In this blog let us discuss the difference between the 2 concepts i.e., bank realization certificate and foreign inward remittance certificate. Frankly speaking, both the certificates are issued by an authorized bank to the customers who receive the funds or trade from foreign countries.
Now let us understand what is bank realization certificate?
Bank realization certificate (BRC) is a certificate that acts as a proof for the foreign export business. This document is very essential for a customer who wants to trade benefits under foreign trade policy. The Indian government handles the trade through the departments such as DGFT, RBI, FEMA, Customs etc.
The documents for BRC consist of the following details:
- BRC number and date
- Status of BRC
- Importer Exporter Code (IEC)
- Name of the exporter
- Bank Code (IFSC)
- Invoice ID
- Bill ID
- Shipping bill number, address, bill date, and currency code
- Date of realization
- Total realized value in INR
- Name of the origin bank (which transact money)
- City and country of the origin bank
So far we discussed the bank realization certificate. Now let us discuss what foreign inward remittance certificate (FIRC) is all about?
When funds are transferred through online payments like eBay, PayPal from foreign countries to India one might have come across the term “FIRC”. The authorized bank that receives the payment in India request for FIRC.
It is a security document that acts as evidence for inward remittance funds which pass into India. An individual recipient in India who receives the funds from overseas through their business or by fund transfer can use this document as evidence. Hence this certificate is very important to get your fund through wire transfer from other countries.
You may ask is there any special fee for FIRC certificate?
Yes, there is some amount of fee that has to be paid by the vendor. It varies from time to time and from bank to bank. It may take about 7-8 working days.
What details does a FIRC have?
- Beneficiary name and account number
- Name and address of the remitter
- Fund sender and receiver addresses
- Mode of payment by the remitter
- Remitters cheque and DD number
- Actual amount of foreign currency
- Date of fund deposit
FIRC is issued by authorized banks for the exchange of foreign funds. Hope after going through this blog you must have got a fair idea about both the concepts and how they differ from one another.