Updated: 14th November 2025 Foreign Inward Remittance Certificate (FIRC) is a key term for anyone in India receiving payments from abroad,&nbsp; be it exporters shipping goods overseas or freelancers offering services to international clients.

Are you dealing with international payments and confused by terms like FIRC? If you’ve ever received money from abroad for your business or freelance work, you might have been told to get a FIRC. Don’t worry – you’re not alone in finding this acronym puzzling. In this conversational guide, we’ll demystify Foreign Inward Remittance Certificates (FIRC) – explaining what they are (including the full form and meaning), why they’re important, who needs them, and how to obtain one. By the end, you’ll know exactly why FIRC matters for Indian exporters, freelancers, small businesses, and even accountants handling cross-border transactions. Plus, we’ll share tips on making the whole process much easier (hint: there are modern solutions that do the heavy lifting for you). Let’s dive in!

Let’s start with the basics: FIRC stands for Foreign Inward Remittance Certificate. It’s essentially an official document from an Indian bank that confirms you’ve received a payment from abroad. Think of it as a receipt or proof of an inward remittance (foreign money transfer) into your Indian bank account.

In practical terms, a FIRC contains details of the foreign payment you received – such as the amount in foreign currency and INR, who sent the money (the sender’s name and country), who received it (your name/business name), the date, and the purpose of the payment. It’s issued by your bank (specifically, banks authorized to deal in foreign exchange, known as AD Category I banks) whenever you receive money from overseas.

In simpler words: if a client overseas wires you funds for an export or a freelance project, the FIRC is the document from your bank saying “Yes, we’ve got the money from abroad, and here are the details.” It’s an official proof that foreign funds landed in India into your account.

Quick note: Sometimes people use “FIRC” loosely to also refer to similar documents like a foreign inward remittance advice (FIRA).&nbsp; Essentially, all these serve the same purpose – proving that an international payment was received. We’ll explain the differences in a bit, but generally if someone asks for a FIRC, they mean the proof of a foreign payment credit.

Whether you are an Indian exporter, a freelancer providing services globally, or a small business owner, obtaining a FIRC (or its equivalent advice) for your foreign earnings is very important. Here are the key reasons why a FIRC matters so much:

In summary, a FIRC is more than just a piece of paper. It’s crucial for compliance, unlocking financial benefits, and keeping clean records of your foreign income. In India’s regulated foreign exchange environment, this certificate (or its digital equivalent) becomes a cornerstone for anyone transacting internationally.

Now that we know why it’s important, you might wonder: “Do I actually need a FIRC?” If you fall into any of the following categories, the answer is likely yes:

In a nutshell, any Indian individual or business receiving money from outside India should obtain a FIRC for each such inward payment. This spans everyone from large export firms to freelance graphic designers paid via PayPal. It’s a best practice even if not mandatory in every case, because it’s your safety net and proof if questions arise later.

FIRC in India: RBI Guidelines and the Switch to FIRA

It’s important to understand how FIRCs are handled in India today, because there have been regulatory changes in the past decade. Historically, banks issued a physical FIRC on security paper for every foreign inward remittance received against exports. However, since 2016, the RBI changed the process for most cases. Let’s break down what that means:

You might also have seen the term e-FIRC. This is a bit tricky because e-FIRC isn’t a separate document you receive in hand – it’s more of a concept/number in the background banking systems.

For most small businesses or freelancers who use a single bank (or a single platform) to both receive funds and handle paperwork, you may not need to worry much about the term “e-FIRC” – your bank’s advice and the automated systems take care of it. Just know that it refers to the electronic trail of your remittance in RBI’s systems.

Two acronyms that often come up together in export finance are FIRC and BRC. They are related but serve different purposes, and it’s important not to confuse them:

In simpler terms, think of it as a two-step chain: First, you get the FIRC/FIRA when money comes in. Then, that leads to a BRC which connects the money to a specific export transaction.

For example, suppose you shipped 100 units of a product on a certain date (your shipping bill records this) and later you got USD 1,000 for that shipment. When the $1,000 arrives, your bank gives you a FIRA confirming receipt. You then inform the bank (or it knows via systems) that this $1,000 corresponds to that shipping bill. The bank updates the records and an e-BRC is generated which you can download from the DGFT portal as proof that the export transaction is closed with payment received. Why is BRC needed? Because to claim many export incentives or to fulfill export obligations, you have to show BRCs to the government – it proves you not only exported but also got paid for it.

