2 B INWARD REMITTANCES, REMITTANCES CARD, FIRC
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Foreign Exchange Facilities for Individuals — Foreign Exchange Facilities for Individuals.
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Free sample — 8 of 66 rapid-fire Q&A cards.
What is an inward remittance in the context of foreign exchange?
An inward remittance is a transfer of funds from abroad into India, received by a resident or non-resident individual through authorized banking channels in foreign currency that is converted to Indian Rupees.
What is the full form of FIRC in foreign exchange transactions?
Foreign Inward Remittance Certificate issued by authorized dealer banks.
Which regulatory framework governs inward remittances into India?
Inward remittances into India are governed by the Foreign Exchange Management Act (FEMA), 1999 and the regulations and directions issued by the Reserve Bank of India (RBI) thereunder.
Which RBI scheme allows overseas entities to remit money to Indian beneficiaries through authorized banks?
Rupee Drawing Arrangement (RDA) and Money Transfer Service Scheme (MTSS).
Is there any limit on the amount that can be received as inward remittance into India?
There is no upper limit on the amount that can be received as inward remittance into India; however, amounts exceeding USD 10,000 (or equivalent) in cash and monetary instruments must be declared at the point of entry.
What is the maximum individual remittance allowed under MTSS per transaction?
USD 2,500 per transaction under MTSS guidelines.
What is a Foreign Inward Remittance Certificate (FIRC)?
A FIRC is a document issued by an authorized dealer bank in India certifying that a specific amount in foreign currency has been received from abroad on behalf of a beneficiary, serving as proof of inward remittance.
What is the annual ceiling on remittances received by a single beneficiary under MTSS?
Maximum USD 30 transactions per year allowed per beneficiary.
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