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

small_63aec75c493ff751315d72ac_63948a436dc07c0bec0374ea_uA3i3IUVLPHk_-xjAlW9Z7bxKaOLRCylGX1byeHyzyE.png

thumbnail_63aec75c493ff751315d72ac_63948a436dc07c0bec0374ea_uA3i3IUVLPHk_-xjAlW9Z7bxKaOLRCylGX1byeHyzyE.png

Prashanth Kumar

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.

How to Select the Right Purpose Code for Your Transaction

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

The most experienced entrepreneurs in the export industry maintain airtight documentation to stay compliant with the regulatory requirements. One such critical document is the Bank Realisation Certificate (BRC). If you're new to the export business, understanding BRC could be tricky. This blog post will make things easier for you. We have dived deeper into the meaning of BRC, its applicability to your business when the bank issues it, how to download BRC and more.

What is a Bank Realisation Certificate (BRC)?

A Bank Realisation Certificate (BRC) proves you have received payment from an international buyer for exporting your goods or providing services. Your bank issues BRC, but there are a series of steps before that. It starts with reporting the value of goods you want to export to your bank. Your bank will record the transaction in the Export Data Processing and Monitoring System (EDPMS). After you receive the payment and submit all the shipping bills to the bank, they will close the transaction on EDPMS and issue BRC.&nbsp;

You must maintain a record of all the BRC to establish the credibility of your export earnings. In addition to acting as proof of payment, it’s also useful to an exporter to claim incentives and various export benefits.

Till 2012, the entire process of BRC was manual and time-consuming.<a href="https://www.skydo.com/blog/what-is-e-brc"> e-BRC</a> (Electronic Bank Realisation Certificate) is the digitised version of the process which is more efficient and convenient for both the banks and exporters. Before e-BRC, you had to visit the bank to collect the physical form of BRC and then hand it over to the Directorate General of Foreign Trade (DGFT) regional authority to claim export benefits. Instead of a physical BRC, banks issue an e-BRC and directly upload it to the DGFT server. Once all the details are verified by DGFT, you can download the e-BRC.

BRC is mandatory for sellers exporting goods and software products where shipping bills or SOFTEX forms are involved. Shipping bills are documents submitted to customs to get their clearance and load the goods for export. It includes information about the goods like quantity and cost. SOFTEX forms are mandatory for companies engaged in the export of software or services related to it.&nbsp; But if you’re a freelancer or export services that do not include shipping bills or SOFTEX forms, you don’t need to create a BRC.

BRC serves two main purposes: to comply with the DGFT regulations and to claim export benefits and incentives.

The DGFT regulations mandates exporters to create a BRC as evidence that they have received payment from an international client. This ensures that your foreign earnings are documented and reported to the government.

With the BRC, you can claim incentives under Merchandise Exports from India Scheme (MEIS) or<a href="https://www.skydo.com/blog/seis-guide"> Service Exports from India Scheme (SEIS)</a>. Under both schemes, you are allotted duty credit scrip that you can use to offset costs such as customs duties or central excise duties. The value of the credit scrip is 2%-5% of your free-on-board value in the case of MEIS and 3% to 5% of the net foreign exchange in the case of SEIS.&nbsp;

After you receive payment from your overseas client for the export, you need to obtain a<a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide"> Foreign Inward Remittance Advice (FIRA).</a> The FIRA mentions all the payments you have received from foreign countries for exports, freight, consultancy etc. Submit the FIRA to your bank; the bank will verify the payment details and match them with the exported goods using the shipping bill or SOFTEX form as a reference. Upon successful validation, the bank issues the e-BRC.&nbsp;

Here’s what happens after the e-BRC is issued:

Which Documents Are Required for a Bank Realisation Certificate?

You will need the following documents for the Bank Realisation Certificate:

How do you download the Bank Realisation Certificate?

This is the format of the e-BRC downloaded from the DGFT website. All the information is electronically filled out by the bank and sent to DGFT.

How to use your Bank Realisation Certificate to claim Incentives?