Bottom line: FIRC (or FIRA) confirms money received; BRC confirms that money was tied to an export. Both are important for exporters of goods (first you get FIRC, then BRC to claim benefits). Freelancers and pure service exporters mostly just handle FIRCs unless they are in scenarios that require reporting exports formally.

&nbsp;You can use this decision tree to decide which one do you need.&nbsp;

FIRC Certificate Format:&nbsp; What Information Does it Include?

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: 

If you’ve never seen a FIRC or FIRA document, you might wonder what it looks like and what details it carries. While formats can vary slightly from bank to bank, a typical FIRC/FIRA document (usually a PDF or letter these days) will include the following key information:

A modern FIRA might not have the word “Certificate” on it, but it contains the same info as the old FIRC. Some banks still title it “Certificate of Foreign Inward Remittance” even if it’s a PDF. In any case, all the above details are what make it valuable – ensure everything matches your expectations when you receive one (more on that in a moment).

How to Obtain a FIRC (Procedure to Get the Certificate)

Obtaining a FIRC or FIRA for a foreign payment is not always automatic – often, you’ll need to request it from your bank. The process can vary slightly by bank, but here’s a general step-by-step guide for Indian businesses or freelancers:

1. Receive the Foreign Payment: This might sound obvious, but you can only get a FIRC after the money from abroad has credited to your bank account in India. So, first step – make sure the funds have arrived. Note down the transaction details like the date of credit, the amount in foreign currency and INR, and any reference number (UTR) if available. This info will be needed for the request.

2. Contact Your Bank to Request the FIRC/FIRA: Reach out to your bank’s branch or your relationship manager and let them know you need a FIRC (Foreign Inward Remittance Certificate) or advice for a particular transaction. Many banks have a specific form or format for this request. Depending on the bank, you might do one of the following:

In your request, you’ll generally need to provide:

Tip: If your bank has a mobile app or online banking, search for terms like “FIRC request” or “Remittance Certificate” – some banks have digitized this. Otherwise, a quick email to your branch manager with the details might do the trick.

3. Provide Supporting Documents (if required): Banks might ask for some documents to ensure the request is legit and to attach as proof of the transaction’s purpose. Common ones include:

Not every bank will ask for all of these – often if the transaction was straightforward and coded correctly, a FIRC request might go through with just the form. But don’t be surprised if they ask for an invoice copy or such, especially for higher amounts or the first time you’re requesting.

4. Pay the Bank’s Fee (if any): Here’s the part not everyone realizes: many banks charge a small processing fee for issuing a FIRC/FIRA. The fee varies by bank but is typically in the range of ₹200 to ₹500 per certificate, plus GST. For example, one bank might charge ₹300 + taxes for each FIRC. Some banks waive it for premium account holders or in special cases, but generally expect a fee. Usually, the bank will deduct this fee from your account or ask you to pay it upfront. When you fill the request form, it might mention the fee or your branch will inform you. (As a rough timeline, after you request, it often takes around 1–2 weeks for the bank to issue the FIRC. Some get it done in just a few days, but don’t bank on it – pun intended!)

Good News: If this process sounds a bit old-fashioned, you’re right – it can be tedious. But lately, some fintech platforms and modern banking services offer FIRA certificates for free and instantly as a perk. (We’ll talk more about that in a moment when discussing easier ways.)

5. Wait for the Certificate to be Issued: Once you’ve submitted the request (and any docs and fees), the bank’s forex operations team will verify the details. They’ll match the info you gave with the actual inward remittance record. If everything checks out, they will generate the FIRC (or FIRA). Nowadays, this is usually a PDF document on the bank’s letterhead with a digital signature, which they might email to you or make available for download (some still might print it for collection at the branch if you specifically need a hard copy). The time frame can vary:

Keep an eye on the email you provided (and check the spam folder just in case, since it’s often an automated email with a PDF attachment).

6. Verify the Details on the FIRC: When you finally receive the certificate/advice, do not skip this step! Carefully check all the details:

If you spot any error (typos in your name, wrong amount, incorrect purpose code, etc.), contact the bank immediately to correct it. It’s important the FIRC reflects the truth of the transaction. Banks can issue an amended FIRC if needed, but you may have to give proof of the correct info (for instance, if your name was spelled wrong, you might send a copy of your PAN or passport; if the amount in INR is off, maybe a statement copy). It’s best to catch errors early and have them fixed, so you don’t run into problems later when using the FIRC for official purposes.

