As an Indian exporter, navigating the complexities of international transactions and compliance can feel like solving a complex puzzle. Today, we'll explore a crucial piece of that puzzle: FIRC

FIRC full form is Foreign Inward Remittance Certificate. It is a document issued by banks as proof of receiving international payments. Over the years, regulations around FIRC have changed significantly, creating confusion and mystery around this important document. Let's clear the air and decode the what, who, and why of FIRC.

FIRC or Foreign Inward Remittance Certificate serves as a proof of foreign money transfer for exporters in India. Until 2016, <a href="https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/1061.PDF">AD (Authorised Dealer) Category I Banks</a> were authorised to issue FIRCs to exporters for receiving payments from foreign sources. This document was essential for exporters to obtain after each cross-border payment. It served not only as proof of payment receipt but also as a crucial document for claiming export-related incentives, such as tax exemptions on foreign currency payments received in India.

As we've covered, the full form of FIRC is Foreign Inward Remittance Certificate and for a long time it served as proof of export income from abroad. However, with changing regulations, the function of FIRC has also changed significantly. Let's take a look:

FIRA is often still referred to by its old name, FIRC. While both documents serve the same purpose, FIRC is technically only issued for returns on&nbsp;Foreign Direct Investment (FDI )or Foreign Institutional Investment (FII). For all other export collections, FIRA/BIRC is what you need.

For clarity, we'll use the term FIRC moving forward, but it refers to FIRA throughout.

Anyone receiving foreign payments needs FIRC.&nbsp; Beyond goods and service exporters engaging in international trade, many individuals and entities may receive international payments without realising it.&nbsp;

Overall, the following typically require a FIRC:

Beyond compliance, here’s why FIRC is crucial for exporters:

FIRCs are issued by AD Category I banks. You can contact your bank to get your FIRC after receiving your foreign payment. <a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online">Alternatively, you can also use platforms like Skydo to get your FIRC instantly after every payment.&nbsp;</a>

Who Needs FIRC and Why It’s Important for Exporters?

FIRC (Foreign Inward Remittance Certificate) is essential for anyone receiving foreign payments, including:

Exporters, in particular, rely on FIRC for two key reasons:

FIRC is issued by Authorized Dealer (AD) Category I banks, and businesses can obtain it directly from their bank. However, it is usually a cumbersome process requiring multiple follow-ups and most banks charge around INR 500 to issue each FIRC.&nbsp;In contrast, platforms like Skydo offer a fast, hassle-free solution, providing an instant FIRC for free after every foreign payment—no manual requests, no extra costs.

This is a sample FIRC document. All crucial remittance details have been masked for security purposes. Now let’s break the content of a FIRC down: 

Receiving your export payment directly through your bank can make obtaining an FIRC a lengthy process. You need to submit a request to the bank, and the bank typically takes 7-15 days to provide the FIRC. You may also need to follow up multiple times, and banks often charge at least INR 400 to issue the FIRC, depending on the institution.

<a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online">Getting a FIRC</a> might sound like a hassle, but with Skydo, it's a breeze. Our fully automated payment system along with built-in partnerships with banks, ensures effortless compliance with RBI guidelines, without needing any manual intervention.

When you receive an export payment through Skydo, we automatically generate the required FIRC for you at no extra cost. Just log into our user-friendly dashboard, and you'll find your FIRC ready to download, complete with all the details you need. 

In conversations around FIRC, there are a few more terms that get frequently mentioned, one of them being eFIRC. So what exactly is <a href="https://www.skydo.com/blog/efirc-firc-brc-essentials-differences">eFIRC?</a>

What is the difference between eBRC and FIRC?

Generally speaking, e-BRC applies mostly to goods and software exporters (under <a href="https://stpi.in/en/home?no_follow=true/">STPI</a>). If you are one of them, you can use this simple decision tree to understand which documents you will need:

Exporting goods and services is considered Zero-Rated Supply, meaning it is subject to 0% GST. However, to claim a GST refund for the input tax credit, exporters must provide the required documents including FIRC. These documents authenticate that the business is claiming a refund because it exported services and couldn't offset its input tax credit as it would in normal domestic business. Without FIRC, claiming a GST refund may not be possible

As we surge in cross-border transactions, ensuring compliance and safeguarding against illicit activities has become a pressing concern. However, at Skydo, we believe your focus should be on advancing your business, not on grappling with compliance challenges.

