As an Indian exporter, navigating the complexities of international transactions and compliance can feel like solving a complex puzzle. Today, we'll explore a crucial piece of that puzzle: FIRC

FIRC or its full form Foreign Inward Remittance Certificate, is a document issued by banks as proof of receiving international payments. Over the years, regulations around FIRC have changed significantly, creating confusion and mystery around this important document. Let's clear the air and decode the what, who, and why of FIRC.

As we've covered, the full form of FIRC is a Foreign Inward Remittance Certificate and it serves as a proof of foreign transfers. Until 2016, <a href="https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/1061.PDF?no_follow=true/">AD Category I Banks</a> were authorised to issue FIRCs to exporters for receiving international payments. This document was essential for exporters to obtain after each cross-border payment. It served not only as proof of payment receipt but also as a crucial document for claiming export-related incentives, such as tax exemptions on foreign currency payments received in India.

Changing RBI Guidelines: From FIRC to FIRA

FIRA is often still referred to by its old name, FIRC. While both documents serve the same purpose, FIRC is technically only issued for returns on&nbsp;Foreign Direct Investment (FDI )or Foreign Institutional Investment (FII). For all other export collections, FIRA is what you need.

Anyone receiving foreign payments needs a FIRC certificate or FIRA. Beyond goods and service exporters engaging in international trade, many individuals and entities may receive international payments without realising it.&nbsp;

Overall, the following typically require a FIRA:

Beyond compliance, here’s why FIRA is crucial for exporters:

This is a sample FIRA/FIRC document. All crucial remittance details have been masked for security purposes. Now let’s break the content of a FIRA down: 

Receiving your export payment directly through your bank can make obtaining a FIRC/FIRA a lengthy process. You need to submit a request to the bank, and the bank typically takes 7-15 days to provide the FIRA. You may also need to follow up multiple times, and banks often charge at least INR 400 to issue the FIRA, depending on the institution.

Getting a FIRA might sound like a hassle, but with Skydo, it's a breeze. Our fully automated payment system along with built-in partnerships with banks, ensures effortless compliance with RBI guidelines, without needing any manual intervention. 

When you receive an export payment through Skydo, we automatically generate the required FIRA for you at no extra cost. Just log into our user-friendly dashboard, and you'll find your FIRA ready to download, complete with all the details you need. 

In conversations around FIRA, there are a few more terms that get frequently mentioned, one of them being eFIRC. So what exactly is eFIRC?

Understanding the difference between electronic Bank Realisation Certificate (eBRC) and FIRC

Generally speaking, e-BRC applies mostly to goods and software exporters (under <a href="https://stpi.in/en/home?no_follow=true/">STPI</a>). If you are one of them, you can use this simple decision tree to understand which documents you will need:

GST and FIRC/FIRA: Everything you need to know

Exporting goods and services is considered Zero-Rated Supply, meaning it is subject to 0% GST. However, to claim a GST refund for the input tax credit, exporters must provide the required documents including FIRC or FIRA. These documents authenticate that the business is claiming a refund because it exported services and couldn't offset its input tax credit as it would in normal domestic business. Without FIRA, claiming a GST refund may not be possible

Claiming GST refund with FIRA; Things to take note of:

As we surge in cross-border transactions, ensuring compliance and safeguarding against illicit activities has become a pressing concern. However, at Skydo, we believe your focus should be on advancing your business, not on grappling with compliance challenges.

With Skydo, enjoy seamless international payments, delivered promptly and without any hidden fees. But that's just the beginning! Every time you receive a cross-border payment, an auto-generated FIRA is readily available for you to download, relieving you of compliance burdens so you can devote your energy to what truly matters: driving your business forward.

