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Key Details

  • Issuer: Authorized bank in India receiving the foreign remittance
  • Purpose: Proof of foreign currency inflow into India
  • Format:
    • Traditionally a physical document with a unique serial number
    • Some banks issue e-FIRC (electronic FIRC)
  • Contains:
    • Bank details
    • Remittance amount and currency
    • Sender (remitter) details
    • Beneficiary details
  • Validity: No fixed expiry date, but should be retained for records and audits

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Why is FIRC Required?

FIRC serves as a critical compliance and accounting document.

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Regulatory Compliance

  • Ensures adherence to FEMA (Foreign Exchange Management Act) regulations

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Taxation

  • Acts as supporting evidence of foreign income for tax filings

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Repatriation of Funds

  • May be required when transferring funds back to a foreign country

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Audits

  • Used during statutory and internal audits to verify foreign currency receipts

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When is FIRC Required?

FIRC is commonly required in the following scenarios:
  • Large-value transactions
    • Typically for remittances exceeding INR 50,000
  • Business transactions
    • Exports
    • Professional services
    • Commercial receipts
  • Non-Resident Indians (NRIs)
    • When receiving funds from overseas sources

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How to Obtain a FIRC via Tazapay

To request a FIRC for a payout:
  • Set the firc_required field to true
  • This field must be provided in the bank object inside the beneficiary object

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Important Notes

  • FIRCs are not automatically generated
  • Tazapay requests FIRCs from partner banks and delivers them to customers
  • Issuance timelines depend on the bank
  • Ensure all transaction details are accurate to avoid delays
  • Retain the FIRC securely for future reference

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FIRA for India Payouts

When processing payouts to India, Tazapay generates a Foreign Inward Remittance Advice (FIRA) in compliance with Reserve Bank of India (RBI) regulations.

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Role of Purpose Codes

The Purpose Code selected during payout initiation determines:
  • How the transaction is classified under RBI guidelines
  • The type of FIRA generated
  • Whether the payout is successfully processed or rejected
Important
  • FIRCs and FIRAs are generated strictly based on the Purpose Code selected at the time of processing
  • They cannot be edited, revised, or reissued
  • Incorrect selection may result in RFIs, delays, or rejection by banking partners

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Purpose Codes in Tazapay

  • Tazapay provides predefined Tazapay Purpose Codes (PYRxxx)
  • Each code is mapped to a valid RBI Purpose Code
  • Mappings include restrictions based on:
    • Remitter type
    • Beneficiary type (individual or corporate)
For the complete list, see
Purpose Codes Valid for India Payouts

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Best Practices

To ensure smooth and compliant payouts:
  • Clearly identify the nature of the transaction
    • Goods, software, services, taxes, etc.
  • Select the correct Tazapay Purpose Code (PYRxxx)
  • Avoid generic or approximate selections
  • Verify remitter and beneficiary eligibility
    • Some codes are restricted to individuals or corporates only

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Key Compliance Notes

  • FIRAs are generated only once
  • No edits or re-issuance are permitted after processing
  • Incorrect purpose codes may lead to:
    • Requests for Information (RFIs)
    • Processing delays
    • Payment rejection