With Skydo, enjoy seamless international payments, delivered promptly and without any hidden fees. But that's just the beginning! Every time you receive a cross-border payment, an auto-generated FIRC is readily available for you to download, relieving you of compliance burdens so you can devote your energy to what truly matters: driving your business forward.

FIRC full form is Foreign Inward Remittance Certificate. Learn what FIRC is, its importance for exporters and freelancers, and how to obtain it easily

FIRC: Full form, meaning and RBI guidelines

Dive into the world of FIRC. Explore the full form, importance, and process of obtaining FIRC for your international transactions

Foreign Inward Remittance Certificate (FIRC): Full form, meaning and RBI guidelines

Prashanth

small_63aec75c493ff751315d72ac_63948a436dc07c0bec0374ea_uA3i3IUVLPHk_-xjAlW9Z7bxKaOLRCylGX1byeHyzyE.png

thumbnail_63aec75c493ff751315d72ac_63948a436dc07c0bec0374ea_uA3i3IUVLPHk_-xjAlW9Z7bxKaOLRCylGX1byeHyzyE.png

Prashanth Kumar

Selecting the correct purpose code for international transactions is vital for complying with Reserve Bank of India (RBI) and FEMA (Foreign Exchange Management Act) regulations. The P1006 purpose code is specifically used for businesses that offer business consultancy, management consultancy, or public relations services to foreign clients. This code ensures proper classification of inward remittances, aiding compliance with regulatory guidelines and smooth flow of foreign funds into India.

The P1006 purpose code is used for transactions related to the provision of business services, including management consultancy and public relations. This code is used when an Indian company or individual receives payments from foreign clients for offering professional services, such as business strategy consultation, management advice, or PR services. Properly classifying the inward remittance with the P1006 code ensures that the transaction is recorded correctly and reported to the RBI.

When foreign exchange inflows are categorised under this purpose code, they comply with both <a href="https://www.rbi.org.in/commonman/English/Scripts/Notification.aspx?Id=1410?no_follow=true">RBI guidelines</a> and <a href="https://enforcementdirectorate.gov.in/fema?no_follow=true">FEMA regulations</a>, ensuring legal and regulatory clarity for businesses.

Importance of P1006 Purpose Code in Inward Remittance

The P1006 purpose code plays a crucial role for businesses involved in consultancy and PR services. By assigning the correct purpose code, such as P1006, you ensure that the payments received from foreign clients are classified appropriately under RBI guidelines. This classification is critical for inward remittances related to business services, preventing any legal complications.

Whether you’re a management consultant, a business strategist, or a public relations professional offering services to international clients, choosing the P1006 purpose code is essential for processing the payments efficiently. By doing so, you can avoid delays in foreign exchange transactions and ensure that all inward remittances are routed and recorded accurately.

Understanding Purpose Codes: Beyond P1006

<a href="https://www.skydo.com/blog/what-is-purpose-code-and-why-is-it-required#process-of-selecting-the-right-purpose-code">Purpose codes</a>, such as P1006, are part of a broader system that helps categorise all kinds of cross-border transactions. These codes are designed to provide clarity on the nature of international payments, helping the RBI monitor and regulate the inflow of foreign exchange into India. By assigning the right code, businesses and individuals ensure that their transactions are reported correctly, allowing smooth foreign currency movements under FEMA regulations.

While the P1006 code applies specifically to consultancy and PR services, other purpose codes apply to different types of transactions, such as exports of goods, software services, or investments. Selecting the correct code prevents misreporting and ensures that the transaction complies with Indian regulatory frameworks.

How Do You Choose the Right Purpose Code for Your Transaction?