Dive into the world of FIRC. Explore the full form, importance, and process of obtaining FIRC for your international transactions

Foreign Inward Remittance Certificate (FIRC): Full form, meaning and RBI guidelines

Prashanth

small_63aec75c493ff751315d72ac_63948a436dc07c0bec0374ea_uA3i3IUVLPHk_-xjAlW9Z7bxKaOLRCylGX1byeHyzyE.png

thumbnail_63aec75c493ff751315d72ac_63948a436dc07c0bec0374ea_uA3i3IUVLPHk_-xjAlW9Z7bxKaOLRCylGX1byeHyzyE.png

Prashanth Kumar

As an exporter receiving international payments, you must be familiar with EEFC (Exchange Earners' Foreign Currency) Accounts. Offered by AD Category I Banks, these current accounts allow you to retain foreign income received in its original currency (USD, EUR, GBP, etc.) for up to 60 days.&nbsp;

Since 2016, India’s cross-border remittances have been growing at an impressive <a href="https://www.pwc.in/assets/pdfs/consulting/financial-services/fintech/point-of-view/pov-downloads/the-evolving-landscape-of-cross-border-payments.pdf?no_follow=true">8% CAGR,</a> driven by the global movement of goods, services, international travel, and an expanding international workforce. Despite this growth, international remittances remain challenging and costly due to multiple fees and charges. To address these issues, the Reserve Bank of India (RBI) introduced EEFC accounts.&nbsp; Being current accounts, these accounts do not yield any interest. Each bank offering EEFC Accounts supports a specific number of currencies, also allowing you to hold multiple currencies in a single account. Initially designed to help exporters manage their foreign exchange earnings, EEFC accounts are available to companies, individuals, and joint account holders.

In this article, we will dive into the full form, meaning, and benefits of an EEFC account, and explore other efficient and cost-effective ways to handle your international payments.

Benefits of EEFC Account
    


    


    
    


    


    
    



As we‘ve seen, an Exchange Earners' Foreign Currency (EEFC) account allows exporters to deposit their foreign exchange earnings without converting them to Indian rupees. Currently, multiple <a href="https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/1061.PDF?no_follow=true">Authorised&nbsp;Dealer (AD) Category I banks </a>in India offer EEFC accounts including DBS, ICICI, HDFC, Axis Bank and many more.&nbsp;

However, it's always a good idea to speak with the bank first to confirm their services.

Now, let’s take a moment to understand the benefits of EEFC accounts.

An EEFC account lets you hold foreign currency earnings until the last day of the following calendar month. For example, if you receive foreign payments on June 16th, you can keep them in your EEFC account until July 31st. This holding period gives you the flexibility to monitor forex rates and convert the funds to INR when it's most beneficial, while also allowing you more time to make foreign payments directly from your EEFC account without conversion

However, keep in mind that you can only retain your foreign exchange earnings until the last day of the succeeding calendar month  after which it will be automatically converted to INR. So, don’t get too comfortable parking your foreign exchange in your EEFC account—use it wisely before the deadline sneaks up on you!

An EEFC account not only lets you temporarily park your foreign exchange earnings but also enables you to make foreign payments without converting them to INR, avoiding two-way currency conversion costs.&nbsp;

As an exporter, when you receive foreign payments via your Indian bank account, they are typically converted into INR, incurring transaction costs and currency conversion charges. If you need to make an international payment, you'll have to convert your INR back into foreign currency, incurring additional fees. Essentially, you end up paying currency conversion costs for both receiving and sending foreign payments, doubling your costs.

EEFC accounts bypass this inconvenience by allowing you to retain 100% of your foreign exchange earnings and make foreign payments directly from the account without having to convert it.&nbsp;

In essence, EEFC accounts facilitate seamless international transactions by giving users the option to hold and manage their foreign exchange earnings better.&nbsp;

Resident individuals of India, whether individuals or companies earning foreign exchange, can open EEFC accounts. However, entities in<a href="https://nsez.gov.in/Resources/SEZ%20FAQs.pdf?no_follow=true"> Special Economic Zones (SEZs)</a> cannot open EEFC accounts, though they can open a <a href="https://www.icicibank.com/nri-banking/bankaccounts/foreign-currency-account#:~:text=An%20RFC%20(Resident%20Foreign%20Currency,hold%20funds%20in%20foreign%20currency.?no_follow=true">foreign currency account</a>. For context, a Special Economic Zone (SEZ) is a designated area where businesses operate without paying certain taxes and duties. It's essentially considered foreign territory for trade purposes.

Which Transactions are Eligible Under EEFC Accounts?

As a current account, EEFC accounts support various transactions, including:

However, being a current account, an EEFC account cannot support capital account transactions. This means foreign remittances in the form of loans, investments, or returns on investments are not permitted in your EEFC account.

