Foreign Inward Remittance Certificate (FIRC) is a key term for anyone in India receiving payments from abroad,&nbsp; be it exporters shipping goods overseas or freelancers offering services to international clients. 

FIRC full form is Foreign Inward Remittance Certificate, and it serves as an official proof that money has been remitted into India from a foreign sourceskydo.com. In simpler terms, a FIRC is a document issued by an Indian bank to verify and record details of an incoming foreign payment – including the sender, recipient, amount, and purpose of the transactiondbs.com. 

This certificate is crucial in the Indian context as it ensures your foreign earnings are transparent, properly documented, and compliant with regulations. In this guide, we’ll explain what FIRC means, why it’s important, how it works under RBI rules, and how Indian businesses or freelancers can obtain and use FIRC effectively.

FIRC stands for Foreign Inward Remittance Certificate, and as the name suggests, it is a certificate provided by banks in India to verify a foreign currency remittance received in the country. The FIRC contains important information such as the amount received, the foreign sender’s and Indian recipient’s details, and the reason for the payment. Essentially, it’s a tangible proof of an inward remittance – functioning as a testimonial that an individual or business in India has received a payment from abroad.&nbsp;

FIRCs have historically been issued by Authorized Dealer (AD) banks whenever an export payment or any foreign inward payment came in. For example, if an exporter in Mumbai sells goods to a buyer in Europe and receives the payment in USD into her Indian bank account, the bank would issue a FIRC confirming that the foreign payment was received. This document legitimizes the transaction and is often required by various authorities for reference. Only banks licensed as Authorised Dealer Category I by the Reserve Bank of India (RBI) can issue FIRCs, since they are the ones permitted to handle foreign exchange transactions in India.&nbsp;

It’s important to note that “FIRC” is sometimes used informally to refer to similar documents like Foreign Inward Remittance Advice (FIRA) or Foreign Inward Remittance Statement (FIRS). We will discuss these terms later, but broadly speaking, all of them serve a similar purpose: proving that a foreign remittance was received. In summary, a FIRC (Foreign Inward Remittance Certificate) is the official proof of foreign money coming into India, making it an indispensable document for cross-border payments.

Whether you are an Indian exporter, a service provider, or a freelancer, obtaining a FIRC (or its equivalent advice) for your foreign earnings is very important. Here are the key reasons why FIRCs matter:

In summary, the FIRC is more than just a piece of paper – it is essential for compliance, for availing financial benefits, and for maintaining clean financial records of foreign income.&nbsp;Especially in India’s tightly regulated foreign exchange environment, this certificate (or its modern digital equivalent) becomes a cornerstone for anyone dealing with international payments.

FIRC in India: RBI Guidelines and the Switch to FIRA

It’s important to understand how FIRCs are handled in India today, because there have been regulatory changes in the past decade. Historically, banks issued a physical FIRC on security paper for every foreign inward remittance received against exports. However, since 2016, the RBI changed the process for most cases. Let’s break down what that means:

In conversations around FIRC, there are a few more terms that get frequently mentioned, one of them being eFIRC. So what exactly is <a href="https://www.skydo.com/blog/efirc-firc-brc-essentials-differences">eFIRC?</a>

Two acronyms often discussed together are FIRC and BRC. They are related but not the same thing. We’ve explained FIRC (proof of receiving foreign payment). BRC stands for Bank Realisation Certificate. Here’s how they differ and how they work together, especially for exporters:

In summary, BRC is the second step in the documentation chain for exports: first get your FIRC/FIRA (proof of payment), then that leads to a BRC (proof that payment matches an export transaction). Both are important for exporters, but they serve different (complementary) purposes.&nbsp; This decison tree will help you decide if and when will you need FIRC/BRC

This is a sample FIRC document. All crucial remittance details have been masked for security purposes. Now let’s break the content of a FIRC down: 

How to Obtain a FIRC (Procedure to Get the Certificate)

Obtaining a FIRC or the equivalent remittance certificate is not an automatic process in many banks – often, you need to request it. Here’s a step-by-step on how Indian businesses or freelancers can get their FIRC/FIRA from the bank:

<a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online">Getting a FIRC</a> might sound like a hassle, but with Skydo, it's a breeze. Our fully automated payment system along with built-in partnerships with banks, ensures effortless compliance with RBI guidelines, without needing any manual intervention.

