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Step-by-Step: Obtaining Your FIRC Certificate

Step-by-Step: Obtaining Your FIRC Certificate
anoosh-kotak
Anoosh Kotak21 February 2024

We understand the challenges of receiving payments from abroad. If you're an exporter, you need to obtain a Foreign Inward Remittance Advice (FIRA) from your bank as proof of receiving foreign funds. While FIRA is often confused with the Foreign Inward Remittance Certificate (FIRC), there’s a key difference between the two.

Before 2016, AD Category I Banks issued FIRCs to exporters, serving as proof of payment receipt and a crucial document for claiming export-related incentives like tax exemptions on foreign currency payments. In 2016, the RBI introduced the Export Data Processing Management System (EDPMS) to digitize export-related data. With EDPMS, the RBI mandated banks to stop issuing FIRC certificates for export collections, replacing them with FIRAs.

Now, FIRC certificate is issued only for specific transactions like receiving inward remittances from Foreign Direct Investments (FDI) and Foreign Institutional Investments (FII). If you’re receiving returns from foreign investments, you'll need a FIRC. For all other foreign payments, FIRA is what you need.

With this distinction clarified, let’s explore how to obtain your FIRC certificate or FIRA.

How to get your FIRC certificate from the Bank?

As we've seen, you only need a FIRC certificate for specific transactions, like receiving inward remittances from foreign investments. For other export collections, a FIRA is required. However, obtaining these documents from the bank can be a time-consuming and often frustrating process.

Firstly, you need to submit a formal request to the bank, to obtain your FIRA/FIRC. Once submitted, banks typically take around 7-15 days to process the request and issue your FIRA or FIR certificate. Multiple follow-ups are often necessary, and banks may charge a fee of at least INR 400 for issuing a FIRA, depending on the institution.

Beyond banks: 4 seamless FIRC certificate providers

Banks have always been the go-to for cross-border transactions, and they still lead the way in handling international payments. But now, we’re seeing a wave of new fintech platforms that are not just making global payments easier but also simplifying compliance.

Let's dive into these platforms that offer FIRA/FIRC certificate to users without all the hassle.

Automated FIRA by Skydo

Skydo is a global payments platform designed to help businesses and freelancers receive international payments quickly, compliantly, and cost-effectively. Our fully automated system, integrated with bank partnerships, ensures seamless compliance with RBI guidelines—no manual intervention needed.

With Skydo, receiving export payments is a breeze. We automatically generate the required FIRA at no extra cost. Simply log into our user-friendly dashboard, and you'll find your FIRA ready to download, complete with all the necessary details

Wise FIRC

Wise (formerly TransferWise) is a global money transfer platform operating in over 80 countries.  While it initially started out as a peer-to-peer (P2P) remittance service, Wise has since diversified its offerings to cater to businesses by introducing multi-currency accounts for both individuals and enterprises. 

Wise also issues digital FIRA or eFIRC as they call it for every international business payment. However, note that an additional fee is levied for the same depending on the currency of remittance.

PayPal FIRC

PayPal is a go-to payment solution worldwide, both for personal and business transactions.  It offers a comprehensive ecosystem for payments, including e-commerce integration, invoicing, international money transfers, and credit/debit card services. 

When it comes to ensuring compliance while receiving international payments, PayPal provides Indian businesses with monthly digital FIRA. This means that all international transactions of the previous month will be referenced in a single FIRA, which will only be available by the 15th of the subsequent month. 

Payoneer FIRC

Founded in 2005, Payoneer is quickly becoming a popular payment solution for businesses and freelancers worldwide. It facilitates international transfers by providing users with virtual bank accounts in multiple currencies. 

Payoneer simplifies compliance for Indian businesses by offering free digital FIRAs. All FIRAs are conveniently accessible in one designated place, and they can be downloaded in bulk if needed.

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Parting Words

FIRA is a crucial part of the international payments puzzle, serving as proof of receipt and a key to claiming government export incentives. With Skydo, every transaction comes with an automated FIRA at no extra cost. Switch to Skydo today and simplify your compliance effortlessly.

Save 50% on every international transfer
Receive from 150+ countries
Get global accounts
Zero forex margin
globe_with_skydo
Frequently asked questions

Q1. How long does getting a FIRC from my bank typically take?

Ans: Traditionally, it can take days to weeks to get a FIRC. However, with Skydo, you can get it instantly.  

Q2. What are the legal implications of not receiving a FIRC?

Q3. What information is needed to obtain a FIRC?

About the author
anoosh-kotak
Anoosh Kotak
Growth
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