3A.5
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Foreign Inward Remittance Payment System (FIRPS)
FEDAI has evolved the Foreign Inward Remittance Payment System(FIRPS) to facilitate quick transmission of funds to beneficiaries in India against inward remittances received from abroad through banking channels in rupees as well as foreign currencies. This system is used by authorised dealers for arranging payment of proceeds of personal remittances received from abroad in favour of resident Indians as well as for credit to Ordinary Non-Resident accounts / Non-resident (External) accounts in India of persons of Indian nationality or origin. The essence of the system is that authorised dealers must without delay convert into rupees foreign currency remittances received from abroad in the form of TTs, MTs and Pay Orders and arrange payment of the proceeds by the FIRPS instruments which are encashable at par at all branches in India of all authorised dealers and of other scheduled commercial banks who, though not authorised to deal in foreign exchange, agree to abide by regulations framed by FEDAI, governing issue and encashment of FIRPS instruments. Authorised dealers will be guided by rules and regulations framed from time to time by FEDAI with the approval of Reserve Bank in the matter of issue etc. of instruments under FIRP System. Authorised dealers may also freely employ other methods like money orders, MTs, TTs, drafts and telegraphic pay orders for transmitting inward remittances to beneficiaries but they should bear in mind the need for speed in transmitting funds to beneficiaries, particularly those living in remote parts of the country, in view of the importance attached to inward remittances.