What is FIRA? Meaning, Who Needs It, Why It Matters, and How to Get One
TL;DR
- FIRA full form: Foreign Inward Remittance Advice
- What it is: A document/acknowledgement from your Authorised Dealer (AD) bank confirming receipt of foreign currency into India (export proceeds realised through banking channels).
- Who needs it: Indian service exporters (freelancers, agencies, SaaS) and goods/software exporters.
- Why it matters: Proof for GST refunds, audits, and accounting; links foreign income to export activity.
- FIRA vs FIRC vs eBRC: Today, FIRA is used for export collections, FIRC is typically used in investment contexts, and eBRC digitally ties goods/SOFTEX exports to realised proceeds.
What is FIRA (and how the terminology evolved)
- FIRA = Foreign Inward Remittance Advice.
- Earlier, banks commonly issued FIRC (Foreign Inward Remittance Certificate) for all inward foreign exchange. With the RBI’s digital reporting via EDPMS, banks standardised on FIRA for export collections, while FIRC is largely seen in FDI/FPI/investment flows today (terminology can vary by bank).
What is FIRA in banking?
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.
Who actually needs FIRA?
Freelancers & 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.
Salaried Folks
If you are working for an international company and getting paid directly from them in foreign currency, you would need FIRA.
SaaS & productised services
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 & 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.
What’s inside a FIRA (field-by-field)
- Transaction reference number: Unique bank reference for the inward remittance.
- Date of receipt: The date funds hit your AD bank (used for compliance timelines).
- Amount & exchange rate: Foreign currency amount and INR equivalent with applied rate.
- Remitter details: Client name, address/bank—proves payment source.
- Purpose code: RBI purpose code (e.g., P0802 software, P0803 other business services).
- Beneficiary details: Your legal name and credited account.
- AD code: Identifies the AD branch that processed the transaction.
- Export references: Invoice/contract references linking the remittance to your export.
- Narration/nature of transaction: Describes the service/goods/software export category.
Why FIRA matters (beyond box-ticking)
- Compliance record: Establishes a clear on-banking-channels trail from invoice to receipt.
- GST & tax: Supports GST refund claims and Income-tax assessments as evidence of foreign exchange realisation.
- Enterprise onboarding: Larger customers often expect audit-ready documentation.
- Banking & credit: Clean FIRA trails reduce bank queries and help with credit lines.
FIRA vs eBRC: when you need which
- Service exports (freelancers, agencies, SaaS, consulting, design, marketing, etc.): FIRA usually suffices as proof of inward remittance for compliance and taxation.
- Goods exports and software under SOFTEX: You need FIRA and eBRC. After receiving FIRA, the bank verifies that the payment matches the export and then issues eBRC via EDPMS. eBRC is the DGFT-recognised document connecting shipment/SOFTEX to payment.
Takeaway: Service exporters typically rely on FIRA; goods and SOFTEX-covered software exporters need FIRA + eBRC.
How to get a FIRA (step-by-step)
Before payment arrives
- Inform your RM/branch that you expect export receipts; share the invoice/contract and purpose code you intend to use.
When payment lands
- Banks generate FIRA once funds are credited (based on SWIFT/payment data). However, generally, you have to request for the same via an application.
- Typical turnaround is 2–3 working days and most some banks charge a nominal fee (varies by bank).
Getting the document
- Online: Many banks provide download via Internet banking: look for Trade Services / Export Docs / Foreign Exchange.
- Branch: Request at FX/Trade counters (ask for “Foreign Inward Remittance Advice” if staff use different labels).
If there are delays
- Follow up within 5–7 days. Escalate to branch manager/FX desk if needed. Keep copies for GST refunds, audits, and records.
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
- Global bank accounts: You get virtual accounts in key geographies like the US, Europe, UK, etc, so that your clients can pay you via those accounts like a local
- InstaLinks (US clients): Share a link; clients pay by card or ACH; you get INR settlement with instant FIRA.
- Automated paperwork: FIRA for every payment; eBRC support for eligible marketplace flows (e.g., Amazon Global Selling).
- Purpose-code memory: Set once—auto-applies on repeat invoices for clean trails.
- Live forex rate: The conversion rate you see on Google is the rate that you get. Not a single rupee is added to the markup.
- India-based support: An India-based support team to tend to any payment-related query that you may have.
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.
What are the benefits of Fira?
Beyond compliance, here’s why FIRA is crucial for exporters and freelancers:
1. Goods or services exported are classified as zero-rated supplies, exempt from GST. However, to claim a GST refund for input tax credit, exporters must furnish their FIRA.
2. Exporters require FIRA to claim export-related incentives, including exemptions on foreign currency payments received in India.
Is FIRC mandatory for freelancers?
What is the purpose code for inward remittance for freelancers?
