivered to
HDFC Bank contact details
Send your request letter to the following address:
HDFC Bank – Vostro CMS Team
Lodha – I Think Techno Campus, Office Floor 3,
Opp: Crompton Greaves limited,
Next to Kanjurmarg Railway Station,
Kanjurmarg East,
Mumbai – 400042.
If you have any advice-related queries, write to [email protected] or [email protected]
Fees
HDFC Bank charges a nominal fee for issuing the advice.
- If the transfer is less than a year old: INR 236 per transfer
- If the transfer is more than a year old: INR 590 per transfer
Pay the fee through NEFT/IMPS to the following bank account:
Account number: 04990920001489
Account name: CMS DISB VOSTRO REMIT SUSPENSE A/C
IFSC code: HDFC0000240
Alternatively, HDFC Bank customers can mention their account number and the amount to be debited for advice issuance from their account in the request letter (letter to be signed by the authorised signatory).
Turnaround time to process the advice
- If the transfer is less than a year old: 5 working days
- If the transfer is more than a year old: 10 working days
This does not include the time taken to ship the documents.
For transfers received via Yes Bank
Yes Bank can issue a Credit Advice if the foreign transfer was received via Yes Bank.
Email format
Please send a request in this email format.
Don’t forget to mention the following details:
- Unique Transaction Reference number (UTR)
- Customer name (original remitter name through Instarem)
- Account number
- Amount of remittance
- DatePurpose of the payment (Purpose of the payment needs to match the purpose the sender has entered)
- The postal address you want the certificate to be delivered to
A hard copy of the request letter along with the Demand Draft is necessary for the request to be processed. In case there’s a delay with your advice application, please re-check and ensure you have provided all necessary details.
Yes Bank contact details
Send your request letter to the following address:
Attention: Mumbai Inward Remittance Team
YES Bank Limited, 5th Floor,
Indiabulls Finance Centre, Tower – 2,
Senapati Bapat Marg, Elphinstone Road,
Mumbai – 400013
For information regarding the progress of your request you can write to [email protected].
Turnaround time to process the advice
10 working days (maximum time)
This does not include the time taken to ship the documents.
Please note: Processing of the request will start once all the relevant documents have been received by Yes Bank (correctly filled request letter and Demand Draft).
Fees
Yes Bank charges a nominal fee for issuing the Credit Advice:
INR 590 (includes 18% tax) per transaction, per remittance.
The fee needs to be paid via Demand Draft favouring “YES Bank Ltd, payable Mumbai” and posted along with the request letter. You may refer to the sample email format.
Alternatively, you can pay the fee through NEFT to the following bank account:
Account number: 105051718
Account name: Yes Bank Ltd
IFSC code: YESB0000001
An easy, speedy solution to receive international business payments
If you are a business owner, you can set up a global collection account with Instarem and receive international payments in five foreign currencies (USD, EUR, GBP, SGD, and HKD). The payments are auto-converted to INR and sent to your registered bank account. It’s quick, easy and secure, and with Instarem’s great FX rates and low fees you can be sure to save on conversion costs.