7. Use the FIRC for Your Needs: Once you have the FIRC/FIRA in hand (or in email):

In short, use the FIRC anywhere you need to prove “I got paid from abroad for X purpose.” It’s your golden ticket for compliance and benefits.

8. Remember: One FIRC = One Transaction: If you receive multiple foreign payments, you will generally need to request separate FIRCs for each. Say you’re a freelancer who got five different payments from five clients – you’d have five FIRC documents (and possibly five fees…). Some payment aggregators or services might give a consolidated statement for multiple small payments, but banks usually treat each inward remittance as a separate record and issue individual certificates.

Getting FIRC the Easy Way (Automatic FIRC with Modern Platforms)

At this point, you might be thinking, “Wow, that’s a lot of steps and wait time just to get a certificate!” 🤯 Indeed, dealing directly with banks for FIRCs can be slow and involve charges. Here’s where fintech solutions come to the rescue.

Platforms like Skydo offer a much smoother experience for handling foreign payments. For instance, when you receive an export payment through Skydo, the FIRC (or FIRA) is generated for you automatically – and at no extra cost. It’s basically built into the process. You don’t have to file separate requests or wait weeks. As soon as the payment is received and processed, you can log into your Skydo dashboard and download the remittance advice instantly. All the details (amount, purpose, etc.) are neatly recorded, compliant with RBI rules, without you lifting a finger to request it.

This kind of solution is a game-changer for freelancers and small businesses: you get paid faster (since such platforms often streamline the transfer) and you get the FIRC document instantly for each transaction. No bank queues, no follow-ups, no fees per certificate. If you’re frequently dealing with international clients, using a modern global payments platform can save you a lot of headaches when it comes to compliance paperwork like FIRCs.

Is FIRC Mandatory for GST Refunds and Other Purposes?

One common question that arises is whether having a FIRC is mandatory for certain claims, especially the GST refunds on exports. The short answer: Yes, if you’re claiming a refund or benefit on the basis of an export, you’ll need proof of foreign inward remittance – usually in the form of FIRC/FIRA.

When you export goods or services from India, those exports are considered “zero-rated” for GST, meaning you don’t have to pay GST on the sale. However, you might have paid GST on inputs (input tax credit) and you’d want to get that refunded since your output was zero-rated. To process this refund, the tax authorities require evidence that you indeed received payment in convertible foreign exchange for that zero-rated supply. FIRC is that evidence. It authenticates that the money entered India’s banking system against your export.

Here’s how it typically works for a GST refund on exports:

If you don’t have a FIRC to show and try to claim a GST refund, the claim likely won’t be accepted because you haven’t furnished proof of realization of export proceeds. It’s a critical document for this purpose.

Similarly, for other schemes like certain subsidies or duty credits for exporters, the requirement is often to show the BRC or FIRC to prove that the export was completed monetarily.

For freelancers or service exporters who may not deal with GST refunds (if, say, you’re below GST threshold or exports of services under LUT), it might not feel “mandatory” day-to-day. But consider that under income tax or any scrutiny, you’d still want that FIRC as proof of earnings. Also, tomorrow if you do register for GST and want to claim something, having FIRCs from the past means you’re prepared.

In summary: For compliance and benefits, having FIRCs is effectively mandatory. It’s part of the paperwork you should maintain if you earn in foreign currency. And specifically for claiming GST refunds on exports, a FIRC is usually non-negotiable.

Conclusion:&nbsp; Making FIRC Hassle-Free

Dealing with cross-border payments can seem daunting at first – there’s compliance to consider and extra paperwork like FIRCs to manage. But understanding the ins and outs of FIRC means you’re now equipped to ensure every dollar, euro, or pound you earn overseas is properly documented without stress.

The good news is that you don’t have to wrestle with these processes alone. As the world of international business is evolving, so are the tools to manage it. Your focus should be on growing your business or honing your craft – not on chasing bank certificates. That’s exactly why platforms like Skydo exist: to simplify global payments and the red tape that comes with them.

With Skydo, for example, you can enjoy seamless international payments with no hidden fees, and every time you receive a cross-border payment, an auto-generated FIRC (remittance advice) is instantly available for you. No special requests, no fees per certificate, no delays – it’s just there, ready to download when you need it. This means you remain fully compliant with RBI rules effortlessly, and you can devote your energy to what truly matters: delivering great products or services and scaling your venture.

