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.

What is FIRC? FIRC Full Form, Meaning and More

As we've covered, the full form of FIRC is a Foreign Inward Remittance Certificate and it serves as a proof of foreign transfers. Until 2016, <a href="https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/1061.PDF?no_follow=true/">AD Category I Banks</a> were authorised to issue FIRCs to exporters for receiving international payments. 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.

Changing RBI Guidelines: From FIRC to FIRA

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 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>

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.

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

A well-developed inward remittance infrastructure is essential for India’s economic growth. It makes it easy for exporters to earn foreign exchange and individuals to receive money from their family members abroad.&nbsp;

But the infrastructure must be secure and prevent attacks from harmful money laundering and illegal activities like terrorism financing. The Reserve Bank of India (RBI) takes up that responsibility. It actively monitors foreign exchange transactions in India and establishes guidelines to safeguard the economy from such threats.&nbsp;

This blog post dives deep into the RBI guidelines and uncovers its effect on personal and business international remittances.

What are the RBI and FEMA guidelines for inward remittance in India?

Before we head to the FEMA guidelines here is a primer on FEMA. FEMA is an abbreviation for the Foreign Exchange Management Act passed in the parliament in 1999.

The FEMA oversees cross-border payments in India and sets up guidelines for foreign trade. The RBI implements these guidelines and establishes the legal framework for all businesses and individuals engaged in foreign trade and services.&nbsp;

Here is the list of FEMA guidelines that cover the most important aspects of compliance in inward remittance in India:

Only specific financial institutions are authorised by <a href="https://enforcementdirectorate.gov.in/fema">RBI u/s 10 (1) of FEMA</a>., 1999 to deal in foreign inward remittances and are referred to as Authorized Dealer Category I (AD Cat I) banks.&nbsp;

These banks buy and sell foreign currency to facilitate international transactions. They also oversee and report all inward remittances to RBI through the <a href="https://www.skydo.com/blog/understanding-edpms-full-form-and-its-essential-role-in-export-management">Export Data Processing and Monitoring System (EDPMS)</a>.&nbsp;

Foreign Inward Remittance Certificate (FIRC)

<a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRC</a> is the proof of inward remittance. It’s a necessary document for exporters, Indian companies offering services outside India, and freelancers to prove that they have received money from an international client. The FIRC contains details about the remitter, amount, and purpose of remittance among other crucial information. FIRC is more important for exporters because it’s useful for claiming export-related incentives and GST refunds.

<a href="https://www.skydo.com/blog/rbi_purpose_code_for_inward_remittance">Purpose codes</a> define the purpose of the remittance. You will find the<a href="https://www.rbi.org.in/upload/notification/pdfs/52220.pdf"> purpose code list</a> on the RBI website to identify the purpose of your transaction. After you have identified that, mention the purpose code to your bank.&nbsp;

You must be careful when you mention the purpose code to your bank. Incorrect information could result in compliance issues resulting in the cancellation of the transaction or legal actions in the worst case scenario. For example, if you’re an exporter of goods and entered into an agreement with the buyer to receive the full invoice value after they receive the shipment, then the purpose code for you is P0102. If you use P0103 which is applicable for exporters receiving advance payments, your payment could be denied.&nbsp;

What are the Documents Required for Inward Remittance in India?

The list of documents depends on the nature of the transaction. For example, the document list for an individual receiving money from a family member in a foreign country will be different from an exporter. We have listed all the documents for each category:

Identification proof: Any government-issued document that proves you’re a citizen of the country falls in this category. So your Passport, Aadhar Card and Voter ID will qualify.&nbsp;

Bank account details: Your bank name, account number, branch location, and IFSC code are the three most important information you must share with the remitter to receive foreign inward remittance

Purpose code: Check on the RBI purpose code list to find the most appropriate purpose code. There are different codes based on the purpose behind the personal transfer. For example, if you’re receiving the money for family maintenance and savings, then P1301 is the right code. You can find the right purpose code for your business <a href="https://www.skydo.com/blog/rbi_purpose_code_for_inward_remittance">right here</a>.&nbsp;

Receiving payment for business transactions

This not only applies to exporters but also freelancers and consultants who receive cross-border payments

Foreign Inward Remittance Certificate (FIRC): Once the payment reaches your bank account, you’ll need to request an FIRC from your bank to confirm receipt of funds. This usually involves a fee of around INR 400, and you can expect to wait at least a week before the FIRC is issued. However, platforms like Skydo provide free <a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online">online FIRC</a> for every transaction instantly.&nbsp;

Invoice: The invoice should clearly mention the nature of the transaction like the item details in case you export goods.