Choosing the appropriate purpose code is essential for ensuring that your inward remittance complies with RBI guidelines. For businesses providing consultancy or PR services, the P1006 purpose code should be used when receiving payments from foreign clients for services rendered.&nbsp;

Before you finalise your remittance, confirm the nature of the transaction and ensure that the purpose code matches the services provided. Incorrect purpose code selection can lead to delays, misreporting, or even regulatory penalties. If you’re uncertain about which code applies to your transaction, consult your bank or a financial advisor to confirm the correct code. You can also check out our <a href="https://www.skydo.com/blog/rbi_purpose_code_for_inward_remittance">guide</a> on selecting the right purpose code for your business.&nbsp;

By ensuring the proper documentation—such as contracts or invoices for services rendered—is provided, you can facilitate a smooth remittance process.

Conclusion: Ensuring Compliance with the P1006 Purpose Code

The P1006 purpose code is essential for businesses offering consultancy, management, or PR services to international clients. By choosing the right code, you ensure that your transaction complies with RBI and FEMA regulations, and that the inward remittance is routed correctly. Always confirm that the transaction details and purpose code align with the services provided, ensuring a smooth and compliant transfer of foreign exchange into India.

large_P1006

medium_P1006

small_P1006

thumbnail_P1006

P1006

When processing international transactions, especially those related to exports, selecting the correct purpose code is crucial for ensuring compliance with the Reserve Bank of India (RBI) and FEMA (Foreign Exchange Management Act) guidelines. The P0102 purpose code is specifically designated for the realisation of export bills related to goods exported and paid for in full. Understanding when and how to use this code is essential for smooth foreign exchange inflows and legal compliance.

The P0102 purpose code is used when Indian companies export goods and receive payments in full against the export invoice. This code specifically applies when the foreign client has received the shipment, and the exporter is realising the bill amount. It categorises the inward remittance as an export payment, ensuring that the transaction is correctly recorded and reported to the RBI. Properly classifying this remittance using the right purpose code ensures compliance with both FEMA and <a href="https://www.rbi.org.in/commonman/English/Scripts/Notification.aspx?Id=1410?no_follow=true">RBI guidelines</a>, streamlining the flow of foreign exchange into India.

Importance of P0102 Purpose Code in Inward Remittance

While the P0102 purpose code is specifically for export payments, purpose codes are a broader system designed to categorise various types of international transactions. Each code corresponds to a specific type of transaction, helping the RBI track and monitor the inflow and outflow of foreign exchange in compliance with <a href="https://enforcementdirectorate.gov.in/fema?no_follow=true">FEMA regulations</a>.

For instance, while P0102 applies to exports of goods, there are <a href="https://www.skydo.com/blog/rbi_purpose_code_for_inward_remittance">other codes</a> designated for transactions related to services, personal remittances, or foreign direct investments. Selecting the appropriate code ensures that the remittance is routed correctly and avoids delays or complications in the transfer process.

Choosing the wrong code can lead to misreporting, which may result in regulatory scrutiny or even fines. Hence, it is important for businesses to be aware of the different purpose codes and their correct applications.

How to Select the Right Purpose Code for Your Transaction

To ensure your inward remittance is compliant with RBI guidelines, it's essential to choose the correct <a href="https://www.skydo.com/blog/what-is-purpose-code-and-why-is-it-required">purpose code</a> for your transaction. In the case of exports of goods, the P0102 purpose code should be selected only when the payment represents the full invoice value for goods that have been shipped and received by the foreign client. Before initiating the transaction, verify the status of the shipment and ensure that the payment is for the total invoice value as per the export agreement.

If you're unsure about which code to select, consult with your bank or financial advisor. The proper documentation, such as the export invoice and bill of lading, should accompany the remittance process, ensuring transparency and smooth processing. Using the correct purpose code helps avoid regulatory issues and ensures the timely completion of international transactions.

Conclusion: Ensuring Compliance with the P0102 Purpose Code

The P0102 purpose code is essential for Indian exporters who receive full payments for goods sent to foreign buyers. By selecting the correct code, you ensure that your transaction complies with RBI guidelines and supports the smooth flow of foreign exchange into India. Always verify the shipment and payment details before finalising your remittance to avoid any penalties or delays. Selecting the right purpose code simplifies the inward remittance process and guarantees compliance with both FEMA and RBI regulations.

large_P0102

medium_P0102

small_P0102

thumbnail_P0102

P0102

Accurately classifying international transactions is crucial for exporters to comply with RBI and FEMA regulations. The P0103 purpose code is used when businesses receive advance payments for goods that will be shipped later. This guide will walk you through the role of the P0103 code, its importance in inward remittance, and how it supports compliance with RBI guidelines.