In conclusion, a Foreign Inward Remittance Certificate is a vital piece in the jigsaw puzzle of doing business globally from India. It ensures your hard-earned foreign revenues are officially recognized and securely in your pocket (or rather, your bank account). By staying informed and leveraging modern solutions, you can turn what used to be a cumbersome process into a minor footnote in your workflow. Happy exporting (or freelancing), and may all your international payments come with an easy FIRC! 🚀

What is FIRC? Learn the full form, meaning, and how Indian exporters & freelancers can get FIRC or FIRA to claim tax benefits and stay RBI-compliant.

FIRC Full Form, Meaning & Guide for Exporters

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

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Prashanth Kumar

Accurately classifying international transactions is essential for staying compliant with RBI and FEMA regulations. The P1401 purpose code is specifically used when receiving payments from abroad for salaries, wages, bonuses, or other compensation for work. In this guide, we’ll break down the importance of Purpose Code P1401, its role in inward remittances, and how it ensures smooth compliance with RBI guidelines.&nbsp;

Purpose Code P1401 is used when receiving payments from abroad for compensation, such as salaries, wages, bonuses, or other forms of remuneration for work. For example, if you’re a remote employee working for a company in the US and receive salary or bonus payments directly from them, these transactions fall under P1401.

This code ensures that such remittances are accurately reported to the RBI as Compensation of Employees, keeping your transactions compliant with Indian regulations.

Using the correct purpose code, like P1401, not only ensures smooth reporting but also helps you avoid delays or complications during the remittance process. If you’re new to purpose codes, explore our guide to learn more about their role in simplifying cross-border transactions.

&nbsp;Importance of &nbsp;Purpose Code P1401 in Inward Remittance

Purpose code P1401 ensures that payments received from abroad as salaries, bonuses etc by employees are reported correctly under RBI guidelines. Proper classification helps avoid delays in the remittance process and ensures compliance with FEMA regulations. Note that this purpose code applies to employees of an organisation and not independent service providers. For example, if you are a freelance graphic designer providing services to a client in the US and receive payment for the same, it will not be categorised under purpose code P1401.&nbsp;

Using an incorrect purpose code can lead to delay or cancellation of the transaction altogether and it can also lead to serious legal trouble if it's found that the incorrect code was deliberately used to bypass compliance.&nbsp;

Instances Where Purpose Code P1401 Will be Required

Let's understand the applicability of Purpose Code P1401 with a couple if instances.&nbsp; Example 1: Imagine you’re a full-time employee working remotely for a company based in Sweden while living in India. The company pays your salary directly to your Indian bank account without involving any third party. This inward remittance, being your compensation as an employee, is categorized under Purpose Code P1401.

Example 2: Let’s say you’re an employee working in the Gulf region, but your salary is deposited directly into your bank account in India. In this case, the payment is categorized under Purpose Code P1401, as it represents compensation received from abroad by an employee.

How to Select the Right Purpose Code for Your Transaction?

Choosing the correct purpose code is crucial to ensure your inward remittance complies with RBI and FEMA guidelines. If you’re receiving payments from abroad as salary, wages, bonuses, or other forms of employee compensation, Purpose Code P1401 should be used.

Before finalizing your transaction, verify the nature of the payment to confirm it matches this purpose code. For example, if the payment is not for compensation but for services rendered or goods sold, a different purpose code may apply. Ensure all relevant documentation, such as employment contracts or proof of payment, is in place to avoid discrepancies or delays.

If you’re uncertain about the appropriate purpose code for your transaction, consult your bank or a financial expert. Using the wrong code could lead to processing delays or attract regulatory scrutiny.

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International wire transfers are the backbone of global payments, powering everything from exports and remote freelancing to SaaS subscriptions. As India’s exports hit record highs and more businesses work with international clients, knowing how to send and receive money across borders is now a must.

But how exactly do international wire transfers work? How long do they take, what fees should you expect, and are there safer or cheaper alternatives? In this guide, we’ll break down everything Indian exporters, freelancers, and SaaS businesses need to know, covering step-by-step processes, timelines, costs, and compliance tips so you can move your money with confidence.

An international wire transfer is an electronic transfer of money from one bank account to another across countries. No physical cash changes hands; everything happens digitally, with your bank and the sender’s bank communicating securely.

Most international wire transfers use the<a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide"> SWIFT network </a>(Society for Worldwide Interbank Financial Telecommunications). SWIFT acts as the world’s messaging system for banks, allowing them to send payment instructions using unique SWIFT/BIC codes. That’s why international wire transfers are also known as SWIFT transfers or simply bank transfers.

