What is FIRC Full Form in Banking?
The FIRC Full Form in Banking is a Foreign Inward Remittance Certificate. This is an important document that serves as a proof of remittances in banking. When the exported in our country get their payment in foreign currencies, the FIRC document will act as proof of their money transfer. It also behaves like a receipt of proof for the businesses and the exporters stating that they have received a money transfer outside India.
Why is it crucial to get a FIRC in India?
In India, getting an FIRC is crucial as it helps authorities like the Customs Department and the DGFT to track the transactions that people make. As foreign funds generally act like a vehicle for illegal activities, such as money laundering, it is important to keep track of these transactions, and the FIRC certificate behaves like a guard against these legal hassles.
Uses of FIRC certificate:
The FIRC behaves as evidence of receipt of International payments in India. It behaves as a crucial document that the authorities require to claim the export-related incentives. It also behaves like proof of money that a person receives in lieu or by the company that takes hold of the share application.