Contract: Your bank might ask you to produce a copy of the agreement to understand your business relations with the international client.

Purpose code: The purpose code is essential because it defines the reason for payment. Double-check the purpose code before you share it with your bank to avoid hassles like cancellations or reversals.

KYC: If you’re an export organization, the Certificate of Incorporation, Memorandum, and Articles of Association are the most important KYC documents.

Bank account details: &nbsp;Your bank name, account number, branch details, and IFSC code will come under this category

Declaration form: Banks demand a declaration form during large transactions. You must submit an undertaking to the bank that the money is from a legitimate source and that you’re not involved in any illegal activities. This is done to increase transparency in transactions and track foreign funds.

Generally, there is no tax liability on foreign inward remittances in India. However, there are exceptions you should be mindful of to adhere to tax compliance laws:

Gifts: If the value of personal gifts from non-relatives exceeds INR 50,000 in a financial year, then you will be taxed as per the provisions mentioned <a href="https://ctconline.org/wp-content/uploads/pdf/2019/seminar-presentation/income/Study-Circle-Meeting-18-4-2019-Devendra-Jain.pdf">u/s 56 (2) (x) of the Income Tax Act</a>.&nbsp;

Foreign income: Foreign income in the form of salary or business proceeds will be taxed according to your income tax slab rate.&nbsp;

Income from investments: Any form of income you generate from foreign investments will also be taxed according to your income tax slab rate

GST: There is no<a href="https://www.skydo.com/blog/decoding-gst-on-foreign-exchange"> GST on foreign exchange</a>. However, payment platforms may charge 18% as a transaction fee for receiving inward remittances.&nbsp;

What income sources are Prohibited in the Inward remittance RBI guidelines?

Inward remittance from the following sources is strictly prohibited under the <a href="https://www.bcasonline.org/Referencer2015-16/Other%20Laws/fema.htm">FEMA guidelines</a>:

Online gaming: Any income generated from online gaming websites, betting or gambling platforms cannot be remitted to India.&nbsp;

Other speculative or illegal activities: This broad category covers all forms of income generated through illegal activities like drug trafficking.&nbsp;

Lottery winnings: If a lottery is a source of income, you cannot remit the funds to India. This is so because it’s difficult to track the source of the lottery and could be associated with money laundering.

Winning from races or riding: Income generated from betting on races is treated as income from gambling activities. Therefore it is banned from inward remittance transactions.

Earnings from banned magazines: Banned magazines promote violence and hatred towards communities or some other form of illegal content. Allowing income from such sources to enter the country could be a threat to cultural stability.

Sweepstakes: Sweepstakes are like lotteries and could be traced back to illegal marketing schemes. Preventing them means preventing unlawful income through inward remittance.&nbsp;

There are two methods to receive foreign inward remittances in India – Rupee Drawing Arrangement (RDA) and Money Transfer Service Scheme (MTSS)

However, to use these methods they have to go through the AD-Cat I banks and cannot do it on their own.

Where to Show Receipt of Foreign Remittance While Filing ITR?

If you’re earning foreign income as a salary from working remotely with an international company, you can report it as 'income from salary' in your ITR. For freelance income, you may choose the presumptive taxation scheme and file ITR 4, or classify it as 'income from business or profession.' However, if you hold foreign assets or receive capital income from abroad—such as dividends, interest, or capital gains—you’ll need to declare these under Schedule FA in ITR 2 or 3.&nbsp;

&nbsp;Receive 100 % safe and compliant International Payments with Skydo

Banks may be the most common way to receive inward remittances, but they’re far from the best. Slow processes, hidden fees, and unclear final amounts mean you’re often left waiting—and wondering—about how much will actually arrive in your account.