Example:
If a client in the US wants to pay you in India, they’ll instruct their bank to send money to your Indian bank account via SWIFT. The payment travels securely between banks, no physical money ever moves, just electronic records and confirmations.

To receive an international wire transfer in India, you’ll typically need to provide your bank account number and the correct SWIFT code for your branch.

How do International Wire Transfers Work?

Wire transfers operate by sending a secure message from the sender’s bank to the recipient’s bank, instructing them to deposit the specified funds into the recipient’s account. The sender pays for the transaction upfront, and the funds are transferred electronically. 

Upon receiving the message, the recipient’s bank deposits the funds into the recipient’s account. The two banks then settle the payment on the back end, ensuring a secure and efficient transfer process. This method ensures that the funds are transferred quickly and safely, making wire transfers a reliable option for sending money.

What Documents and Information Do You Need for&nbsp; International Wire Transfer?

If you’re receiving an International Wire Transfer, share these details with the sender to ensure your payment reaches you smoothly:

If you’re sending an International Wire Transfer, be ready to provide these details to your bank:

Note:
Banks may ask for additional documentation, like a government ID, PAN card, or paperwork supporting the purpose of transfer (university admission letter, medical bills, etc.), especially for high-value or special-purpose transfers.

How to Make an International Wire Transfer (Step by Step)

You have a few options to send an international wire transfer. Choose what’s easiest based on your bank and needs:

Method 1: Online Banking (Most Convenient)

Method 2: Banking App or Phone Banking

Method 3: In-Person at a Bank Branch

Note: If you’re receiving money, you typically don’t need to do these steps, just provide your bank and account details (see previous section). But knowing the process helps guide your overseas clients.

Yes, international wire transfers are generally considered safe.
They rely on highly regulated networks like SWIFT, which use secure, authenticated messaging and strong encryption to protect every transaction. Banks also carry out strict identity checks (KYC) and monitor for suspicious activity to guard against fraud. Every transfer comes with a unique reference number for traceability and dispute resolution.

What Are the Compliance Regulations Around International Wire Transfers?

International wire transfers in India are <a href="https://skydo.com/blog/compliance-guideline-for-inward-remittance">governed by the Reserve Bank of India</a> (RBI) unde<a href="https://enforcementdirectorate.gov.in/fema">r FEMA (Foreign Exchange Management Act)</a>.
Only Authorised Dealer Category-I (AD Cat-I) banks can process these transfers.

International Wire Transfer Fees (Costs Involved)

International wire transfers come with a mix of visible and hidden costs. Here’s what you need to look out for:

1. Outgoing Wire Fee (Sender’s Bank):
The sender’s bank usually charges a flat fee or percentage (often $30–$50 per transfer for foreign banks; for Indian banks, up to ₹1,500 for outward transfers plus GST). For&nbsp;international payments, clients often pass on the SWIFT fees to the receiver, further reducing the amount you receive.

2. Incoming Fee (Recipient’s Bank):
Indian banks often advertise “free inward remittance,” but what they really do is make their money on the currency conversion (forex markup), not on a direct fee.

3. Intermediary Bank Fees:
If the money passes through intermediary banks (which is common in SWIFT transfers), each can deduct its own fee in transit, meaning you might get less than the amount sent, and this deduction is unpredictable.

4. Forex Conversion Markup:
The <a href="https://www.skydo.com/blog/forex-markup-fee-explained">biggest hidden cost</a>. Banks rarely offer you the real mid-market rate (the one you see on Google or XE.com). Instead, they add a margin (typically 1–3%) to the rate, which can cost you thousands on a large transfer.
Example: If $1 = ₹84 in the market but your bank gives you ₹82, you lose ₹2 per dollar. On $5,000, that’s a ₹10,000 loss, much more than any flat fee.

5. FIRC/FIRA Fees:
For compliance, you’ll need a Foreign Inward Remittance Certificate (FIRC or FIRA). Some banks (e.g., Axis) charge ₹250 per certificate.

6. GST/Tax:
All bank service fees (not the transfer itself) attract 18% GST in India.

7. Cancellation/Amendment Charges:
If a transfer needs to be cancelled or amended, some banks charge an additional fee (e.g., HSBC charges ₹100 + tax for cancellations).

