The digitisation will enable the payment of the FIRC fee via NEFT (National Electronic Funds Transfer) as opposed to the previous process of a demand draft (DD). The new process will enable sellers to receive payments from across the globe and apply for a FIRC online by filling a form on their website.
A FIRC is a document that acts as a testimonial for all the inward remittances entering India. Most statutory authorities accept this document as proof that an individual or a business — such as a limited company, partnership company, sole proprietorship company, and others — has received the payment in foreign currency from outside the country. The certificate can be directly collected by the sellers and freelancers from their beneficiary banks.
In 2017, PayPal had announced a 50% reduction in the FIRC fee and rolled out a process for a consolidated FIRC, the earlier process requiring one FIRC for each transaction.
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