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

Receiving international payments is rarely smooth sailing. Between long settlement delays, hidden fees, and the constant struggle of fluctuating FX rates, it's already a hassle. The last thing you need after all that is another headache, like chasing your bank for FIRCs and missing out on the benefits those hard-earned export payments are supposed to bring.

That's why it's crucial to clearly understand what FIRCs are and why they matter. Knowing their significance can mean the difference between regulatory compliance issues and smooth, benefit-packed global transactions. In this article, we'll discuss what is FIRC, full form of FIRC in banking, its benefits and how you can obtain the certificate.

FIRC stands for Foreign Inward Remittance Certificate. It is a document issued by banks in India to confirm receipt of foreign currency remittances into an Indian bank account. Before 2016, FIRC was a physical document issued by AD category I banks for all foreign inward business transactions.

Since 2016, FIRC is being issued only for capital account transactions like FDI transactions. For trade or export transactions, banks now issue a digital version of the FIRC document which confirms the foreign inward remittance linked to trade transactions. Different banks label their documents differently - eFIRC, Credit Advice, FIRA, BIRC, eBRC - but due to legacy reasons, many exporters, chartered accountants, and staff at banks may continue to call it FIRC. However, the usage of the term FIRC, in context of a trade transaction may cause unnecessary confusion and hence is best avoided.

Exporters should instead use their bank specific terminology issued by authorised banks that serves as evidence of a global fund transfer for payment of an export. These banks are a special category of banks known as AD (Authorised Dealer) Category 1 Banks that are assigned the role of overseeing foreign exchange transactions. Among their many functions, one is issuing FIRC documents to exporters receiving payments from abroad.

However, as per RBI guidelines issued post-2016, physical FIRCs are no longer issued for trade-related payments. Today, the document that serves this purpose is typically a digitally generated record such as an Inward Remittance Message (IRM), an eFIRC, or a Foreign Inward Remittance Advice (FIRA), depending on your bank. These are often loosely referred to as ‘FIRC’ in everyday conversations, even though the actual document format and name may vary.

A Foreign Inward Remittance Certificate usually contains all the information related to inward remittances, such as the amount of foreign currency received, the same amount converted in INR, and the source of transfer. In addition to this, your FIRC certificate format also includes:

• Name and address of the sender and receiver of funds
• Name and address of the bank that first processed the foreign transaction
• The foreign exchange rate that's applied to the transaction
• Demand Draft, Telegraph Transfer, transaction number, or cheque number
• Purpose code of the remittance, as per the recipient of the fund

The new digital version of FIRC, usually contains information related to inward remittances, source of funds, purpose code of the remittance, date of remittance, UTR of the transaction, and the INR amount received. In addition to this the document may also provide an amount in foreign currency and the exchange rate applied.

Any business exporting goods, service or software must obtain the digital version of the FIRC from their bank. This document must be obtained for every foreign inward remittance related to the trade/export transaction. 

In India, the digital FIRC or the eFIRC is issued by:

1. Exporter’s AD Category I banks

Only the exporters AD Category I bank has the authorization and the obligation to issue the digital version of the FIRC. This is true irrespective of how the exporter receives the foreign inward remittance - directly a SWIFT wire transfer to the INR bank account or via Fintech like Xflow. When receiving cross-border payments via a Fintech, it's the fintech’s responsibility to provide the exporter/exporter’s bank with all the relevant details about the transaction.

2. Self-generated from DGFT

For certain types of transactions, the exporter’s AD Category I bank also creates an IRM (Inward Remittance Message) in RBI’s EDPMS portal. While IRM is always created for payment related to exports of goods and export of software, the process varies by bank of services transactions. If the exporter’s bank creates an IRM, it is electronically submitted to DGFT. The exporter may log-in to the DGFT portal and self-generate the digital FIRC. The DGFT refers to this document as eBRC (electronic bank realization certificate)

Once you have received your international payment for the goods, software or services you have exported, you need to request your bank for the digital version of the FIRC. Use bank specific terminology to avoid confusion It usually requires filling out a request form that will have details like:

• Receivers name
• Name and address of the sender
• Date of transfer
• Amount of funds received
• Purpose of the remittance
• Account number
• Unique Transaction Reference (UTR) number

After you have submitted this request form, depending on the nature of the transaction and the bank specific process, your bank might generate an Inward Remittance Message (IRM) on EDPMS. After paying a fee, your bank will issue this digital FIRC document. While the IRM creation must happen within 2 days, the processing time for the document could be 1-10 working days, and sometimes, you may need to follow up as well. 