Exploring alternative options, like international virtual accounts, can make a big difference. Virtual accounts offer three major benefits: they keep your bank details private, speed up the transfer process, and eliminate hefty SWIFT fees. Platforms like Skydo provide a streamlined experience with flat fees and immediate FIRC issuance as soon as funds arrive. By choosing a smarter remittance solution, you can save time, cut costs, and stay in control of your money.

Compliance guidelines for inward remittance

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Thinking about launching an import-export business or taking your current business international?

An IEC Code (Import Export Code) is your key to making it happen. This 10-digit code, issued by the DGFT, is essential for any business dealing with cross-border trade. Benefits of IEC Code include smoother customs clearance, seamless international payments, and exclusive export benefits.

In this guide, we’ll cover everything you need to know about getting an IEC Code—from how to apply for one to benefits—so you’re ready to start trading globally with ease.&nbsp;

IEC code stands for Importer Exporter Code. It is a vital 10-digit identification number required for anyone willing to engage in import or export activities in India. 

The IEC code is issued by the Directorate General of Foreign Trade (DGFT) and is essential for clearing customs and facilitating international trade transactions.

Any business entity looking to start an international business involving import/export operations can apply for an IEC code. This includes:

Yes, if you are exporting goods from India, you do need an IEC code. IEC code is essential for any business engaged in international trade activities in India. Here are the key situations when you need an IEC code:

The IEC code is mandatory for customs clearance of goods at ports and airports during import and export operations. Customs authorities require this code to ensure that shipments comply with legal regulations.

Banks require IEC code when processing international payments. This ensures that transactions are legitimate and comply with trade laws, facilitating smooth financial operations for importers and exporters.

Having an IEC code is necessary to benefit from various government schemes, such as the Merchandise Exports from India Scheme (MEIS) or <a href="https://www.skydo.com/blog/seis-guide">Service Exports from India Scheme (SEIS)</a>. These incentives can significantly enhance a business's profitability.

How can I apply for an IEC Code in India?

The <a href="https://www.skydo.com/blog/iec-code-apply-online">IEC code registration/application process</a> is as follows:&nbsp;

Here’s how you can view and print your IEC code:&nbsp;

It is important to verify IEC code as it confirms the authenticity and validity of this code, which is mandatory for businesses involved in international trade.

To verify your Importer Exporter Code IEC code (Import Export Code), you can use the ICEGATE and DGFT portals. Here’s how:

Alternatively, you can also verify your IEC code via <a href="https://www.icegate.gov.in/">ICEGATE</a> website. To check your IEC status, access the Services tab, select Check IE Code/BIN Status, enter your IEC code, and click IE Code@ICEGATE to view detailed status information.

What Documents Are Required for IEC Code Registration?&nbsp;

Here are the required documents for the IEC application:

What is IEC Code Registration Fees?&nbsp;

The IEC code registration fee structure is as follows:&nbsp;

Here are the key benefits of having an IEC code:

IEC enables legal cross-border trade, letting businesses enter international markets and conduct import-export operations smoothly.

Leverage the benefits of government schemes

Access to export promotion schemes like MEIS (Merchandise Exports from India Scheme), which helps offset infrastructure inefficiencies, and SEIS (Service Exports from India Scheme), which offers duty credits based on foreign exchange earnings.

GST exemptions are available for exporters when filing a Letter of Undertaking (LUT), allowing goods to be exported without upfront tax payment.&nbsp;

Linking IEC with GST unifies business identification, streamlines compliance through automatic updates, facilitates financial tracking, and enables access to export incentives while enhancing operational efficiency. The linkage should be established during initial GST registration and verified annually during the DGFT compliance review period.

Below are the steps to link your IEC code with GST (Goods and Services Tax):&nbsp;

Take Your International Business Further with Skydo

Getting your IEC code is the first step toward establishing your presence in international markets. While the process might seem complex, following the proper steps and maintaining annual compliance ensures smooth international trade operations.

