RECEIVE MONEY

The RBI regulations for inward remittance differ slightly from those for outbound transfers. India is one of the nations that receive the greatest amount of remittances. An individual or a company may receive money from abroad for a number of purposes subject to extant regulations. All such remittances are covered under Foreign Exchange Management Act (FEMA).

The documentation and regulatory requirements depend on the purpose for which the remittance is received. The remittance received may be for trade purposes; a company may receive payment for exports made by them. In this case, there are specific regulatory/compliance requirements that must be met, and certain documentation will need to be provided. Then there are retail purposes where remittance from abroad may be received for family maintenance, gift, dividends on investment and so on. Here regulatory/compliance requirements are less stringent, but some specific documents need to be submitted.

Inward remittance may also be received for investment or borrowing purposes. Again, there are specific regulatory requirements that must be met, and certain documentation will need to be provided. FIRC or Foreign Inward Remittance Certificate, is a certificate required under the regulatory process for specified cases. This is essentially a receipt that banks issue to show that money has been transferred from abroad to India and the same has been handled/converted by them. They are not issued if the remittance is made to Non-Resident accounts and also if the recipient bank is the same who have handled the export documents. We have provided complete knowledge about the documents along with the complete list of purposes and purpose codes. The advisory for different types of transactions as well as the respective regulatory requirements may be accessed at our site too.