FIRC (Foreign Inward Remittance Certificate)

Santhosh Kumar 19/07/2023

FIRC (Foreign Inward Remittance Certificate) upsc notes
Source: TH
Reserve Bank of India (RBI)
Set to issue standard operating procedure (SOP)
To banks
To expedite the issuance of proofs
Of inward remittances
For exporters
Aim
Address challenges faced by exporters
In rupee-based trading mechanism
For foreign trade
What is FIRC (Foreign Inward Remittance Certificate)?
Document that acts as a testimonial
For all the inward remittances
Entering India
What is an Electronic Bank Realization Certificate (e-BRC)?
Vital digital certificate
For export businesses
A bank issues e-BRC
To confirm the buyer made payment
To the exporter
Against the export of services or goods
The BRC is the proof
Of realization of payment
Against exports
Issues with FIRC (Foreign Inward Remittance Certificate)
Issue arises when certificate
From one bank
Not being sent to another
Hampers the generation
Of electronic bank realisation certificates (e-BRCs)
Creates problem for exporters
As e-BRCs
Serve as proof of payment
For their exports
Make them eligible
For benefits
Under the Foreign Trade Policy
Example
Exporter in India
Receives payment for exports
From a foreign buyer
Through a bank
Requires FIRC from that bank
As evidence of the inward remittance
If the FIRC is not transmitted
To the exporter’s bank
The exporter cannot obtain necessary e-BRC
May prevent them
From accessing benefits or incentives
Provided by the government
For export transactions

Related Posts

Special Economic Zones (SEZ) in India: Advantages & Disadvantages

Special Economic Zones (SEZ) in India: Advantages & Disadvantages

18/10/2019 / Business and Investment, Industries/Sectors, Infrastructure

IMF to disburse $1.1 billion to Pakistan mind map Recent News: Final tranche of $3 billion rescue-package Date: March 20, 2024 When: Board review in April Deal expires April 11 Why: Avoid sovereign debt default Balance of payment crisis What Staff-level agreement Fiscal consolidation benchmarks review Conditions met: Budget revision Interest rate hike Increase in taxes, electricity, gas prices Proposed reforms: Broadening tax base Adjusting power and gas tariffs Privatisation of PIA Setting up holding company for PIA's debt Where: Pakistan IMF Headquarters: Washington, D.C. Who: IMF International Monetary Fund Pakistan Nathan Porter IMF team leader Muhammad Aurangzeb Finance Minister of Pakistan Shehbaz Sharif Prime Minister of Pakistan Imran Khan Former Prime Minister How: Staff-level agreement reached Approval by IMF's Executive Board required Fiscal benchmarks set for loan reviewed Significance: Economic stability Avoidance of sovereign default Expected modest growth Inflows from partners Challenges: High inflation above target Economic vulnerabilities Need for more policy reforms Way Forward: Seeking new long-term bailout Medium-term programme discussions Deeper structural conditionality focus

IMF to disburse $1.1 billion to Pakistan

25/03/2024 / External Sector/Open Economy/Globalisation, Pakistan

Import Restriction on Electronics- Highlights, Reasons & Concerns

Import Restriction on Electronics- Highlights, Reasons & Concerns

06/08/2023 / Electronics & Telecommmunication, Policies/Plans/Guidelines/Frameworks, Trade & Commerce

India - Peru Trade Agreement

India – Peru Trade Agreement

10/10/2023 / International Organisations/Groupings/Agreements/Conventions, South America (Brazil; Argentina; etc), Trade & Commerce

If you like this post, please share your feedback in the comments section below so that we will upload more posts like this.

Categories: External Sector/Open Economy/Globalisation, Trade & Commerce

Tags: 19.07.2023, Newsbits

Responses

You must be logged in to post a comment.

🖍️ Highlight