For businesses ready to leverage their IEC code, platforms like Skydo offer secure and efficient international payment solutions. With features like real-time payment tracking, multi-currency support, and automated compliance checks, Skydo complements your IEC by streamlining cross-border transactions at lower fees than traditional banks.&nbsp;

By combining your IEC compliance with Skydo's payment infrastructure, you can focus on growing your international business while ensuring regulatory compliance.

<a href="https://www.skydo.com/">Explore Skydo</a>&nbsp;

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How to receive international payments in India smoothly is a challenge that many global businesses, exporters, and freelancers face. From finding clients to managing inventory and setting competitive prices, there’s already a lot to juggle. Yet even experienced exporters often overlook the importance of choosing the right payment method.

Getting this part right can save you thousands, prevent compliance issues, avoid payment delays, and spare you unnecessary stress.

In this blog, we’ll explore the best ways to receive international payments in India, helping you find the ideal solution for hassle-free transactions.

What are the best ways to receive international payments in India?

Here are the main ways to receive cross-border payments :

1. <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">Banks</a> 2. <a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal</a> 3. International virtual bank accounts via platforms like Wise, Payoneer, Skydo etc.&nbsp;

Before deciding on how to receive international payments in India, it’s essential to consider a few key factors. Evaluating these parameters will help you choose the most suitable method to maximise your earnings seamlessly. So let’s take a look at what these parameters are.

Things to Note Before Receiving International Payments in India

Unfortunately, international money transfers, especially payments aren’t as straightforward as domestic ones. Different countries have different regulations and multiple financial institutions are involved in the process as well. 

So here are a few things to watch out for before receiving payments from abroad:

In India, we’ve become accustomed to instant payments thanks to UPI—just a quick scan, and it's done. Even bank transfers settle within a few hours. However, international payments are a different story, often taking longer due to the lack of a unified global payment system. Depending on the international payment method, cross-border transfers can take 1 to 7 business days to settle.

One of the key things you need to consider while asking how to receive international payments in India is compliance. Due to concerns around money laundering and terror financing, international transactions must meet strict compliance standards. Here’s what you need to know:

A <a href="https://www.skydo.com/blog/what-is-purpose-code-and-why-is-it-required" target="_blank">purpose code </a>is an alphanumeric code that identifies the reason for each international transaction. If you’re receiving cross-border payments, quoting the <a href="https://www.skydo.com/blog/rbi_purpose_code_for_inward_remittance" target="_blank">correct purpose code</a> on your invoice is mandatory to avoid delays or rejections.

<a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide" target="_blank">FIRA </a>is a document issued by banks as proof that you’ve received cross-border payments. It is essential for exporters and freelancers to keep this document for tax and regulatory purposes.

<a href="https://www.skydo.com/blog/bank-realisation-certificate-all-you-need-to-know" target="_blank">BRC </a>confirms that the funds received align with the goods or services exported. It’s mostly required for goods exporters and software exporters under SOFTEX regulations. Freelancers or service exporters outside this category usually don’t need to worry about obtaining a BRC.

Before we start receiving international payments, it is important to be aware of <a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance">taxes on foreign remittances in&nbsp; India.</a>&nbsp;Here's a quick explainer:

Exports under the GST regime are treated as <a href="https://www.skydo.com/blog/decoding-gst-on-foreign-exchange#1-inward-remittances" target="_blank">zero-rated,</a> meaning no GST applies since the goods or services are consumed outside India.

Charges are one of the key factors when deciding on how to receive international payments in India.&nbsp; You need to be aware of bank fees for receiving foreign money as well as the fee that is charged by payment gateways for international payments. Knowing these charges helps you maximise your payments effectively.

Banks, for instance, apply markups on exchange rates—if the actual rate is 1 USD = ₹84, they might offer ₹82, with the small difference adding up over multiple transactions. Similarly, platforms like <a href="https://www.skydo.com/blog/top-paypal-india-alternatives-for-international-payment">PayPal </a>charge a steep 4% currency conversion fee, along with an additional 4.4% transaction fee and a fixed fee, further eating into your payout. While some costs are unavoidable, being aware of these charges allows you to make smarter choices and maximize your earnings by opting for more cost-effective payment methods.