The P0103 purpose code applies when Indian businesses receive advance payments from foreign clients against export contracts. This means the exporter receives the funds before the goods are shipped. The foreign exchange inflow is categorised under this code to ensure that the remittance is properly reported to the RBI as an advance against goods exports.

Using the right purpose code, such as P0103, helps businesses comply with Indian regulations and avoid issues during the remittance process. If you’re new to how these codes work, you can explore <a href="https://www.skydo.com/blog/what-is-purpose-code-and-why-is-it-required">what purpose codes</a> are to get a deeper understanding of their significance.

&nbsp;Importance of P0103 Purpose Code in Inward Remittance

The P0103 purpose code ensures that advance payments for exports are reported correctly under RBI guidelines. This code is essential for businesses that need to receive funds upfront to finance production or shipping. Proper classification helps avoid delays in the remittance process and ensures compliance with FEMA regulations.

Using the P0103 code ensures that the payment is recognized as an advance for future export, enabling businesses to access their funds efficiently. Whether it’s for procuring raw materials or manufacturing, having the funds before shipment ensures smooth operations and better financial planning.

Understanding Purpose Codes: Beyond P0103

Purpose codes like P0103 are essential for tracking cross-border transactions. They help the RBI monitor foreign exchange inflows and ensure compliance with regulations. While P0103 is used for advance receipts against export contracts, other codes apply to various types of transactions, such as exports of services, personal remittances, or consultancy services.

If you need to explore other relevant codes for your transactions, check out this <a href="https://www.skydo.com/blog/rbi_purpose_code_for_inward_remittance">list of purpose codes and guide on finding your purpose code</a> to identify the correct one. Choosing the wrong code could lead to misreporting, resulting in penalties or delays. Therefore, understanding the system of purpose codes is vital for seamless cross-border financial operations.

Selecting the appropriate purpose code ensures that your inward remittance aligns with RBI and FEMA guidelines. If you’re receiving advance payments from a foreign client for goods that will be exported later, the P0103 purpose code must be used.

Before finalising your transaction, confirm the type of remittance and ensure it matches the purpose code. If the advance payment relates to a service or partial shipment, a different code might be applicable. Proper documentation, such as the export contract, should accompany the payment to avoid discrepancies or delays.

If you’re unsure which purpose code to use, consult with your bank or a financial expert to avoid errors. Misusing codes can cause processing delays or trigger regulatory scrutiny.

Conclusion: Ensuring Compliance with the P0103 Purpose Code

The P0103 purpose code is critical for businesses that receive advance payments for goods exports. By using this code, exporters ensure that their transactions comply with RBI and FEMA regulations. Always confirm that the transaction aligns with the P0103 code and maintain proper documentation to avoid delays or penalties. Selecting the right purpose code ensures smooth financial operations and transparent foreign exchange inflows.

large_P0103 purpose code

medium_P0103 purpose code

small_P0103 purpose code

thumbnail_P0103 purpose code

P0103 purpose code

When you export from India, regardless of the product or service, the invoice you send matters, not just for your client but also for GST compliance, customs documentation, and foreign exchange tracking.&nbsp;

One field that often confuses many new exporters and freelancers is the HSN code (also known as Harmonised System of Nomenclature). You may wonder:&nbsp;

Will it impact my GST (Goods and Services Tax) refund?

This blog clearly breaks down the concept of HSN code, the importance of HSN, and provides action steps to help you prepare your export invoices correctly and avoid delays.

What Is the Full Form of HSN? (And Why It Exists)

HSN full form is Harmonised System of Nomenclature. It's a globally accepted uniform classification system that identifies and categorises goods for customs and GST. It helps freelancers and exporters receive payments from abroad without unnecessary delays.