The process of Opening an EEFC account is similar to that of a regular current account. You'll need to complete an application form and submit the required documents. However, there are additional requirements, such as providing proof of status, which aren't typically necessary for a regular account.

Once you've submitted your application and documents, the bank will review them. Upon approval, they will furnish you with your EEFC account details, including the account number.

Do note that the procedure may vary slightly across banks, so it's advisable to consult with your bank to understand their specific application process.

Documents needed for opening an EEFC account&nbsp;

Although the specific documents required can vary from bank to bank, here are the typical documents you'll need to open an EEFC account:

As we've discussed, EEFC accounts can be opened by all foreign exchange earners, whether individuals, partnership firms, or public/private limited companies. Depending on the entity opening the EEFC account, specific documents may be required. For example:

These requirements ensure that the necessary legal and compliance standards set by the government of India are met for each type of entity.

Charges and Fees Associated with EEFC Accounts

mediaLibraryStrapi

Most banks don’t charge a fee for opening and maintaining an EEFC account. However, there are several ancillary charges that banks may levy on various activities linked to EEFC accounts:

To get a complete picture of the applicable fees and charges for your EEFC account, make sure to talk to your bank. This will help you avoid any surprises and ensure you understand all potential costs involved.

Why Choose Skydo Over Traditional EEFC Accounts?

EEFC accounts offer exporters a convenient way to manage and park their foreign exchange earnings temporarily. This holding period allows them the freedom to monitor and choose the exchange rate at which they want to convert their foreign exchange.

However, despite these advantages, receiving international payments through EEFC accounts can be quite costly, regardless of your banking partner. As we have seen, banks often levy numerous charges on EEFC account transactions, including SWIFT charges, currency conversion fees, forex markups, FIRA charges, and more. These fees can quickly add up, making the process expensive.

In summary, while EEFC accounts offer flexibility and control, the associated costs can add up quickly.&nbsp;

<a href="https://www.skydo.com/blog/eefc-account-vs-payment-platforms">At Skydo, we understand the challenges of traditional banking </a>especially when it comes to cross-border transactions. For freelancers and small businesses, constantly monitoring forex rates and tracking bank fees is a time-consuming and resource-draining task. That’s why we offer businesses and freelancers a fast, secure, and less expensive way to receive international payments. With Skydo, you can set up an international bank account in less than 5 minutes. Your foreign clients can pay into this account, making it a local transfer and eliminating SWIFT charges.

Further, we convert your foreign earnings to INR at live forex rates, without any markup or currency conversion fees, ensuring you keep more of your earnings. All we charge is a flat transaction fee: USD 19 for remittances below USD 2000 and USD 29 for remittances over USD 2000. And yes, you also receive an instant FIRA for every transaction at no extra cost, helping you stay compliant.&nbsp;

Switch to Skydo and simplify your international payments while maximising your earnings. Experience the Skydo difference today.

EEFC Account Overview: Full form, Meaning, Eligibility & Benefits

large_Blog images 20th-07.png

medium_Blog images 20th-07.png

small_Blog images 20th-07.png

thumbnail_Blog images 20th-07.png

PayPal is a widely recognized platform for cross-border payments and online transactions, especially outside India where it reigns as a go-to solution. Despite its popularity, many <a href="https://www.skydo.com/blog/seamlessly-accept-international-payments-in-india?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Indian exporters</a> are hesitant to use it owing to its relatively high fees.

However, exporters often encounter a dilemma when foreign clients insist on using PayPal, a platform they trust and are familiar with.

Understanding the needs of such Indian exporters, <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo</a> has introduced PayPal integration, making it easier for them to handle all cross-border payments under one roof. While Skydo can help manage your <a href="https://www.skydo.com/blog/top-paypal-india-alternatives-for-international-payment">PayPal transactions</a>, let's first understand how to open a PayPal account for yourself.

Opening a PayPal account is a straightforward process involving the following steps:

You can share your PayPal registered email address or mobile number with the client. They will add your details in the recipient section of the PayPal app and click on send payment. Once the amount reaches your account, PayPal will notify you of the same.

Alternatively, you can create a personalised payment link and share it with the client through text messages, email, or social channels.&nbsp;

You can view the money you have received by logging into your PayPal account. From there, you have the option to:

How Does PayPal Work With Skydo’s Platform?

