e-mail BRC

Reserve Bank of India (RBI) is expected to issue a standard operating procedure (SOP) for banks to issue proofs of inward remittances for exporters.

Key Points

The Reserve Bank of India (RBI) is expected to issue a standard operating procedure for banks to expeditiously issue FIRC (Foreign Inward Remittance Certificate) and Electronic bank realization certificates(e-BRCS).
This move aims to address the challenges faced by exporters in the rupee-based trading mechanism for foreign trade

What are the issues with FIRC (Foreign Inward Remittance Certificate)?

Various issues are faced by exporters in the rupee-based trading mechanism for foreign trade.
Dne of them being arises when the certificate from one bank is not being sent to another, which hampers the generation of electronic bank realisation certificates (e-BRCS).
This creates a problem for exporters as e-BRCs serve as proof of payment for their exports and make them eligible for benefits under the Foreign Trade Policy.

What is FIRC (Foreign Inward Remittance Certificate)?

FIRC is a document that acts as a testimonial for all the inward remittances entering India.
It has to be acquired by beneficiaries who receive international payments made to India and consists of two forms: Physical and Electronic (e-FIRC).
Most of the statutory authorities accept this document as proof hat an individual or a business, such as a limited company. partnership firm, sole proprietorship firm and others, has received a payment in foreign currency from outside the country.

Electronic Bank Realization Certificate(e-BRC)

An Electronic Bank Realization Certificate(e-BRC) is a vital digital certificate for export businesses.
E-BRCs are issued by banks to exporters as proof of payment that validates their exports and makes them eligible for any benefits under the Foreign Trade Policy.
Businesses availing export benefits under the Foreign Trade Policy (FTP) must produce a valid BRC
It is a vital economic indicator and a source of important financial information.