HSN came into effect in 1988, developed by the <a href="https://www.wcoomd.org/">World Customs Organization (WCO)</a>, and is now used by over 200 countries, including India.&nbsp;

If you are not familiar with the term HSN and its meaning, let us break it down for you:&nbsp;&nbsp;

For Indian freelancers and exporters, HSN codes are used in GST filings, export invoices, and most importantly, the documentation your client's bank needs to process your payment.&nbsp;

How to Read an HSN Code: Meaning of All 4, 6, and 8 Digits

In India, you need to use 8-digit HSN codes, where the first two digits represent the relevant HSN chapter, the next two are the heading, the following two are the subheading, and the last two digits are the customs tariffs.

Let us break down the digits of the HSN code 22021010&nbsp; for you:&nbsp;

The best part is that the HSN number speaks the same language everywhere, whether you're sending website designs to a startup in Berlin or software code to a company in New York. 

Your invoice looks professional, your payment gets processed without question in a systematic manner, and you avoid those dreaded "clarification needed" emails that delay your money.

HSN vs SAC Code – Which One Applies to You?

This is a common confusion, especially among freelancers and SaaS companies. Here's the simple breakdown of HSN code list:

But you'll use HSN codes instead if you're shipping physical products - handmade jewellery, organic spices, or textile products.

💡Quick tip: All SAC (Service Accounting Code) codes start with "99"; that's your first clue you're dealing with services. The eight digits of the correct HSN code are mandatory for exports and imports, while SAC codes are 6 digits and mandatory for service providers with a turnover above ₹5 crore.&nbsp;

When Are You Required to Use HSN or SAC in Export Invoices?

You must mention the HSN or SAC code in your export invoice if:

The GST portal doesn't auto-fill this stuff for you, and missing it means your refund application sits in "pending clarification" limbo.

<a href="https://www.gstn.org.in/assets/mainDashboard/Pdf/GST%20e-invoice%20System%20-%20FAQs.pdf">For smaller freelancers</a> (under ₹1.5 Cr turnover): Small taxpayers with an annual turnover below Rs. 1.5 crore are exempt from mentioning the HSN code in their invoices and returns by the tax authorities. But if you're exporting services and want GST refunds, you'll likely need these codes anyway for zero-rated supply claims.

<a href="https://eztax.in/gst/gst-rate-hsn-sac-finder">The penalty reality</a>: A penalty of Rs 50000 (Rs 25000 under CGST and Rs 25000 under SGST) would be levied for not mentioning HSN/SAC or wrongly mentioning it in GST Returns and Invoices used for taxation purposes.

Missing or using an incorrect HSN/SAC code can cause rejections at customs, hold up your client's payment processing, and trigger those dreaded "document discrepancy" emails from banks.

How to Find the Right HSN or SAC Code for Your Business

Start by typing a simple description of what you're selling. The revamped Search HSN tool algorithm is based on Artificial Intelligence and Machine Learning linked with the e-invoice declaration database, so it learns from other taxpayers' use.

Here are some commonly used codes for Indian exporters that play a crucial role in your tax invoicing process:

Most freelancers fall under 998313 (IT consulting) or 998314 (software development). If you're doing social media management, SEO, or digital marketing campaigns, 998365 is your go-to for advertising services.

💡Pro tip: If you're doing mixed work - like building a website AND doing digital marketing for the same client - use 998314 for the development part and 998365 for the marketing part.&nbsp;

Don't try to fit everything under one SAC code; that's how you'll end up with GST notices asking for "clarification."

The GST portal's search is quite intelligent now. Type "web design" and it'll suggest 998314. Type "social media marketing" and you'll get 998365.&nbsp;

Where to Put the HSN/SAC Code in Your Invoice (Export-Focused)

Here's the practical placement guide that matters for getting your payments processed:

Mention it next to each line item in the invoice&nbsp; You can add an HSN/SAC code for each line item by clicking on the Plus sign at the line level.

Include it in shipping bills and customs declarations&nbsp; All eight digits of the HSN code are mandatory in case of export and imports under the GST.

A mismatch can result in refund hold-ups or compliance notices.