Skydo's platform takes your payment options a step further by integrating PayPal with other methods like bank transfers and card payments.

This empowers you to design payment links on Skydo that offer your clients the flexibility to choose their preferred method – bank transfer, card payment, or PayPal wallet payment.

Integrating PayPal with Skydo unlocks a range of advantages:

Seamlessly Link Your PayPal Account with Skydo

To connect your PayPal account with Skydo:

As a PayPal-integrated platform, Skydo offers both cards and PayPal wallet as payment methods, with PayPal's standard pricing in effect.&nbsp;

For bank transfers, Skydo offers a <a href="https://www.skydo.com/blog/unlock-transparent-pricing-and-maximize-cost-savings-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">transparent flat fee structure</a> that is reasonable and easy to understand. The fees are set at $19 for payments up to USD 2,000 and $29 for payments between USD 2,001 and USD 10,000.&nbsp;

Moreover, PayPal issues the FIRA for transactions processed through PayPal wallet or card payments. Skydo platform provides <a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">instant FIRC</a>&nbsp;for bank transfers. This ensures compliance with regulatory requirements and improves transparency in cross-border transactions.

Add Convenience Fee to Cover Processing Costs

PayPal charges a convenience fee on each transaction. Therefore, to cover the processing costs, Skydo allows its users to charge convenience fees from the clients. Its percentage usually varies between 4% to 8%. Users can choose the appropriate option based on the processing costs for their preferred payment mode.

For example, let's consider a scenario where a client chooses to pay a $1000 invoice via credit card.&nbsp;

Now, if there is a 4% convenience fee on credit card payments, you can select a 4% convenience fee while sending the payment link to the client. They would be charged an additional $40, bringing the total payable amount to $1040. Similarly, selecting the 6% or 8% convenience fee options would result in additional charges of $60 and $80, respectively.

Don't let complicated payment methods or platforms hold back your business growth. Utilize Skydo's seamless integration with PayPal to provide your clients with a hassle-free experience.

Skydo empowers you to manage multiple payment options with transparent fees, so you can focus on expanding your global reach. <a href="https://dashboard.skydo.com/login?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Join Skydo today</a> and unleash the potential of streamlined international payments!

Connect or Open your PayPal account with Skydo th

large_Connect or Open your PayPal account with Skydo th

medium_Connect or Open your PayPal account with Skydo th

small_Connect or Open your PayPal account with Skydo th

thumbnail_Connect or Open your PayPal account with Skydo th

If you're a freelancer or a business owner working with international clients, you need an efficient and cost-effective payment processor for your global payments.

While <a href="https://www.paypal.com/in/home">PayPal</a> and <a href="https://stripe.com/in">Stripe</a> are popular payment solutions, they might not be the best fit for every business. Choosing the wrong payment gateway costs you money and your valuable time.

It's essential to be mindful of their drawbacks, including high transaction fees, substantial conversion charges, and regulatory complexities.&nbsp;

Despite their widespread usage, Stripe and PayPal charge high transaction fees, typically ranging from 1% to 4% of the transferred amount, in addition to currency conversion fees based on the payer's country. This complex fee structure poses challenges in accurately estimating overall costs beforehand.

Moreover, for Indian merchants, obtaining <a href="https://www.skydo.com/blog/all-you-need-to-know-about-FIRC-a-complete-guide?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Foreign Inward Remittance Advice (FIRA)</a> documents from Stripe and PayPal can be cumbersome, often taking several days to process. These delays in FIRA document processing lead to transaction delays, causing frustration and potentially hindering business growth.

These collective factors can hinder your profitability and growth. Numerous users of these platforms for digital payments have reported experiencing payment delays.

Here are some excerpts from unsatisfied customers highlighting their experiences.

Skydo: A cost-effective and more efficient alternative

Skydo is a cutting-edge international payment processor designed to streamline international transactions, offering you the best value for your money. It's designed to empower you to expand your business globally stress-free.