When you receive an export payment through Skydo, we automatically generate the required FIRC for you at no extra cost. Just log into our user-friendly dashboard, and you'll find your FIRC ready to download, complete with all the details you need. 

Exporting goods and services is considered Zero-Rated Supply, meaning it is subject to 0% GST. However, to claim a GST refund for the input tax credit, exporters must provide the required documents including FIRC. These documents authenticate that the business is claiming a refund because it exported services and couldn't offset its input tax credit as it would in normal domestic business. Without FIRC, claiming a GST refund may not be possible

As we surge in cross-border transactions, ensuring compliance and safeguarding against illicit activities has become a pressing concern. However, at Skydo, we believe your focus should be on advancing your business, not on grappling with compliance challenges.

With Skydo, enjoy seamless international payments, delivered promptly and without any hidden fees. But that's just the beginning! Every time you receive a cross-border payment, an auto-generated FIRC is readily available for you to download, relieving you of compliance burdens so you can devote your energy to what truly matters: driving your business forward.

What is FIRC? Learn the full form, meaning, and how Indian exporters & freelancers can get FIRC or FIRA to claim tax benefits and stay RBI-compliant.

FIRC Full Form, Meaning & Guide for Exporters

Dive into the world of FIRC. Explore the full form, importance, and process of obtaining FIRC for your international transactions

Foreign Inward Remittance Certificate (FIRC): Full form, meaning and RBI guidelines

Prashanth

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Prashanth Kumar

International receipts involve extra steps and rules. You must pick a suitable channel, share the right details (account number/Swift code or invoice link), and follow RBI/FEMA regulations (purpose codes, FIRC). 

Below, we’ll compare each method and highlight Skydo: an RBI-approved fintech among others- so you can choose the fastest, cheapest, and most compliant option.

Using your Indian bank account’s <a href="https://www.skydo.com/swift-code-finder">SWIFT/BIC code </a>is the traditional way. You share your account number and SWIFT code with the sender. The sender’s bank uses the SWIFT network to move funds to your account.

Remittance Services (Western Union, Wise P2P, etc.)

These are money-transfer services primarily for personal or casual transfers.

Online Payment Gateways (PayPal, Stripe, etc.)

Gateways let clients pay invoices or buy products online. You simply send a PayPal invoice or use Stripe’s checkout links.

Virtual Multicurrency Accounts (Skydo, Payoneer, Wise Business)

This modern method gives you real bank accounts in foreign countries. When a client in the US/EU/UK pays you in local currency, it lands in that virtual account; the fintech then converts and remits INR to you.

Each option suits different needs: banks for large safety, gateways for integration, remittance for convenience, and virtual accounts for cost/efficiency.

RBI Compliance: Purpose Codes &amp; FIRC/FIRA

All foreign receipts must comply with RBI rules under FEMA. Two key requirements are:

Complying with these requirements is as important as choosing the right transfer method,

Skydo stands out as an India-made solution focused on receiving (inbound) payments:

In short, Skydo simplifies compliance and slashes costs on each invoice. It’s ideal for freelancers and exporters who want full payment, zero surprises

How to receive international payment in India

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As an Indian importer or international trader, you may have occasionally spotted the mysterious purpose code "1501" on your bank statement. Purpose code 1501 primarily deals with refunds and rebates associated with imports. In this blog post, we will discuss this purpose of code, explain its importance and look at a few common scenarios where code P1501 is used.

Before we dive into the details of purpose code 1501, here's a brief snapshot of Purpose Code 1501:

With the Reserve Bank of India (RBI) releasing its <a href="https://kpmg.com/us/en/taxnewsflash/news/2025/04/india-revised-draft-export-import-regulations.html">revised draft </a>of the 'Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2025' on April 4, it’s crucial for businesses to stay informed about these changes to ensure ongoing compliance and avoid surprises down the line."

