BANKING AFFAIRS

Detailed explanation-1: -The money one receives in an Indian bank account from abroad is called an inward remittance, and foreign inward remittances come under the governance of the FEMA or the Foreign Exchange Management Act.

Detailed explanation-2: -Key Takeaways. Foreign remittance is a transfer of money from a foreign worker to their family or other individuals in their home countries. Foreign remittances transferred back to a migrant’s home country are typically used for living expenses, such as food and clothing.

Detailed explanation-3: -There are two main types of FIRCs. A physical Foreign Inward Remittance Certificate is simply a physical representation of the FIRC. An e-Foreign Inward Remittance Certificate acts as an alternative to the physical FIRC.

Detailed explanation-4: -Money received in an Indian bank account from relatives based abroad is known as inward remittance, which is governed by the Foreign Exchange Management Act (FEMA). The amount is not taxable only if it is for meeting living expenses, medical treatment, education, donations, travel expenses, and gifts.

Detailed explanation-5: -RBI Guidelines for Inward Remittance You can send money to India only to pay for medical treatment, education, travel expenses, investments, financial support, donations, living expenses or as a gift. 2. For every inward foreign remittance, the recipient bank must issue a Foreign Inward Remittance Certificate (FIRC).