Why you should choose Skydo for your international payments

Skydo charges a flat fee of 19 USD for transactions up to 2,000 USD and 29 USD for transactions above 2,000 up to 10,000 USD. That's it – no hidden charges, no percentage games.&nbsp;

Skydo uses real-time exchange rates, offering an entirely transparent pricing model. Unlike Stripe and PayPal, there are no processing fees or FX markups. You receive the maximum value of your online payment and know your cost before transferring funds.

With Skydo, you can <a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">download all your FIRCs instantly</a> with just one click. It eliminates delays and ensures compliance.

We believe in complete transparency. With our <a href="https://www.skydo.com/blog/real-time-tracking-of-international-payments?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">real-time tracking feature</a>, you can monitor the status of your funds anytime you want.&nbsp;

You can check, generate, and send invoices, reminders for recurring payments, and up-to-date ledgers.&nbsp;

Using efficient payment solutions like SWIFT and NEFT, Skydo ensures your funds move promptly and securely. You can expect the funds in your virtual bank account to reach your Indian bank account in 18-24 hours.&nbsp;

Our customers endorse us for our transparency.

“Skydo is a fintech platform which brings transparency, speed &amp; efficiency to B2B cross-border payments. We, at Primathon, recently started using it. We made a USD 50k net worth of transactions so far and the experience is just wow 😍 ! From the onboarding process to transactions, everything is as optimised as it could be with added transparency. Folks in the B2B industry should learn from them! Other fellow founders in the services industry, give them a shot!” - Sagar Patidar, Founder &amp; CEO, Primathon on <a href="https://www.linkedin.com/posts/sagarpatidar_fintech-b2bpayments-appreciation-activity-7086641698872672256-Kd6s?utm_source=share&amp;utm_medium=member_desktop">LinkedIn</a>.

Skydo emerges as the best alternative to Stripe and PayPal in cost, transparency, and speed. You also get free <a href="https://www.skydo.com/blog/transforming-your-invoicing-experience-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">online invoicing</a>, instant FIRC and custom payment reminders.

With its transparent pricing structure, Skydo stands out from other payment processing companies. You can <a href="https://www.skydo.com/blog/cut-international-transaction-costs?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">unlock substantial savings of up to Rs. 10 lakh per annum</a> with Skydo.

Focus on your business as Skydo takes care of your global payments. It is secure, efficient, affordable, and reliable.

<a href="https://www.skydo.com?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Start your free trial today</a> and grow globally with Skydo!

Disclaimer: Please note that the information provided is accurate as of February 2024.

Which Payment Processor Is Cheaper than Stripe and PayPal th

large_Which Payment Processor Is Cheaper than Stripe and PayPal th

medium_Which Payment Processor Is Cheaper than Stripe and PayPal th

small_Which Payment Processor Is Cheaper than Stripe and PayPal th

thumbnail_Which Payment Processor Is Cheaper than Stripe and PayPal th

As a freelancer or exporter, you're likely familiar with FIRC certificate, or Foreign Inward Remittance Certificate. However, with changing regulations, FIRC has become somewhat of a mystery for many. To clear up any confusion, let's break it down and explore what this document means, who issues it, and most importantly, how you can get your FIRC certificate online.&nbsp;

FIRC, or its full form <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide" target="_blank">Foreign Inward Remittance Certificate</a>, is an important document issued by banks to exporters as proof of receiving foreign currency payments. Prior to 2016, AD Category I Banks were authorized to issue FIRCs to exporters for every cross-border payment received. This certificate was crucial for exporters to serve as proof of foreign transfers. It was also a crucial document for both goods and service exporters to claim their tax exemption and GST refund.

However, as per RBI guidelines since 2016, banks only issue FIRCs for specific financial transactions like inward remittances from Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII). For export collections, banks now provide a Foreign Inward Remittance Advice (FIRA) instead.

Although FIRA is often still referred to as FIRC, the two serve slightly different purposes. The key difference is that FIRCs are now limited to transactions related to foreign investment, meaning FDI and FII transactions, while FIRA is what exporters need for all other international payments.&nbsp;

Understanding FIRA/ FIRC Certificate Format

This is a sample FIRA/FIRC certificate. All crucial remittance details have been masked for security purposes. Now let’s break the content of a FIRA down:

According to FEMA and RBI regulations, only AD Category I banks are authorized to issue FIRA or FIRC certificates. To obtain one, you must submit a request form with the required details to the bank handling your foreign payment. Once the request is processed, the bank will issue the FIRA or FIRC certificate to the beneficiary i.e. your account. We’ll cover the detailed process in the next section.&nbsp;

How to get your FIRC Certificate from the Bank

As discussed, to obtain your FIRC document or FIRA from the bank, you'll need to submit a request form with the following details:

These are the standard details required, though some banks may ask for additional information based on the transaction. Once submitted, the bank will process your request, and most banks charge a fee between INR 400-800 for issuing the FIRC/FIRA.