What’s the Best Way to Get Paid in India?

There’s no one-size-fits-all answer to the question of how to receive international payments in India—it all depends on what matters most to you. Whether it’s faster settlement, favourable exchange rates, easy compliance, or other factors, the right option will vary.&nbsp;

 In this section, we’ll break down the different payment methods based on these key parameters to help you decide which one fits your needs best.

Banks are often the traditional answer to the question of how to receive international payments in India, and online banking has made money transfer services more convenient as well. However, to know if banks are the best bet for you to get your global payments let’s take a look at how they fare on the parameters listed above:

<a href="https://www.skydo.com/blog/international-wire-transfer-all-you-need-to-know">International bank wire transfers</a> typically run through the SWIFT network and can take up to <a href="https://www.hdfcbank.com/personal/resources/learning-centre/pay/how-long-does-a-wire-transfer-take" target="_blank">5 business days—or longe</a>r—especially when intermediary banks are involved. These intermediaries step in when the sending and receiving banks don’t have a direct relationship. Delays can also happen due to bank holidays, incorrect details, or currency conversions, making the process slower than expected.

Banks are of course one of the safest ways to handle international transactions. They issue FIRA for every foreign payment but it is not a default or free service. You have to follow up with your bank to get your FIRA and banks often levy a fee for the same. <a href="https://www.axisbank.com/docs/default-source/default-document-library/small-business-banking/schedule-of-charges-for-trade-and-forex-transactions.pdf" target="_blank">Axis Bank for example charges INR 250 for every FIRA and an additional INR 100 for duplicate FIRA. </a>&nbsp;Once you receive the FIRA, you can submit it to the bank to get your BRC.&nbsp;

Although banks are the go-to option for receiving cross-border payments, bank fees for receiving foreign money can definitely raise eyebrows. Here's why:

Banks charge a SWIFT fee for every international transfer. While this fee is technically on the sender, it often gets passed on to the receiver—typically the exporter or freelancer. For instance, <a href="https://www.axisbank.com/docs/default-source/default-document-library/small-business-banking/schedule-of-charges-for-trade-and-forex-transactions.pdf" target="_blank">Axis Bank charges ₹500 to ₹1,000 per SWIFT transfer.</a>

This is where banks make the most profit. Let’s say you receive $5,000, and the real exchange rate is 1 USD = ₹84, so you expect ₹420,000. Instead, the bank offers a lower rate of ₹82 per USD, leaving you with ₹410,000—a loss of ₹10,000 on just one transaction.

Beyond SWIFT and forex fees, banks tend to charge extra fees for various services. For example, <a href="https://www.axisbank.com/docs/default-source/default-document-library/small-business-banking/schedule-of-charges-for-trade-and-forex-transactions.pdf" target="_blank">Axis Bank</a> charges ₹250 for issuing a FIRA and ₹500 to track SWIFT payments. These small fees can quickly add up, cutting deeper into your earnings. So if you're looking for the cheapest way to receive foreign payments, banks may not be your best bet.&nbsp;

Which banks allow international payments in India?

AD Category I banks are allowed to receive international payments in India. These are banks licensed by RBI to buy and sell foreign exchange for specific purposes. Some of the leading AD Category I Banks are ICICI, HDFC Bank, Axis Bank and many more. 

<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal's</a> credibility and global reach make it a popular choice for online money transfers as well as for receiving international payments in India. So is Paypal the answer to, "How to receive international payments in India?" Let's find out:&nbsp;

How quickly you get your international payments via PayPal depends on how it’s sent. For bank deposits, transfers up to ₹5 lakh usually arrive in minutes, while anything above ₹5 lakh takes around 2 hours. However, depending on multiple factors, this can take longer as well.&nbsp;

Broadly, PayPal India’s charges for receiving cross-border payments can be categorised under the following heads:

When you receive an international business payment via PayPal in India, the platform charges a <a href="https://www.paypal.com/in/webapps/mpp/merchant-fees" target="_blank">4.40% transaction fee</a>. For example, if you receive USD 1000 from a US client, PayPal will deduct USD 44 as a transfer fee.