Real-world example: Suppose you're billing a client for website development. In your export invoice, you'll show:

Line 1: Website Development Services - SAC 998314 - ₹1,00,000

This same SAC code (998314) must appear in:

Taxpayers will see alert messages if there is a mismatch between the values reported in Table 12 and other tables of GSTR-1.&nbsp;

Beginning January 2025, the third phase of HSN validation will become effective, further emphasising precise HSN code reporting for businesses. The system now auto-validates everything, so those minor inconsistencies that used to slip through? Not anymore.

💡Pro tip: Set up your invoicing software to auto-populate the same HSN/SAC code across all documents. Most accounting software, like Zoho Books or ClearTax, allows you to auto-populate HSN/SAC codes when you create transactions. It's worth the setup time to avoid compliance headaches later.

Use the same code everywhere, every time. Your future self (and your CA) will thank you when refund season comes around.

Here are the mistakes that'll cost you time, money, and sleep:

Leaving the HSN/SAC field blank, especially in zero-rated export invoices&nbsp;

No, a GST bill will not be valid without an HSN code for the tax administration. This is non-negotiable for exports. Freelancers can lose weeks chasing down stuck payments because they left this field empty.

Using incorrect codes based on guesswork or copying other businesses&nbsp;

Just because your friend uses SAC 998313 for "web development" doesn't mean it's right for your mobile app development work (which should be 998314). The GST rates portal now auto-validates everything, so guesswork gets caught instantly.

Using HSN when you're exporting services (should use SAC)&nbsp;

HSN codes are used to classify goods, whereas SAC codes are used to classify services. Using SAC codes to export IT services, digital marketing, or any other service. HSN is only for physical goods.

Not updating codes when your product/service offering changes&nbsp;

I started as a freelance writer (SAC 998319 - other professional services) but am now developing websites. Update to SAC 998314. The system tracks everything, and inconsistencies trigger compliance notices.

Simplify Export Payments with Skydo&nbsp;

Getting paid for your exports shouldn't cost you thousands in bank fees and poor exchange rates. Banks charge 1.2% hidden FX margins, PayPal takes 8.7%, and getting FIRA certificates is a nightmare.

This is where you need a platform like Skydo.&nbsp;

On a $7,000 payment, you'll receive ₹5,96,680 vs ₹5,89,269 from banks. That's ₹7,400+ more in your pocket.

Whether you're freelancing, running an agency, or selling on Amazon Global, keep more of what you earn.

<a href="https://www.skydo.com/">Get started with Skydo</a>!

large_HSN full form

medium_HSN full form

small_HSN full form

thumbnail_HSN full form

HSN full form

Imagine you’re an international buyer,&nbsp; say, a U.S. company, and your Indian supplier has sent an invoice asking you to pay into a “Skydo Virtual Account” instead of a traditional Indian bank. It’s natural to wonder: Is this safe and legal? The short answer is yes. 

In fact, you’d be in good company: Amazon, Stanford University, Microsoft, and many others already use Skydo’s <a href="https://www.skydo.com/blog/virtual-account-numbers">virtual accounts</a> to pay their Indian vendors. Skydo’s virtual accounts are simply local bank accounts set up for each currency (USD, EUR, CAD, SGD, etc.) and are backed by real regulated banks. Paying into a Skydo account means you’re actually sending money to a major bank (in the U.S., Europe, Singapore, etc.), not into some anonymous wallet.

In practice, you wire dollars to a Community Federal Savings Bank (New York) account or send euros to a Barclays<a href="https://www.skydo.com/blog/iban-number-meaning-full-form">/IBAN account,</a> and Skydo’s system credits the Indian exporter and provides them with the required digital paperwork (<a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">the FIRA</a>) for RBI&nbsp; (India’s central bank, regulating the financial system) compliance. This process is faster, cheaper and more transparent than a traditional <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">wire/swift transfer</a>,&nbsp; and it comes with industry-grade security.

How Virtual Accounts Work – Faster, Cheaper, Transparent

A “virtual account” in Skydo’s terms works like this: when your vendor signs up with Skydo, they instantly get bank accounts in 10+ countries (USD, EUR, CAD, GBP, AUD, SGD, etc.). From the payer’s perspective, you just wire money to a normal-looking bank account in your country or region.&nbsp;

Behind the scenes, Skydo’s platform collects that money, converts it at real-time mid-market rates with a minimal fee, and remits INR to the exporter’s Indian account. This avoids the usual multi-bank wire chain and opaque fees of traditional FX. For example, Skydo charges a flat USD $19 for payments up to $2,000, or $29 up to $10,000, with zero hidden markups.&nbsp; The exporter covers the fee, so you can pay the full invoice amount without worrying about extra charges or deductions.