The entire process typically takes 7-15 days, and you may need to follow up with your bank to expedite it.&nbsp;

FIRC Certificate Download: How to do it online?

Today, beyond traditional banks, several online platforms like Skydo, Wise, and Payoneer provide exporters with fast and secure options for receiving international payments in India. Some of these platforms also offer digital FIRAs to streamline compliance for exporters.

While some platforms may refer to these digital FIRAs as <a href="https://www.skydo.com/blog/efirc-firc-brc-essentials-differences" target="_blank">eFIRC,</a> electronic FIRC digital FIRC, or simply FIRC, it's important to understand that they are essentially digital FIRAs, regardless of the name. Now, let’s explore how you can receive your digital FIRA from these platforms:

Since 2021, <a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives" target="_blank">PayPal</a> has started issuing digital FIRA to businesses receiving international payments in India as proof of payment receipt. The platform doesn’t issue individual FIRA for every transaction, instead, it issues <a href="https://www.paypal.com/in/brc/article/paypal-monthly-digital-firc?no_follow=true">monthly digital FIRA</a>, and all international transactions of the previous month are referenced in that one FIRA. You can access this FIRA by the 15th of the subsequent month. For example, your monthly FIRA for July will be available to you by 15th of August.

Once the FIRA is available, PayPal will notify you of the same via email. Here’s how you can download it:

Note that PayPal doesn't charge any additional fee for issuing FIRA.&nbsp;

<a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees" target="_blank">Payoneer</a> is another widely used platform for Indian businesses to receive international payments. To simplify compliance, Payoneer provides users with free digital FIRAs for all their international transfers.

Here’s how you can download your FIRA from Payoneer&nbsp;

<a href="https://www.skydo.com/blog/top_5_wise_alternatives_for_international_payment" target="_blank">Wise</a> is a leading platform for businesses and individuals to receive foreign payments, supporting both B2B and P2P transfers. For business payments in India, Wise provides a digital FIRA via email for each transaction.

However, Wise charges an additional fee for issuing the digital FIRA, which varies depending on the currency. For instance, if you receive a payment in GBP, the fee is <a href="https://wise.com/in/pricing/business/receive?sourceAmount=1000&amp;sourceCcy=GBP&amp;targetCcy=INR?no_follow=true">1.91 GBP,</a> while for USD transactions, the fee is <a href="https://wise.com/in/pricing/business/receive?sourceAmount=1000&amp;sourceCcy=GBP&amp;targetCcy=INR?no_follow=true">2.50 USD</a>.&nbsp;

Get Your Free FIRA from Skydo instantly&nbsp;

At Skydo, our goal is to simplify the international payments process, allowing you to focus on growing your business. That’s why we provide digital FIRAs for every transaction, completely free of charge.

When transacting through Skydo, it automatically generates FIRA for all international payments when they reach your bank account. You will also be notified of the same via email. The document details will be according to the information mentioned in the invoices and payment receipt details. You can easily go to the Skydo dashboard and download FIRA receipts for all or specific transactions, at no extra cost! 

Here’s how you can download your FIRA from Skydo

With Skydo, enjoy hassle free and compliant international payments, delivered promptly and without any hidden fees. Switch to Skydo and experience the difference.

large_How to get your FIRC certificate Online

medium_How to get your FIRC certificate Online

small_How to get your FIRC certificate Online

thumbnail_How to get your FIRC certificate Online

How to get your FIRC certificate Online

Navigating compliance requirements for Indian exporters can be confusing, especially with overlapping concepts like FIRC, FIRA, eFIRC, and BRC. In this blog, we'll break down what each of these terms means and how they differ.