Along with the transaction charges, PayPal also levies a <a href="https://www.paypal.com/in/webapps/mpp/merchant-fees" target="_blank">fixed fee</a> depending on the currency of the transaction.

PayPal India also adds a 4% currency conversion fee to the prevailing exchange rate when converting foreign currency to Indian rupees. This means you receive a lower exchange rate than the market rate.

For example, if the current market rate is INR 84 per USD, PayPal’s effective exchange rate would be 4% less, which is INR 80.64. You read in detail about Paypal’s pricing<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives" target="_blank"> right here</a>

PayPal provides a monthly digital FIRA to businesses and freelancers. This FIRA covers all international transactions from the previous month, and it is only available by the <a href="https://www.paypal.com/in/webapps/mpp/firc-certificate" target="_blank">15th of the subsequent month.</a>

Virtual International Bank Accounts&nbsp;

New-age fintech platforms like <a href="https://www.skydo.com/blog/top_5_wise_alternatives_for_international_payment">Wise,</a> Skydo, and <a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees">Payoneer </a>are making cross-border payments seamless with international virtual accounts. These platforms provide users with virtual bank accounts in countries like the US, UK, and Australia. Clients in these countries can send payments to these virtual accounts as local transfers, avoiding the hassle and cost of international transfers.

The platforms then consolidate these local payments and transfer them to the recipient’s personal bank account.&nbsp; Let's explore whether virtual accounts could be the answer to how to receive international payments in India.

Once the payment hits your virtual account, it’s quickly transferred to your personal bank account. For example, <a href="https://wise.com/help/articles/71lNXW0Ls3gEFhUH8PtodV/receiving-payments-for-indian-businesses#:~:text=Bank%20transfers%20from%20your%20clients,take%202%E2%80%935%20working%20days." target="_blank">Wise deposits funds within 0-2 business days</a>, while <a href="https://www.payoneer.com/en-in/payoneer-account/#:~:text=When%20you%20register%20with%20Payoneer,hours%20to%20your%20bank%20account." target="_blank">Payoneer </a>and Skydo mostly settle payments within 24 hours—all much faster than traditional bank transfers.

Since virtual bank accounts skip <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT transfers,</a> no SWIFT fees apply. However, each platform has its own charges:

For a detailed breakdown, check <a href="https://www.skydo.com/blog/payoneer-fees-india-guide" target="_blank">Payoneer’s fees here.</a>

<a href="https://www.skydo.com/blog/wise-transfer-charges-in-india" target="_blank">You can read more about Wise’s pricing right here.&nbsp;</a>

Most platforms offering international virtual accounts in India also provide FIRA to their users. While Wise charges a fee for issuing FIRA, both Payoneer and Skydo offer it free and instantly, making the process smoother and more convenient for users.

If you’re a large business handling high volumes of cross-border payments, banks might be the answer to how to receive international payments in India. They often offer competitive exchange rates and personalized services that smaller clients might not receive.

Many businesses and freelancers also prefer PayPal for its global credibility and acceptance, offering a payment option their international clients are familiar with.

For individual freelancers and small to medium businesses, international virtual accounts are often the most practical choice. These fintech platforms provide a seamless payment experience without the hassle of dealing with banks. By bypassing the SWIFT network, they eliminate SWIFT fees and typically offer faster settlements. Many platforms also include FIRA to simplify compliance. However, before deciding on how to receive international payments in India, carefully review their fees, foreign currency conversion rates, and customer support to ensure they meet your needs.

How to Get Paid by International Clients in India with Skydo?

While there are several ways to receive international payments in India, virtual bank accounts are quickly becoming the preferred option for businesses and freelancers due to their simplicity and affordability. With Skydo, setting up an international account takes just five minutes, helping you easily do business in markets like the US, Europe, Singapore, and Australia.

