Foreign Inward (FIRC).pdf

Foreign Inward Remittance (FIR) is a term used to describe the transfer of money from a foreign source to an individual or entity in India. It can be a fund transfer from a foreign bank account to an Indian bank account or a transfer of cash or other financial instruments from a foreign entity to an Indian entity. FIR can be used for several purposes - personal or business transactions, investments, or even as a gift from a companion or family member living abroad.

Read more here- https://www.salt.pe/blog/foreign-inward-remittance-advice-fira

Salt is a fintech startup based out of Bangalore, helping businesses thrive in the international market with effortless international payments and the compliances.

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FIRC
Foreign Inward
Remittance Advice

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What is Foreign Inward Remittance?
Foreign Inward Remittance is the transfer of money from a
foreign source to an individual or 
entity in India for various purposes.
It is vital for Indian economy as it boosts reserves, and 
promotes trade and investments.

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How can Inward Remittances
be made to India?
Inward remittances to India can be made through two RBI-mandated 
methods, known as theRDA  (Rupee Drawing Arrangement) and
MTSS (Money Transfer Service Scheme).

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RDA enables Non Residential Indians(NRIs) and 
People of Indian Origin(PIOs) to remit money to 
India in Indian Rupees by debiting their overseas bank account 
in foreign currency and transferring the equivalent amount to the 
beneficiary's Indian account, eliminating the need for currency conversion.
RDA (Rupee Drawing Arrangement )
MTSS is a RBI-regulated service enabling individuals to send money 
to India from abroad through authorized agents, with a maximum limit of 
USD 2,500 per transaction and 30 inward remittances per year .
MTSS (Money Transfer Service Scheme)

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Acts as a proof of receipt of foreign payments.
Registered businesses can claim GST refunds by 
submitting FIRCs as proof of international transactions.
FIRA/FIRC is essential for international merchants/freelancers 
receiving foreign transfers to their INR account.
Use of FIRA
FIRC

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Purposes of Foreign Inward Remittance Advice
There are various pusposes of FIRA
Notifying Indian beneficiary of foreign remittance to their account.
Providing remittance details like amount, currency, and sender's information.
To serve as proof of inward remittance for tax and regulatory compliance.

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Enabling tracking of incoming funds and ensure timely receipt 
for beneficiaries.
To facilitate compliance with RBI guidelines for foreign 
inward remittances.
Assist authorized banks in maintaining accurate foreign exchange 
transaction records.
Assist in monitoring and regulating foreign exchange transactions 
in India.

8. Process for
Foreign Inward Remittance Adviced
The process for Foreign Inward Remittance Advice (FIRA)
involves the following steps:
Remittance
The first step is the inward remittance 
of funds from abroad to the 
beneficiary's account in India.1
Reporting to RBI
Authorized dealer bank reports inward
remittances to RBI via Electronic 
Reporting System(ERS) within 2 days.2
Generation of FIRA
Authorized dealer bank generates FIRA 
with details such as beneficiary’s name 
and address, remittance amount and 
currency, and sender’s details.3
Delivery of FIRA
Emailed FIRA can be downloaded and
printed, while a physical copy is sent 
by post.4
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How Does SALT Help
in Cross Border Payments?
SALT is a neobank that is making cross-border payments easy for businesses.With SALT, you can transfer money from abroad within 24 hours 
at a charge of just 1.75% of the total transaction amount. Whether you are a 
startup or an SME, SALT requires no minimum transaction amount to use its 
services. There are no hidden charges, no annual subscription fees, and no markup 
fees for using SALT.