FIRC or its full form <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide" target="_blank">Foreign Inward Remittance Certificate</a>, is a document issued by banks as proof of receiving international payments. Until 2016, as per RBI regulations AD Category I Banks were authorised to issue FIRCs to exporters for receiving international payments.

For exporters, it served not just as a proof of foreign transfers but also as a key document for claiming export-related incentives, like tax benefits and Duty drawbacks.

In 2016, the Reserve Bank of India introduced the <a href="https://edpms.rbi.org.in/edpms/faces/pages/login.xhtml" target="_blank">Export Data Processing Management System (EDPMS</a>) to digitize and streamline all export-related data. With this shift, the RBI updated its <a href="https://fedai.org.in/pdf/Circular%20Letter%20No_16_2016_17_OCT_FAQs_EDPMS.pdf" target="_blank">guidelines,</a> instructing banks to stop issuing FIRCs (Foreign Inward Remittance Certificates) for foreign currency received against the export of goods. Instead, banks now provide FIRAs (Foreign Inward Remittance Advice) for export collections.

You might come across different terms like FIRA, FIRS (Foreign Inward Remittance Statement),  or NOC (Non-Objection Certificate), depending on your bank. But don't worry—they all serve the same purpose. Along with proving that you’ve received foreign payment from international clients, FIRAs are crucial for closing EDPMS, receiving export-related benefits and claiming GST refunds.

Authorities still issue FIRCs, but only for specific financial transactions, such as receiving Foreign Direct Investment (FDI) or Foreign Institutional Investment (FII). So, if you're receiving returns from foreign investments, you'll still need a FIRC from your bank.

FIRA is often still referred to by its old name, FIRC. While both documents serve the same purpose, FIRC is technically only issued for returns on <a href="https://www.icicibank.com/business-banking/capital-account-services/fdi" target="_blank">Foreign Direct Investment</a> (FDI )or Foreign Institutional Investment (FII). For all other export collections, FIRA is what you need.

As an exporter, or someone stepping into the world of exports, there's another term you’ll want to understand: eFIRC. At first, it might seem like just the digital version of FIRC or electronic FIRC, and you may even come across platforms that refer to digital FIRA or FIRC as eFIRC. However, that interpretation isn’t entirely accurate. Let’s take a moment to clarify what eFIRC actually is:&nbsp;

Let’s break this down with an example:

Imagine you export handicrafts overseas and have accounts with two banks in India, Bank A (your main bank) and Bank B (secondary bank). You use your main bank, Bank A, to handle your export paperwork. However, you receive the foreign payment in your secondary account with Bank B. Bank A has proof that you exported goods, but no record of the payment being received.

An eFIRC acts as the go-between in this scenario. Bank B, which received the payment, will issue an eFIRC for Bank A to close the Shipping Bill (for goods) or SOFTEX (for other transactions) on EDPMS. Bank A can then view the eFIRC number on the EDPMS platform and close the record after with eBRC is generated.&nbsp;

While talking about eFIRC, we discussed how exporters need to submit their export details and documents to update their EDPMS records and receive an eBRC. Now, let's dive into what a bank realisation certificate or BRC  is.

BRC or its digital version <a href="https://www.skydo.com/blog/what-is-e-brc" target="_blank">eBRC</a> is another important regulatory compliance document that is relevant for exporters, particularly goods and software exporters covered under SOFTEX. e-BRC is a digital certificate issued by a bank that serves as proof that an exporter has received payment against the specific goods or services sold abroad. e-BRC makes it easier to demonstrate your earnings, access government benefits, and file taxes.&nbsp;

So, now it begs the question: what is the difference between BRC and FIRC? Both of them seem to serve the same purpose of being proof of international payments. Now, while there’s some truth to it, there are some key differences between the two:

We understand that navigating through these complex compliance requirements can be a challenge even for the most seasoned exporters. This simple decision tree will help you understand which documents you will need under different circumstances.&nbsp;

eFIRC, FIRC and BRC: Understanding the Key differences

We have gone through each of the three concepts individually to get a better grasp of them. Now let’s quickly compare the three to understand how exactly they are different from each other:

With cross-border trade on the rise, staying compliant and secure is more important than ever. But at Skydo, we want you to focus on growing your business, not stressing over compliance.&nbsp;