Skydo streamlines your payments by offering live Forex rates with no hidden fees or currency markups. To keep things hassle-free and compliant with RBI regulations, you’ll get instant FIRA downloads after every transaction. Plus, each user benefits from a dedicated representative who’s ready to provide guidance and support whenever you need it.

If you're looking to avoid high fees on international transfers and make your foreign payments seamless and compliant, Skydo is the perfect solution!

How to receive international payment in India

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Imagine landing your first international client for your handmade jewelry, only to have your shipment held up at customs because your IEC (Importer Exporter Code) status shows "pending verification." This scenario plays out frequently for Indian businesses and freelancers who overlook IEC verification (an initiative by the government of India), leading to costly delays, storage charges, and potentially lost clients. The good news? A simple online verification process can help you avoid these headaches and ensure smooth international shipping.&nbsp;

This guide will explain how to check your IEC status online, understand different verification statuses, and prepare your business for hassle-free international trade.

An IEC is your passport for international trade. The Directorate General of Foreign Trade (DGFT) gives this unique 10-digit number to businesses and freelancers who want to trade internationally.

You need to verify your IEC details because:

There are two simple ways to verify your IEC

Step 1: Open your web browser and go to the <a href="https://www.dgft.gov.in/CP/">DGFT</a> website

Step 2: Look for the Login button at the top of the page. Type in your username and password

Step 3: Find and click on Services in the menu. Now look for IEC Management and click on it

Step 4: Here, you need to put in your PAN details and click Submit to see your IEC status or download your IEC certificate

Step 1: Visit the <a href="https://www.icegate.gov.in/">ICEGATE website</a>

Step 2: Find and click User Login under Services.&nbsp;

Step 3: After logging in, look for Check IE Code/BIN Status. Type in your IEC number, complete the captcha, and click IE Code @ ICEGATE to see your status

What are the Different Statuses of IEC Code Verification?

When you check your IEC application status, you'll see one of these status messages:

It means your application is being processed. You need to wait for four days to get the next update. During this time, DGFT officers review your documents and verify your international business details. You can use this waiting period to set up other aspects of your export business, like preparing product catalogs or finalizing your pricing strategy.

It means something wasn't quite right about your application process, and it got rejected (for example, maybe your address proof wasn't clear enough in the application). The next step could be to fix the issues and apply again (no extra fees needed). The good news is that the system will highlight which documents or details need correction, making fixing it easier. Most rejections are resolved within one resubmission, so don't get discouraged if this happens to you.

It means the DGFT has approved your <a href="https://www.skydo.com/blog/iec-code-apply-online">IEC application</a> and sent it to customs. The next step is to wait three days for customs clearance. During this time, your information is being integrated into the customs database, allowing you to ship goods internationally. You can track this status daily on the ICEGATE portal to know exactly when your code becomes active.

Registered by DGFT and Accepted by ICEGATE

It means you're all set to start your import and export operations. This status confirms that DGFT and customs systems recognize your IEC as valid and active. You can now register with shipping companies, apply for export benefits, and start accepting international orders and gigs with confidence that your documentation is complete and valid.

What are the Benefits of IEC Code Verification?

Picture losing a ₹5 lakh international project because your IEC verification wasn't current—it happens more often than you'd think. Understanding the benefits of IEC verification isn't just about following rules; it's about protecting your business and unlocking opportunities that could take your export activities to the next level.

When your IEC is verified, you'll breeze through customs checks without delays. A verified status means your documentation moves much faster, saving you time and money.

A verified IEC builds confidence in your business relationships. International clients can easily confirm that you're a legitimate freelancer. For businesses, shipping companies are more likely to process your orders quickly (keep the shipping bills handy), and banks view you as a credible business partner for financial services.

Regular verification acts as a security measure for your business. You can quickly spot if someone tries to misuse your IEC number for unauthorized trades. This verification status also serves as solid proof of your legitimate trading activities if questions ever arise.

With a verified IEC, you can easily access government export schemes for businesses like yours. Banks are more willing to offer export financing options, and you can confidently register for international trade shows. Plus, claiming benefits like duty drawback becomes much smoother.&nbsp;

What are the Common IEC verification issues and their fixes?&nbsp;