What Are the Fees Charged by Indian Bank to Send a Wire Transfer

<a href="https://www.icicibank.com/personal-banking/online-services/funds-transfer/outward-remittance/branch-transfer/wire-transfer">ICICI</a>

Tip: Traditional banks add a<a href="https://www.skydo.com/blog/forex-markup-fee-explained"> forex spread, </a>but modern platforms like Skydo let you receive at mid-market rates, so you keep more of your money. If you're curious about how much you must pay while receiving a wire transfer, check our<a href="https://fx-calculator.skydo.com/comparison?utm_source=Social%20Media&amp;utm_medium=Skydo&amp;utm_campaign=FX%20Calculator"> FX calculator</a> to easily get accurate information.

How Long Does It Take to Receive an International Wire Transfer?

Most international wire transfers to India take 1 to 5 business days to show up in your account.

Tip:
If you haven’t received your payment after five business days, check first with the sender to confirm everything was sent correctly. Then, reach out to your bank for a status update or tracking help.

How to track an incoming international wire transfer?

Unlike tracking a courier, you can’t watch your wire transfer move in real time, but you do have options if you’re waiting for funds. Every international wire comes with a unique SWIFT reference number (sometimes called a UTR or transaction reference). Ask your sender for this number. You can also request an <a href="https://www.skydo.com/blog/mt103-what-is-it-why-it-matters-and-how-to-get-one">MT103 document</a> from the sender’s bank, it’s a detailed payment confirmation that acts like a “receipt,” showing where your money is in the SWIFT network.

If your payment is delayed, follow these steps:

Your bank can then use this information to investigate, often pinpointing whether the payment is still in transit, held by an intermediary bank, or if there’s a problem. Some banks even offer online tracking portals for SWIFT payments, or you can call customer support and provide the reference for a status update.

Tip: Waiting a few days is normal, but if your transfer is overdue, don’t hesitate to ask both the sender and your bank for help.

If your international payment is taking longer than expected, it’s likely stuck somewhere in the complex banking chain. Here are the most common reasons:

💡 Pro tip: With Skydo, you receive payments in local USD, EUR, or GBP accounts, bypassing intermediary banks, delays, and markup-loaded conversions. That means faster settlements and more money in your account.

How to Reverse or Cancel an International Wire Transfer

If you’re the sender and realize you’ve made a mistake, maybe you entered the wrong amount or sent money to the wrong person, the first step is to contact your bank immediately and request to cancel or recall the transfer. If the payment hasn’t yet left your bank or is still making its way through the SWIFT network, there’s a good chance it can be stopped (although banks may charge a recall fee).

However, once the funds have reached the recipient’s account, your bank usually cannot reverse the transaction on its own. In that case, you’ll need to contact the recipient and ask them to return the money. That’s why acting quickly is crucial; the sooner you notify your bank, the better your chances of a successful reversal.

Tip: Double-check all details before sending an international wire to avoid these headaches.

If you’re the receiver in India and notice an unexpected or incorrect incoming amount, notify your bank right away, and they can coordinate with the sender’s bank if needed to help resolve the issue.

How do I know if my foreign payment is stuck?

It can take upto 7 business days for your foreign payment to hit your bank account via SWIFT. However, if it is taking longer than that, your payment might be stuck. Don't hesitate to reach out to your payer to know more about where the payment is and urge them to check with their banks. You can also reach out to your bank to know your payment status.&nbsp; Alternatively, modern fintech platforms like Skydo let you track your payments, so that you know where your payments are, at every point in time.&nbsp;

Alternatives to International Wire Transfer

Skydo’s Virtual Accounts:&nbsp;Skydo is rapidly becoming the go-to choice for Indian exporters and freelancers looking for a smarter, faster way to receive international payments.

With Skydo, you get international <a href="https://www.skydo.com/blog/virtual-account-numbers">virtual accounts</a> in key markets (US, UK, Europe, Australia, and more), allowing your clients to pay locally and skip the usual SWIFT fees and delays. Funds are transferred to your Indian bank account at the live forex rate with a transparent, flat fee, no hidden markups or intermediary bank charges.

You also get instant FIRC for compliance, and everything is handled digitally for convenience and security. For many, Skydo combines the best of global fintech, speed, savings, and simplicity.

Wise (formerly TransferWise) :&nbsp;<a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">Wise</a> is known for its transparent fees and mid-market exchange rates. Senders in over 80 countries can transfer money using local payment methods, which often means faster and cheaper transfers than banks. To maximise savings, both sender and receiver may need Wise accounts, and fees, though generally lower, do scale with larger payments.