Purpose Code 1501 in India specifically denotes transactions related to refunds or rebates received on account of imports. This code signifies that you've received money back from foreign entities associated with goods or services previously imported into India.&nbsp;For example, imagine you run a business in India that imports electronic components from China, assembles them locally, and sells the final product. If one of the components you imported turns out to be faulty and you file a complaint, the supplier may issue a refund for the defective part. This refund would need to be categorized under Purpose Code P1501.

Why is Understanding Purpose Code 1501 Important?

Note that the purpose code 1501 is used specifically for inward remittances (receiving refunds) related to imports. For outward remittance, i.e for sending refund abroad, purpose code S1501 is used.

Claiming Import Duty Refund Using Purpose Code 1501

Imagine you're an importer in India and you've just received a shipment of goods from overseas. Let's say you paid some import duty on these items. Now, for some reason, maybe a few items were damaged, or you were overcharged, you're due a refund on that duty. Here's a simplified look at how that refund might come back to you and where Purpose Code P1501 plays a role:

So, in simple terms, if you get an import duty refund that comes from a company or entity outside of India, your bank will use Purpose Code P1501 to categorize this money coming into your account. It's like a special tag that helps everyone understand the reason for the transaction.

How to Select the Right Purpose Code for Your Transaction?

Choosing the correct purpose code is crucial to ensure smooth and compliant transactions, especially when dealing with international payments. If you're receiving funds from abroad related to imports, such as refunds, rebates, or adjustments, Purpose Code 1501 should be used.

Before finalizing any transaction, carefully review the nature of the payment to confirm it accurately reflects the purpose of the funds. For instance, if the payment is not related to an import-related refund or rebate (e.g., a personal remittance from abroad), a different purpose code would be applicable.

To avoid discrepancies or delays, ensure you have all the necessary documentation to support the use of Purpose Code 1501. This may include:

If you're uncertain about the appropriate purpose code for your transaction, consult your bank or a financial expert. Using the wrong code can lead to delays in processing, scrutiny from regulatory authorities, and even potential penalties.

By carefully selecting the correct purpose code, you can ensure smooth and compliant transactions while maintaining accurate financial records.

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Most new exporters find the trade paperwork overwhelming. There are numerous documents involved and, without experience, it’s easy to feel lost in a spiral of confusion. If you’re in a similar situation, don’t worry, you’re in the right place. Among the various export documents, the proforma invoice is one of the most frequently used worldwide. Is it the same as a regular commercial invoice? Not exactly. It plays a different role in international trade.

In this guide, we’ll cut through the confusion and explain what a proforma invoice is, why it’s used, and how to create one. We’ll also highlight its format with examples and templates, especially from an exporter’s perspective, and answer some common questions. Let’s dive in!

A proforma invoice is essentially a preliminary invoice or quotation in an invoice format provided to a buyer before a sale is finalised. In other words, it’s a document that outlines the estimated details of a transaction,&nbsp; including goods, quantities, prices, delivery terms, etc., before the actual goods are shipped and before any payment is due. This helps both the exporter (seller) and the buyer agree on the terms in advance. Unlike a standard commercial invoice (which is issued after the goods are delivered and is used for payment and customs), a proforma invoice is not legally binding and does not demand payment. Think of it as a good-faith estimate or a formal quote rather than a finalised bill.

In practice, a proforma invoice serves as a negotiation tool and a blueprint for the sale. It defines key transaction details upfront so that both parties share a mutual understanding before proceeding. For example, it will typically include item descriptions, quantities, prices, weight/dimensions of shipments, freight charges, expected timelines, and terms like Incoterms and payment method. By providing all this information early, the proforma invoice helps streamline the sales process and avoid back-and-forth confusion.

Scenario: Imagine a textile exporter in India who receives a bulk inquiry for 1,000 meters of silk fabric from an overseas buyer. The exporter is eager to close the deal but isn’t sure about the exact shipping costs or applicable customs duties yet. In this case, they would issue a proforma invoice to the buyer listing the fabric cost, an estimated shipping cost to the buyer’s country, potential customs or import duties, and any other fees. This estimated invoice gives the buyer a clear picture of the total cost breakdown. The buyer can then review this proforma invoice and use it to negotiate if needed, make an informed decision, arrange for import permits or a letter of credit, and even begin setting up financing. All of this happens before any actual shipment or payment.

