Is FIRC necessary, if funding agency based in India?

Dear Sir,

If a Funding Agency based in India gives Donation to us in our FCRA Account, since the source of Funding is Foreign based. The transfer of money will be from their FC Account to our FC Account through RTGS. Do we still need the FIRC copy from the Bank? Or, getting a certification from our Funding Agency is sufficient?

Looking forward for the response.

Regards
Pragya Sekar

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6 Responses to Is FIRC necessary, if funding agency based in India?

  1. Hari Kishore Bajpai says:

    Dear Sir,

    Hi, HOW R U.

    Sir, I think you need to establish foreign origin of funds received in your FC Account.

    Even in case any NRI donating from his personal account you need to have his passport details for the purpose.

    As such FIRC is definetly required from your bank as well as from the Bank you are receiving the amount.

    Even otherwise no harm in having better proof, which is in your favour.

    Hope the above shall solve the problem.

    THANX & REGARDS

    (Hari Kishore Bajpai)

  2. Pragya Thakur says:

    Thank you all for your valuable advice.

    Regards
    Pragya

  3. Deepak Bansal says:

    FIRC – Issuance

    FIRC is an instrument which is issued by Fx Dealer / banker who has first converted fx in India on behalf of the recipient. FIRC becomes very important where certain export incentives are allowed only when the exporter presents these FIRC in originals. Therefore, Banks are required to issue in some cases FIRC on security papers. Presently FIRCs are being issued for most of the transactions covering foreign inward remittances. Instead FIRCs may be issued at the specific request of the beneficiary only in cases where such FIRCs are needed either for utilisation at a later date for repatriation of the proceeds or for providing as documentary evidence for availing of certain benefits or fulfilling certain obligations to Regulatory Authorities/Government bodies. Accordingly, member banks may consider issuance of FIRCs in its present form on security stationery only in respect of the following cases:

    a. Advance Payment for Exports.
    b. Receipt of export proceeds by an AD Bank other than the one who handles/handled GR Form.
    c. Inward remittances covering FDIs/FIIs.

    In cases of FCRA remittances, FIRC is to be issued only when there is a foreign exchange and not foreign contributions has first landed in India.

    Thanks
    _________________________
    Deepak Bansal
    (Partner)
    Subhash Mittal & Associates
    Chartered Accountants

  4. Subhash Mittal says:

    Dear Pragya,

    FIRC stands for Foreign Inward Remittance Certificate. As the name full name suggests this certificate is to be issued by Bankers only when there is Foreign Remittance being received in your Bank Account. ‘Foreign Contribution’ as defined under FCRA and ‘Foreign Remittance’ as understood by RBI/Bankers are different, and hence in the situation explained by you the banker cannot issue an FIRC even if s/he wanted to.

    warm rgds

  5. B V Soma Sastry says:

    Dear Pragya,

    In such cases you can get a credit advice from the bank. The banks have prescribed format for the same where all the details of the grant is mentioned.

    Thanks and regards,

    B V Soma Sastry

  6. Rajan says:

    Dear all,

    I don’t think so it is a mandatory requirement but still it is necessary to get FIRC in case if one have to refund the unutilized grant it is one important/mandatory document for transfer of money.

    Thanks

    Rajan

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