Here's a step-by-step process to use BRC to claim incentives for the export of goods to an overseas buyer:

It's also worth checking if the bank has submitted an error-free e-BRC which reflects the consolidated realisation value. Also keep in mind that you must enter freight values, insurance and commission values in the refund application, as the e-BRC excludes such values

Compliance sits at the centre of any export business. The high level of regulatory compliance ensures transparency in foreign trade transactions and prevents suspicious activities like money laundering. This protects the reputation of both the exporter and the financial institutions involved.

The Indian government is continuously working towards improving the current e-BRC system and making it more streamlined. The<a href="https://www.skydo.com/blog/e-brc-update"> e-BRC update of 2023</a> was a significant step towards achieving the goal. The enhanced e-BRC system allows exporters to self-certify their e-BRCs based on the Inward Remittance Messages (IRMs) sent to the DGFT server by the bank. Using your 10-digit alphanumeric IEC code, you will log in to the DGFT website to match the IRM details with the shipping bills or invoices. If they are accurate, you can go ahead and create the e-BRCs. This move will cut down both the processing time and operational costs and make the process more simple and transparent.

BRC is essential for businesses exporting goods and software covered under Softex. But if you don’t fall into this category, a<a href="https://www.skydo.com/blog/efirc-firc-brc-essentials-differences"> Foreign Inward Remittance Advice (FIRA)</a> is good enough to prove the receipt of payment from an international client.<a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online"> Generating a FIRA is effortless with trusted platforms like Skydo.&nbsp;</a>

Skydo allows you to receive international payments to your bank account at an upfront cost with no hidden fees. As and when an overseas payment gets credited to your bank account, an auto-generated FIRA is available for you to download.

large_Bank Realisation Certificate 

medium_Bank Realisation Certificate 

small_Bank Realisation Certificate 

thumbnail_Bank Realisation Certificate 

Bank Realisation Certificate 

Whether you’re sending money back home or paying a remote employee, you’ll need either an IFSC code or a SWIFT code based on where you’re transferring the funds. Both codes ensure a secure and standardised way to transfer money between accounts, but they’re NOT the same. Let's break down the key differences between SWIFT and IFSC codes.&nbsp;

Difference between SWIFT Code and IFSC Code: Explained

<a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide" target="_blank">SWIFT code </a>is a unique 8- or 11 character alphanumeric code that is assigned to banks and financial institutions. The SWIFT code in a standardized format contains essential details about the country, location&nbsp;and branch of a bank.&nbsp;

Here is the breakdown of two SWIFT codes for a better understanding:&nbsp;

SBININBB101: This unique code refers to the State Bank of India’s Mumbai office. "SBIN" is the bank code, "IN" stands for India, "BB" indicates Mumbai, and "101" denotes the branch in a specific locality.&nbsp;&nbsp;

DEUTDEFF500: This SWIFT code belongs to Deutsche Bank's Frankfurt branch in Germany. "DEUT" represents the bank, "DE" is for Germany, "FF" signifies Frankfurt, and "500" indicates the specific location of the bank branch at Bad Homburg, a town in the Frankfurt region.&nbsp;&nbsp;

A SWIFT code is used to identify banks globally and is crucial for secure international money transfers.

When your overseas client makes a SWIFT payment, they’ll need your bank’s SWIFT code. The sender’s bank will then send a secure SWIFT message to your domestic bank. Once your bank i.e. recipient bank receives the message, it processes the payment and credits the money to your account.&nbsp;Make sure to share the details of the correct bank and branch to ensure hassle-free transfers.

Know more about how to do a SWIFT transaction <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide" target="_blank">right here</a>.

Here’s how you can find your bank’s SWIFT code:&nbsp;

Bank Statements/Passbooks: Check your printed or online bank statements.

Bank Website: Visit your bank’s official website—SWIFT codes are often in the foreign transaction or FAQ section.

Mobile App: Some banks display their SWIFT code in their apps.

Local Branch: Ask for the SWIFT code in person at your bank branch.

Customer Service: Call your bank’s customer service to get the SWIFT code.