Payoneer: Payoneer offers Indian businesses and freelancers virtual US/EU accounts, making it easy to receive payments from marketplaces like Amazon or clients abroad. The platform is popular for its ease of use, but <a href="https://www.skydo.com/blog/payoneer-fees-india-guide">be aware of withdrawal and currency conversion fees</a>, as well as possible monthly inactivity charges.

PayPal:&nbsp;A longstanding favourite for freelancers, <a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal </a>enables easy invoicing and payment collection worldwide. However, the convenience comes with currency conversion markups (around 4%) and 4.4% transaction fees.&nbsp;

&nbsp;Other services like Western Union or MoneyGram exist, but are typically used for personal remittances due to higher costs and limited suitability for business transactions. Some companies also use<a href="https://www.selectsoftwarereviews.com/buyer-guide/global-payroll-software"> global payroll providers </a>to streamline their international payments.

Choosing What’s Best for You&nbsp;: Ultimately, the right alternative to international wire transfers depends on your business needs—cost, speed, convenience, and what your clients are comfortable with. Increasingly, Indian exporters and freelancers are choosing fintech solutions like Skydo and Wise, which offer transparency, lower fees, and a more seamless experience compared to traditional bank wires.

Skydo vs Bank Wire Transfer for Exporters

If you're an Indian exporter receiving payments from international clients, your choice between traditional bank wire transfers and a platform like Skydo can directly impact your earnings, speed, and compliance clarity.

💡 Exporters switching from bank wires to Skydo often save ₹2–5 lakhs annually, with fewer delays and more visibility.

Receive Fast and Secure International Payments with Skydo

Traditional international wire transfers can be slow, unpredictable, and expensive, with days of waiting, surprise SWIFT fees, and hidden losses on currency conversion. Skydo solves these pain points for Indian exporters and freelancers by reimagining how you get paid from overseas clients.

Virtual Global Accounts:
With Skydo, you get free virtual accounts in key markets like the US, UK, and Europe, so your clients can pay you as if they’re making a local transfer—bypassing SWIFT fees, intermediary deductions, and settlement delays.

Live Forex, No Markup:
Funds are credited to your Indian bank account at real-time exchange rates with zero markup. That means no more losing money to hidden currency fees—what you see is what you get.

Flat Fee &amp; Quick Settlement:
Every payment comes with a transparent flat fee, and you typically receive your funds in 24–48 hours, much faster than the usual 3–5 day bank wait.

Compliance, Simplified:
Skydo handles all RBI compliance for you. Every transaction comes with a free FIRC, and you can access everything digitally, no paperwork, no follow-ups.

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International Wire Transfer

Inward remittance means receiving money from abroad in your bank account in India. However, inward remittance, especially foreign payments aren't as straightforward as a domestic transfer due forex rate, RBI guidelines and international systems.&nbsp; In this blog, we’ll break understand what inward remittance is, what are the rules, charges, and timelines around it. So let us begin!&nbsp;&nbsp;

Inward remittance is simply money sent to your bank account in India from someone living abroad. It could be funds from an NRI family member helping with education or medical bills, or even a foreign employer or client paying your salary or invoices.

The money arrives in foreign currency and gets converted into Indian Rupees at the current exchange rate. Whether it’s personal support or business payments, understanding how inward remittance works makes it easier to manage and maximize what you receive.

What are the Rules and Guidelines for Receiving&nbsp; Inward Remittance in India?

Since inward remittance involves movement of money across national borders, it comes with its own set of rules and guidelines.&nbsp;In India, the RBI and <a href="https://enforcementdirectorate.gov.in/fema">FEMA</a> (Foreign Exchange Management Act) have set out <a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance">specific guidelines</a> for receiving inward remittances in India:&nbsp;

<a href="https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/1061.PDF">&nbsp;Only Authorised Dealer Category I&nbsp;</a>(AD Cat I) banks are allowed to receive foreign inward remittances in India.&nbsp; The AD Cat I banks are financial institutions that hold a license issued by the Reserve Bank of India (RBI) to buy and sell foreign currency for capital and current account transactions.

Each foreign inward remittance must contain a<a href="https://www.skydo.com/blog/rbi_purpose_code_for_inward_remittance"> purpose code.</a>&nbsp;The code defines the purpose of inward remittances like education, investments, remuneration, travel, insurance and more.&nbsp;For example:

If your inward remittance is payment for selling goods/services abroad then it must be accompanied by an FIRA. <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRA&nbsp;</a>is proof that you have received a <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">foreign payment </a>in India and is issued by the AD Category I banks.

Transfers related to lottery winnings, gambling, and other illegal activities are prohibited under FEMA guidelines.