In summary, a proforma invoice outlines the agreement in principle. It’s “pro forma” (Latin for “for the sake of form”) – basically a document provided as a courtesy to ensure everyone is on the same page. It must later be followed by a commercial invoice (the final bill for payment) once the goods or services are delivered.

Exporters and international businesses use proforma invoices for a variety of strategic reasons. If you’re wondering when or why you might issue a proforma invoice instead of a simple quote or waiting for the final invoice, here are the most common reasons:

In short, proforma invoices are a versatile tool – they build trust, help with administrative processes, and reduce misunderstandings. Many experienced traders will say it’s better to issue a proforma invoice upfront, even when not asked, especially for first-time or high-value international customers, to make sure everything is agreed in writing.

Proforma Invoice Format &amp; Key Components

Now, let’s talk about the format of a proforma invoice – what does it look like and what information should it contain? In most respects, a proforma invoice’s layout is very similar to a standard commercial invoice, with the crucial difference that it’s labelled “Proforma” and is issued before the sale is final. Your proforma invoice should include all details the buyer (and authorities) need to understand the offer. Here are the key components to include in a proforma invoice format for export:

Here are two sample proforma invoices to give you an idea about the presentation of the above details:

(The above image is a sample for illustration; proforma invoices can vary in design but should contain all the essential components listed.)

You can design your own proforma invoice in Word/Excel or use an export documentation software. What matters most is that all the necessary information is presented clearly and truthfully, as this document will set the expectations for the entire transaction. Remember, any changes after issuing the proforma invoice should be communicated and agreed upon; ideally, a revised proforma would be issued if significant terms change. Once the buyer agrees to the proforma invoice, you’re ready to move ahead – produce the goods, arrange shipment, and later issue the formal commercial invoice matching the agreed terms.

Is Proforma Invoice Required For Indian Exporters?

A proforma invoice is not legally compulsory for Indian exporters, but it has become an essential document in the export sales process. For you as an exporter, a proforma invoice acts as a preliminary document that confirms the importer's order and provides a detailed breakdown of shipment costs. It also becomes a foundational document that you can use to prepare the final commercial invoice.

From an importer's point of view, the proforma invoice gives them detailed information on the goods they will receive. It specifies the item quantity, price, and other relevant transaction information. This ensures transparency and mutual understanding between you and the importer before any goods are shipped.

The other significant advantage of a proforma invoice is its ability to establish payment arrangements. You can use it to set up letters of credit or to secure trade financing.

In summary, while the law does not mandate a proforma invoice, it is a good practice to follow. It provides a detailed, preliminary account&nbsp;of the transaction, builds trust and transparency with the buyer, and reduces financial risks.

How to Create a Proforma Invoice (Step-by-Step)

Creating a proforma invoice is straightforward if you follow a checklist. Think of it as preparing a formal quote that mirrors the structure of a final invoice but is issued before the sale is finalised.

Here’s a simple step-by-step guide to create your own proforma invoice:

One more thing: Once a proforma invoice is accepted by the buyer, avoid making changes unless absolutely necessary, and if you do, inform the buyer and issue an updated proforma. Consistency and honesty on the proforma build trust – the buyer will plan based on that document (e.g., arrange financing and import paperwork). In fact, changes to a proforma invoice shouldn’t be made without the buyer’s consent, because it’s considered a gentleman’s agreement. So treat your proforma invoice with almost the same care as a final invoice.

Receive Seamless Export Payments With Skydo

A proforma invoice can’t get you paid on its own – it’s not a payment demand or a legally enforceable invoice. It’s a step toward closing the deal. But after your buyer agrees to the proforma and you ship the goods, you’ll move to the commercial invoice and payment phase. This is where having a reliable invoicing and payment platform becomes crucial. Skydo offers exporters like you a comprehensive solution to manage invoices and collect payments globally with ease.