You can also find the <a href="https://www.skydo.com/swift-code-finder">SWIFT code for your bank right here.&nbsp;</a>

IFSC, or the Indian Financial System Code, is an 11-digit code with alphanumeric characters, that uniquely identifies each bank branch in India. It's essential for online transfer of funds via NEFT, RTGS, and IMPS, ensuring accurate identification of both the sending and receiving bank branches for smooth transactions.

Each bank branch in India has its own unique IFSC code. Here's what it signifies:

Here is the breakdown of two IFSC codes for a better understanding:&nbsp;

ICIC0000837: This unique code refers to ICICI Bank’s Park Street office in Kolkata. "ICIC" is the bank code, the fifth character of, 0 is for future use and the last 6 characters, 000837 denote the branch code.&nbsp;

HDFC0000053: This unique code refers to HDFC Bank’s Koramangala office in Bangalore. "HDFC" is the bank code, the fifth character, 0,&nbsp;is for future use and the last 6 characters, 000053 denote the branch code.&nbsp;

The IFSC code is essential for domestic fund transfers between bank accounts in India through RTGS and NEFT systems. Every time you send money to another bank, you'll need the beneficiary's bank name, account number, and IFSC code. It's a simple yet crucial part of making sure your funds reach the right account.

Here’s how you can find the IFSC code of your specific bank branch:

Cheque Book: You can find your bank’s IFSC code on the top left of your cheque leaf, just below the bank’s address.&nbsp;

RBI Website: You can also visit RBI website and enter your bank’s name and branch to get its IFSC code.&nbsp;

Bank Website: You can also visit the respective bank's website to know the IFSC code of your branch.&nbsp;

Can I use IFSC instead of SWIFT for international transfers?

No.
IFSC is not recognised by foreign banks as a routing code; they need SWIFT/BIC. Some foreign portals optionally ask for IFSC in addition to SWIFT when sending money to India, but SWIFT is the primary international identifier

Yes, the BIC (Bank Identifier Code) is the same as the SWIFT code. Both are used interchangeably and are used globally for international transfers.&nbsp;

Receive international payments Swiftly and seamlessly with Skydo

While SWIFT is the standard for cross-border payments, its high fees and slow processing times drive businesses toward better alternatives. Skydo offers a smarter solution with free <a href="https://www.skydo.com/blog/virtual-account-numbers" target="_blank">virtual accounts </a>in key regions like the US, UK, Europe, and more. These accounts allow businesses to receive payments via local transfers, bypassing costly SWIFT fees and delays.

For example, a US client can send a local transfer to your US virtual account, and Skydo consolidates and transfers the funds to India at live forex rates, ensuring full value. The money reaches your Indian bank account within 48 hours—faster, cheaper, and more transparent than SWIFT. Switch to Skydo today!

Are the IFSC and SWIFT codes the same? What you need to know

large_Are the IFSC and SWIFT codes the same? What you need to know

medium_Are the IFSC and SWIFT codes the same? What you need to know

small_Are the IFSC and SWIFT codes the same? What you need to know

thumbnail_Are the IFSC and SWIFT codes the same? What you need to know

You just invoiced a client in euros. The payment arrives in your Indian bank account… and it’s ₹500–₹5,000 short of what you expected.

Or you paid for a $99 tool using your Indian card, and the final INR debit looks oddly higher than the price tag.

That gap is the currency conversion fee,&nbsp; and the annoying part is: a big chunk of it often doesn’t show up as a “fee”. It hides inside the exchange rate you’re given.

Currency conversion fee vs foreign transaction fee (don’t mix these up)

These terms get thrown around like they’re the same thing. They’re not.

The conversion cost (or markup) applied when currency is exchanged.

An extra percentage charged by the card issuer for international usage, on top of conversion. Some issuers disclose this as a “conversion factor assessment” (for example, American Express India lists 3.50% for foreign currency transactions in its fee schedule).

Google shows you the mid-market rate (the real market rate banks trade at). But most consumer conversions don’t happen at that exact rate.

This is why obsessing over “0% fee” marketing doesn’t help unless you also check the actual rate you received.