For most foreign inward remittances, there’s no<a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance#do-you-have-to-pay-tax-on-remittance"> tax liability</a> in India. However, if the remittance is income from sources like investments, salary, or business, it will be taxed according to your applicable income tax slab rate.

We've briefly touched on the compliance requirements associated with inward remittance. You can find the <a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance">detailed explanation of the compliance requirements here</a>

What Documents Are Required for Receiving Inward Remittance in India?&nbsp;

While receiving your inward remittance, you may need to furnish the followig documents

You fall into this category if you’re an exporter, freelancer or someone who provides services to international clients. Here’s the document list:

You can find a detailed explanation of the<a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance#what-are-the-documents-required-for-inward-remittance-in-india"> documents required for inward remittance in India right here</a>

How Do You Receive Inward Remittance in India?

There are three primary means to receive foreign inward remittances in India:

Let’s explore each medium and the steps in collecting inward remittances in India.&nbsp;

Banks are one of the most popular ways of transferring money from overseas to India. To receive inward remittance you must share your Indian bank account details like account number, bank and branch name, and <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT code</a> with the sender. You can find the<a href="https://www.skydo.com/swift-code-finder"> SWIFT code of your bank right here.&nbsp;</a>

<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal supports</a> over 100 currencies and has gained popularity in India as a medium to receive inward remittances. You can use the PayPal website or download their app to receive foreign remittances. Link your bank account to PayPal, so that you can withdraw money when you like.

I<a href="https://www.skydo.com/blog/virtual-account-numbers">nternational virtual accounts</a> are like digital gateways linked to your real bank account. They don’t store money themselves—when funds are credited, they’re transferred to your bank account. With platforms like Skydo, you can use virtual accounts to receive payments in different foreign currencies, making cross-border transactions simple and hassle-free.

The cost of processing inward remittances varies across banks and can include charges like SWIFT fees, forex markups, and additional service fees. For business payments, it’s crucial to understand these charges, as they are often borne by the recipient.

Here’s a breakdown of inward remittance charges at popular Indian banks:

Understanding these fees can help you plan your payments better and avoid unexpected deductions.

PayPal Charges for Receiving Inward Remittance

PayPal also comes with a hefty price tag for receiving foreign remittances in India especially when it comes to business payments. It charges a flat 4.4% transaction fee on every transaction. Additionally, you have to bear a fixed fee, which depends on the currency and a currency conversion fee of 4% on the current exchange rate. To get an in-depth explanation of each charge, check out our blog on<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives"> PayPal India Charges</a>.

International virtual accounts Charges for Receiving Inward Remittance

Virtual accounts do not charge SWIFT fees because it’s treated as a local transfer making it a more affordable option. Here’s a quick breakdown of how much Skydo charges for receiving international payments via virtual accounts:&nbsp;

With Skydo, for payments up to USD 2,000, you pay $19. For payments between 2,000 to 10,000, you pay $29 and for payments above USD 10,000 only 0.3% fee is levied. So for a USD 5000 inward remittance, you can expect to receive INR 5,424 more compared to banks and INR 32, 862 more compared to PayPal.

Is There Tax on Inward Remittance in India?

Are you supposed to<a href="https://www.skydo.com/blog/decoding-gst-on-foreign-exchange"> pay taxes on inward remittances</a>? According to the income tax rules for international remittances, it depends on the purpose of the remittance. We have covered three different scenarios to give you a snappy overview:

Find out <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">how to receive foreign payments in India.</a>&nbsp;

How Much Inward Remittance is allowed in India?

According to the framework set by RBI for<a href="https://www.skydo.com/blog/online-payment-gateway-service-provider-opgsp?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link"> Online Payment Gateway Service Providers</a> (OPGSP), there are no limitations on personal transfers.&nbsp; However, <a href="https://www.rbi.org.in/commonman/English/scripts/FAQs.aspx?Id=1692#:~:text=There%20is%20no%20limit%20on,lakh%20for%20trade%20related%20transactions.">as per RBI</a>, there is a cap of INR 15.00 lakh for trade-related transactions.

Receive Business Inward Remittance Seamlessly with Skydo

For an exporter or a freelancer, paying hefty charges for inward remittances is a huge loss to their earnings. They deserve a platform that offers transparent pricing and advanced features for invoicing.<a href="https://www.skydo.com/"> Skydo</a> fits the requirements perfectly and is a trusted partner for business owners looking to scale their revenue from international clients.