How can Skydo help you? Here’s what our platform enables you to do:

&nbsp;Ready to revolutionise your export invoicing and payments? Sign up for Skydo today and take your business global with confidence!

Proforma Invoice: Meaning, Format And Template

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What is FIRA (and how the terminology evolved)

In banking, FIRA is your AD bank’s written confirmation that foreign currency was received against your export of goods/services. Many branches still use “FIRA/FIRC” interchangeably, which causes confusion—the function for exports is FIRA.

Freelancers &amp; agencies (service exporters)

If you offer services to overseas clients—IT/engineering, design, content, marketing, consulting—every inward foreign payment should be backed by a FIRA. It proves the income is export revenue, not a personal transfer, and supports GST refunds and audits.

If you are working for an international company and getting paid directly from them in foreign currency, you would need FIRA.&nbsp;

For global subscriptions or license sales, FIRA underpins revenue recognition and audit trails (monthly or one-off). Course creators and other digital products fall here, too.

Goods exporters &amp; marketplace sellers

If you export physical products (direct or via marketplaces like Amazon/eBay), FIRA is the first step; then, eBRC is generated to complete the documentation.

Simple rule: If you receive foreign income, you should have a FIRA for each payment.

Takeaway: Service exporters typically rely on FIRA; goods and SOFTEX-covered software exporters need FIRA + eBRC.

Skydo: instant, automated FIRA (and clear pricing)

If you receive payments through Skydo, FIRA is generated automatically for every inward remittance—no branch visits or follow-ups. You also get live mid-market FX with clear, flat fees (no hidden markups), plus India-based support.

Why exporters pick Skydo for compliance + cost control

Want a link-based flow with automatic FIRA and predictable FX? Try InstaLinks for US clients, or use Skydo’s virtual USD/EUR/GBP accounts for broader collections.

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If you’re billing overseas clients, from a SaaS subscription to a consulting invoice, you want three things: a. the payment to land on time, b. The INR you receive to be predictable, c. and the paperwork to be airtight.

This guide explains how Cashfree handles international payments, what it costs, what documents you get, and when a specialised exporter platform (like Skydo) might fit better.

Cashfree is a Bengaluru-based payments company. Domestically, it’s an RBI-licensed Payment Aggregator. For cross-border, it offers two ways to collect and settle in INR:

Let's take a moment to understand both these methods.&nbsp;

1) Global Collections Account (virtual accounts + local rails)

Best for: Invoices from overseas clients (freelancers, agencies, IT/consulting, SaaS).

In short: Feels like a “local bank account” for your client; you receive INR in India with per-payment FIRA.

2) International Payment Gateway (cards/APMs)

Best for: Online checkout flows (eCommerce, digital goods, subscriptions, SaaS).

In short: Optimised for conversion at checkout with multi-currency presentation; compliance comes as period summaries.

Cashfree International Payments Charges — what to expect

Use the International Gateway when:

Quick comparison: Global Collection Account vs Payment Gateway

A focused alternative for exporters: Skydo

While Cashfree gives Indian businesses multiple ways to collect payments, it’s still built to serve both domestic and international flows.
If you’re an exporter or freelancer who deals primarily in foreign payments, Skydo might be a better fit because it’s designed only for that.

With Skydo, you get global bank accounts in your business’s name across major currencies like USD, EUR, GBP, CAD, and AUD.
Your clients can pay you through their local payment methods, ACH in the US, SEPA in Europe, Faster Payments in the UK, and the funds reach your Indian account at live forex rates with zero markup.

If your client’s in the US, you can even share an InstaLink; they can pay instantly via card (5%) or ACH debit (2%) at midmarket rates without any markup

Every payment comes with an instant FIRA and eBRC (for Amazon sellers).

In short, Skydo takes care of the entire export payment journey,&nbsp; from collection to compliance, without the guesswork or hidden forex costs. So try Skydo today and let us take on of your payment worries

Cashfree International Payments (2025): Global Account, Gateway, Charges & Alternative