How big are currency conversion fees, really?

It depends on the route. In practice, your “total FX cost” often lands in these rough bands:

Instead of memorising “typical %”, the best move is to compute your effective conversion fee (below). That gives you the truth for your account, your provider, that day.

Bank currency conversion fee: what actually happens

When an international payment reaches your bank account, conversion may happen:

That’s why two transfers of the same amount can land with different INR outcomes.

The practical takeaway: if you want to reduce bank currency conversion fees, reduce the number of conversion hops and avoid routes where unknown intermediaries can take a cut.

Credit/debit card currency conversion fees (and why they feel sneaky)

Some issuers are very explicit about this. For example, Amex India lists a 3.50% “Foreign Currency Transactions,&nbsp; Currency Conversion Factor Assessment”. 

PayPal currency conversion fee: why it’s so often higher

PayPal’s conversion model is structurally different from a bank transfer.

PayPal applies a “transaction exchange rate” when conversion is required. In many breakdowns of PayPal’s pricing, the conversion cost is described as a markup above a base/mid-market style rate (often referenced around 3–4%), and it’s embedded into the exchange rate you see.&nbsp;

Instead, you just get a weaker rate,&nbsp; and therefore less INR.

PayPal in India: the “automatic transfer” constraint

In India, PayPal doesn’t work like a multi-currency wallet for most users. PayPal states that manual transfers aren’t available and that it automatically transfers your PayPal balance to your local bank account every day, due to India’s regulations.

How to calculate your effective currency conversion fee (the only metric that matters)

Here’s the cleanest way to stop guessing.

Effective conversion fee % = [(Mid-market INR value − Actual INR) / Mid-market INR value] × 100

This reveals the true cost, including spread.

Effective fee = (84,000 − 80,808) / 84,000 = 3.8%

Do this across PayPal vs bank vs another platform, and the decision becomes obvious fast.

However, make sure to deduct other applicable transfer fees too, like transaction charges, before calculating the effective rate.&nbsp;

How to avoid currency conversion fees (methods that actually work)

This is where most articles turn into hacks and half-truths. Let’s keep it clean and real.

1) Use cards with lower international charges (if your spending is card-heavy)

If you pay for tools, ads, travel, or SaaS via card, your issuer-side international charges matter a lot (and some are explicitly high). Even moving from ~3.5% to ~0–1% on issuer fees can be meaningful at scale.&nbsp;

2) For getting paid internationally: reduce conversion hops

If your current flow is: client pays → platform converts → intermediary fees → bank converts again
…you’re paying multiple times.

A better structure is: client pays via a local rail → single conversion → INR settlement.

3) Don’t let PayPal set the exchange rate if you have a choice

PayPal’s conversion is often expensive because it’s bundled into its rate. If PayPal is convenient for small payments, fine — but for larger invoices, it’s worth sanity-checking your effective fee using the formula above.

4) Choose a setup that gives you transparent FX (so the spread can’t hide)

This is the simplest “adult” solution: pick a provider that clearly tells you:

The “avoid hidden FX markups” option for Indian businesses: Skydo

If you receive international payments in India, the easiest way to avoid the invisible FX tax is to remove the two biggest leak points: rate markups and messy conversion chains.

Skydo’s positioning is built around exactly that

If you want to be ruthless about costs, do this once: take your last $10,000 payment and compute the effective fee % for your current method vs a transparent live-FX method. That one comparison usually ends the debate.

Remitly Transfer (USD→INR): Fees, Limits, Compliance — and a Better Business Alternative

large_Remitly Transfer (USD→INR): Fees, Limits, Compliance — and a Better Business Alternative

medium_Remitly Transfer (USD→INR): Fees, Limits, Compliance — and a Better Business Alternative

small_Remitly Transfer (USD→INR): Fees, Limits, Compliance — and a Better Business Alternative

thumbnail_Remitly Transfer (USD→INR): Fees, Limits, Compliance — and a Better Business Alternative

If you sell globally from India, the first real question isn’t “Which provider is best?”