Unlike international wire transfers to Indian bank accounts, payments to a Skydo virtual account are treated as local transfers. That means you skip SWIFT fees, avoid lengthy settlement timelines, and don’t have to deal with repeated follow-ups from your supplier. Funds typically clear within 24–48 hours.

One reviewer of Skydo noted that using it was “an amazing experience … completely hassle free” for international invoicing In short, paying to a Skydo virtual account means your money moves as if it were a local transfer (often clearing in 24 hours) while the exporter still gets the correct tax-compliant confirmation (FIRA) on their end.

Skydo runs on global financial rails, partnering with banks you already know and trust.

For example, <a href="https://www.bankingcircle.com/banking-circle-partners-with-skydo-to-accelerate-cross-border-collections-for-indian-businesses/">Banking Circle (a fully licensed next-generation bank with central bank access in Europe) has entered a strategic partnership with Skydo</a> to expand payment options for UK/EU and&nbsp; Australian clients.&nbsp;

In Asia, Skydo uses accounts at DBS Bank (Singapore). For USD payments, Skydo issues accounts via Community Federal Savings Bank (a New York bank). For Canada, it uses Digital Commerce Bank (a regulated Canadian bank), and for Europe/UK, it taps banks like Barclays and other IBAN providers.&nbsp;

In India, Skydo partners with HDFC Bank (one of India’s largest private banks) to reconcile the rupees on the exporter’s side. It even leverages Currencycloud (a Visa company) for multi-currency accounts.&nbsp; In short, every virtual account is held at a major bank – you’re not sending money into thin air, but into real bank rails.

“We’re constantly in search of global rails that make payments faster, cheaper and more compliant,” says Skydo’s CEO Srivatsan Sridhar, about their Banking Circle tie-up.&nbsp; By “rails”, he means real bank accounts and networks. Thanks to these partnerships, US and European buyers pay in dollars or euros as normal. Skydo’s system handles the rest, offering local payment details for multiple currencies in just a few minutes

Beyond the banks, Skydo invests heavily in security and compliance. The platform is ISO 27001 certified and AICPA SOC 2 compliant, meaning it meets top industry standards for data protection and system reliability. All payment data is encrypted in transit and at rest, with strict access controls. Skydo also requires two-factor authentication on logins and continuously monitors for any suspicious activity.

Skydo’s team (with AI-powered tools) actively flags anomalies in real time: every transaction is screened against AML/KYC rules, and any unusual pattern is immediately investigated. As Skydo notes, “if anything seems amiss, we immediately investigate to ensure your data’s integrity and our platform’s security” Put simply, paying via Skydo is as safe as any major bank transfer – probably safer, since their systems are built for secure global flows.

Skydo is also fully approved by regulators. It recently received in-principle authorisation from India’s Reserve Bank (RBI) to operate as a Payment Aggregator – Cross Border (PA-CB) entity. This is the same RBI framework that governs other licensed fintechs such as<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives"> PayPal</a>, <a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">Transferwise</a> etc. to process cross-border flows in India; it means Skydo must follow strict rules on transaction security, compliance and audit. In short, RBI has vetted Skydo’s model. By now, Skydo serves over 20,000 Indian exporters and processes hundreds of millions of dollars annually, so your payments become part of a well-established system, not a back-alley workaround.

Key reasons to trust Skydo’s virtual accounts:

In short, paying into a Skydo virtual account is simply a modern, regulated way to move money internationally. It offers the same level of security as wiring to a major global bank, while being far more convenient for both you and the exporter. By using trusted global banks and following global compliance, Skydo makes cross-border invoicing as seamless as domestic payments. The next time an Indian partner asks you to pay via Skydo’s virtual account, you can be confident it’s secure, compliant, and in fact better than the old wire-transfer route.