IRM (Inward Remittance Message) is an electronic record created in India’s banking system when a bank receives foreign currency from an overseas sender. It contains details of the incoming payment, such as the amount, currency, remitter, and purpose of the remittance.
IRM is mainly used to track and report foreign inward payments and connect them with the related export or other eligible transaction. Exporters can use the IRM details when completing applicable export realisation and compliance processes through their bank.
How It Works:
- Overseas customers send payment.
- Indian banks receive the funds.
- The bank creates the IRM.
- Payment details are recorded.
- Exporters use the IRM for applicable compliance.
Benefits:
- Records foreign inward payments
- Helps track export proceeds
- Supports banking compliance
- Simplifies payment reconciliation
Example:
An Indian exporter receives $20,000 from a US customer. The bank records the payment through an IRM, which can later be linked to the related export transaction.