FIRC Not Needed for NRE Account Credits via RTGS/NEFT (Clarification)
Current · Source: Reserve Bank of India · RBI/2010-11/315 · issued 13 Dec 2010 · ~1 min read
Quick answerRBI clarifies that FIRC should not be issued for inward remittances credited to NRE accounts. For remittances received through credit push systems like RTGS, NEFT, NECS, or ECS, no FIRC is required. FIRC is to be issued by the bank that receives the proceeds in foreign exchange and converts foreign currency into rupees.
The rule, in the simplest words
Do not ask for a FIRC (proof of foreign money received) when an NRE (account for foreign earnings) credit comes through RTGS (instant electronic transfer), NEFT (batch electronic transfer), NECS or ECS.
Only the bank that actually gets the foreign currency and changes it into rupees must give a FIRC.
Banks should change their work steps and teach staff to follow this rule, so paperwork is less.
How it plays out — a real example
Rohit, a remittance officer in Mumbai, receives an RTGS transfer that will be credited to a customer's NRE account. He knows no FIRC is needed, so he simply credits the rupee amount and records the transaction, feeling relieved that the process is quicker and smoother.
What changed
RBI issued a clarification in response to member bank queries on issuance of FIRC for inward remittances to NRE accounts received through RTGS, NEFT, NECS, and ECS. The clarification states that FIRC should not be issued against remittance for credit to NRE account, and that FIRC is to be issued by the bank that receives the proceeds in foreign exchange and converts foreign currency into rupees.
What it means for you
Banks must not issue FIRC for NRE account credits through these channels, reducing paperwork and compliance burden. Only the bank that receives the proceeds in foreign exchange and converts foreign currency to rupees is responsible for issuing FIRC, ensuring clarity in remittance processing.
What you must do
Update internal procedures to ensure FIRC is not issued for NRE account credits via RTGS, NEFT, NECS, or ECS.
Train staff handling inward remittances on the correct FIRC issuance rules, especially for NRE accounts.
Ensure that FIRC is issued only by the bank that receives the proceeds in foreign exchange and converts foreign currency into rupees.
Who it affects
Banks participating in RTGS, NEFT, NECS, or ECS, Remittance processing teams
❓ Common questions
When should a bank issue FIRC for inward remittances?
FIRC should be issued by the bank that receives the proceeds in foreign exchange and converts foreign currency into rupees. For NRE account credits via electronic systems, no FIRC is required.
Does this circular apply to all electronic credit systems?
Yes, it applies to RTGS, NEFT, NECS, and ECS as mentioned in the circular.
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/315
DPSS (CO) EPPD No. 1309 / 04.03.01 / 2010-11
December 13, 2010
The Chairman and Managing Director / Chief Executive Officer
of member banks participating in RTGS / NEFT / NECS / ECS
Madam / Dear Sir,
Credit to NRE account through RTGS / NEFT / NECS / ECS - Issuance of Foreign
Inward Remittance Certificate (FIRC)
Please refer to our letter DPSS (CO) EPPD No.327/04.03.01/2009-10 dated August 14, 2009 on the subject. We were receiving references from member banks on issuance of FIRC to the beneficiaries for inward remittance to NRE accounts received through credit push systems like RTGS, NEFT, NECS and ECS. This matter was since examined and the following is clarified :
In terms of para 3.A.6 of Exchange Control Manual read with AD (MA series) circular No. 11 dated May 16, 2000, FIRC should not be issued against remittance for credit to NRE account.
2 Further, if the proceeds of inward remittance received are remitted in foreign currency itself to the beneficiary’s banker, then FIRC is to be issued by the bank which has received the proceeds in foreign exchange, i.e., the bank which converts the foreign currency into rupees is required to issue FIRC.
Yours faithfully
(P. Vasudevan)
Deputy General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/315 · issued 13 Dec 2010. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (Banks participating in RTGS, NEFT, NECS, or ECS, Remittance processing teams), your first concrete step on “FIRC Not Needed for NRE Account Credits via RTGS/NEFT (Clarification)” is: “Update internal procedures to ensure FIRC is not issued for NRE account credits via RTGS, NEFT, NECS, or ECS.” (RBI issued this 13 Dec 2010).
Circular: RBI/2010-11/315 -- FIRC Not Needed for NRE Account Credits via RTGS/NEFT (Clarification)
Issued: 13 Dec 2010
Action required: Update internal procedures to ensure FIRC is not issued for NRE account credits via RTGS, NEFT, NECS, or ECS.
Action required: Train staff handling inward remittances on the correct FIRC issuance rules, especially for NRE accounts.
Action required: Ensure that FIRC is issued only by the bank that receives the proceeds in foreign exchange and converts foreign currency into rupees.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6148&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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