Note: After you receive a cross-border payment via Xflow, within 24 hours, Xflow provides you with payment advice on its banking partner’s (also a AD category I bank) letterhead which has all the details about the transaction. You can simply forward this document along with your request letter and your bank will issue the digital FIRC. You can also authorize Xflow to liaise with your bank to obtain the digital FIRC for you. 

Since foreign exchange transactions fall under the regulatory ambit of the RBI, specific guidelines have been issued regarding the issuance of digital FIRC. According to these guidelines:

• Only AD (Authorised Dealer) Category I banks can issue the digital FIRC.
• Authorised banks have to report every global payment made to India as a remittance to the EDPMS.

For most parts yes!  While the name of the document and the template varies from bank to bank, these documents are largely used to show evidence of foreign inward remittance for trade transactions. 

Digital FIRC is quite an essential document, and you must obtain it from your bank. First, it's the proof that you have received a specific amount in cross-border payment. Other reasons why digital FIRC is essential are:

1. Export incentives: There are many government schemes that provide exemptions and various benefits on your foreign currency payments. To avail of these benefits, you need to show your digital FIRC as evidence of the transactions to the Directorate General of Foreign Trade (DGFT) and the Central Board of Indirect Taxes and Customs (CBIC).

1. Regulatory Compliance: Digital FIRC ensures compliance with the RBI and Foreign Exchange Management Act (FEMA) guidelines. This helps in facilitating transparency in cross-border transactions.

1. GST Refunds: Some exporters have to pay IGST during the export process. However, exports come under the zero-rated supplies category, which means they can get a refund of this amount. The digital FIRC is submitted as proof to initiate this GST refund. Note that, you can avoid paying IGST on export transactions by taking LUT (letter of undertaking) from the GST portal.

Sometimes, exporters can encounter several problems when requesting their FIRC from banks. These can be:

1. Delay in FIRC issuance

If your FIRC hasn't arrived within the usual processing time, here's what you can do:

• Check your email's spam folder, especially for e-FIRCs sent digitally.
• Reach out to your bank's customer support and provide your transaction or request reference number.
• Visit your home branch with all relevant transaction details to follow up in person if needed.

2. Inaccurate information on FIRC

If you spot any errors on your FIRC:

• Get in touch with your bank right away.
• Share supporting documents that clearly show the correct details.
• Request a revised FIRC.

Pro tip: Always double-check your submitted details beforehand to avoid correction delays later.

3. Need of FIRC for past transactions

Most banks accept FIRC requests for transactions up to 1-2 years old. To apply, you'll typically need the following:

• Full transaction details with date, amount, sender, and purpose
• Bank statements showing the credited amount
• A formal request letter explaining the purpose for needing the FIRC for an older transaction, such as audit, compliance, refund claims

Digital FIRC, in its various forms, is an essential document that officially verifies your export payments and ensures compliance with key regulatory frameworks, such as FEMA and RBI guidelines. Although the traditional FIRC format is mostly obsolete, its modern digital versions — eFIRC, IRM, or FIRA — serve the same purpose. More than just a compliance tool, it's your gateway to export incentives, tax exemptions, and GST refunds. Without it, you risk missing out on these benefits. That's why it's crucial for every exporter or service provider to have a clear understanding of what an FIRC is, what the term refers to today, and the various nuances involved in obtaining and using it.

If your business deals with cross-border payments, Xflow is the smart way to go about. With Xflow, there are no more long settlement delays or endless follow-ups for FIRAs. Xflow offers lightning-fast settlements within one business day, FX rate savings of up to 50%, and auto-generated FIRAs for every transaction, completely free of charge.

Moreover, by uploading your FIRC on Xflow’s FIRC calculator, you can instantly get a transparent breakdown of fees and FX rates. This further helps you uncover hidden charges and make smarter decisions with every transaction. Sign up with Xflow today!