If you're a freelancer or a business owner working with international clients, you need an efficient and cost-effective payment processor for your global payments.

While <a href="https://www.paypal.com/in/home">PayPal</a> and <a href="https://stripe.com/in">Stripe</a> are popular payment solutions, they might not be the best fit for every business. Choosing the wrong payment gateway costs you money and your valuable time.

It's essential to be mindful of their drawbacks, including high transaction fees, substantial conversion charges, and regulatory complexities.&nbsp;

Despite their widespread usage, Stripe and PayPal charge high transaction fees, typically ranging from 1% to 4% of the transferred amount, in addition to currency conversion fees based on the payer's country. This complex fee structure poses challenges in accurately estimating overall costs beforehand.

Moreover, for Indian merchants, obtaining <a href="https://www.skydo.com/blog/all-you-need-to-know-about-FIRC-a-complete-guide?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Foreign Inward Remittance Advice (FIRA)</a> documents from Stripe and PayPal can be cumbersome, often taking several days to process. These delays in FIRA document processing lead to transaction delays, causing frustration and potentially hindering business growth.

These collective factors can hinder your profitability and growth. Numerous users of these platforms for digital payments have reported experiencing payment delays.

Here are some excerpts from unsatisfied customers highlighting their experiences.

Skydo: A cost-effective and more efficient alternative

Skydo is a cutting-edge international payment processor designed to streamline international transactions, offering you the best value for your money. It's designed to empower you to expand your business globally stress-free.

Why you should choose Skydo for your international payments

Skydo charges a flat fee of 19 USD for transactions up to 2,000 USD and 29 USD for transactions above 2,000 up to 10,000 USD. That's it – no hidden charges, no percentage games.&nbsp;

Skydo uses real-time exchange rates, offering an entirely transparent pricing model. Unlike Stripe and PayPal, there are no processing fees or FX markups. You receive the maximum value of your online payment and know your cost before transferring funds.

With Skydo, you can <a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">download all your FIRCs instantly</a> with just one click. It eliminates delays and ensures compliance.

We believe in complete transparency. With our <a href="https://www.skydo.com/blog/real-time-tracking-of-international-payments?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">real-time tracking feature</a>, you can monitor the status of your funds anytime you want.&nbsp;

You can check, generate, and send invoices, reminders for recurring payments, and up-to-date ledgers.&nbsp;

Using efficient payment solutions like SWIFT and NEFT, Skydo ensures your funds move promptly and securely. You can expect the funds in your virtual bank account to reach your Indian bank account in 18-24 hours.&nbsp;

Our customers endorse us for our transparency.

“Skydo is a fintech platform which brings transparency, speed &amp; efficiency to B2B cross-border payments. We, at Primathon, recently started using it. We made a USD 50k net worth of transactions so far and the experience is just wow 😍 ! From the onboarding process to transactions, everything is as optimised as it could be with added transparency. Folks in the B2B industry should learn from them! Other fellow founders in the services industry, give them a shot!” - Sagar Patidar, Founder &amp; CEO, Primathon on <a href="https://www.linkedin.com/posts/sagarpatidar_fintech-b2bpayments-appreciation-activity-7086641698872672256-Kd6s?utm_source=share&amp;utm_medium=member_desktop">LinkedIn</a>.

Skydo emerges as the best alternative to Stripe and PayPal in cost, transparency, and speed. You also get free <a href="https://www.skydo.com/blog/transforming-your-invoicing-experience-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">online invoicing</a>, instant FIRC and custom payment reminders.

With its transparent pricing structure, Skydo stands out from other payment processing companies. You can <a href="https://www.skydo.com/blog/cut-international-transaction-costs?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">unlock substantial savings of up to Rs. 10 lakh per annum</a> with Skydo.

Focus on your business as Skydo takes care of your global payments. It is secure, efficient, affordable, and reliable.

<a href="https://www.skydo.com?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Start your free trial today</a> and grow globally with Skydo!

Disclaimer: Please note that the information provided is accurate as of February 2024.

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<a href="https://www.skydo.com/blog/sole-proprietorship-vs-freelancer?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">An entrepreneur</a> is a jack of all trades who must ensure that every aspect of the business runs smoothly, such as accepting <a href="https://www.skydo.com/blog/what-are-embedded-payments?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">online payments</a> from customers without hassle.&nbsp;

Enter payment aggregators – the game-changers in simplifying the complexities of payment processing.

<a href="https://www.drishtiias.com/daily-updates/daily-news-analysis/payment-aggregators-1">Payment aggregators</a> are payment companies that work as third-party service providers to other companies to ensure their customers can pay online to buy products or services.&nbsp;

A payment aggregator example is when you visit an e-commerce platform and pay online without leaving the app. You can pay for the cart items because an online payment aggregator provides payment services to the e-commerce platform.&nbsp;

Payment aggregators in India work as intermediaries between merchants (businesses), their customers, and the financial institutions customers use to complete online payments.&nbsp;

As it is challenging for a business to partner with every Indian bank and NBFC, they onboard the services of a payment aggregator that serves as a middleman between the businesses, banks, and financial institutions.&nbsp;

Payment aggregators offer numerous payment services to <a href="https://www.skydo.com/blog/customer-journey-mapping-grow-it-business?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">businesses</a>, including debit cards, UPI, credit cards, no-cost EMIs, e-wallets, net banking, bank transfers, and e-mandates. Furthermore, they allow companies to internally pay various stakeholders, such as employees, suppliers, vendors, partners, and other authorities, for compliance.&nbsp;

With an online payment aggregator, <a href="https://worldline.com/en-ca/home/main-navigation/knowledge/knowledge-hub/blogs/what-is-a-payment-aggregator.html">here is how a payment gets processed</a>.

Here are some essential factors to consider before choosing a payment aggregator RBI for your business.

Benefits and Drawbacks of Using A Payment Aggregator&nbsp;

Using a payment aggregator offers several benefits for businesses.&nbsp;

Payment aggregators also provide convenient reporting and analytics tools, enabling businesses to track transaction data, monitor sales performance, and make data-driven decisions to optimise payment strategies.

However, there may be some drawbacks.&nbsp;

Payment aggregators offer businesses a convenient and efficient solution for processing online payments, streamlining operations, and enhancing the customer experience. However, analyse their benefits and drawbacks and compare them based on business-relevant factors to choose the best one for your business. 

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<a href="https://www.skydo.com/blog/set-up-your-freelance-international-bank-account-in-just-5-minutes?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Banking operations</a> previously required visiting branches. Today, they are being heavily digitised, as users want to have access to banking services instantly through their mobile phones or laptops.

A new player has emerged on the financial scene – the Neobank. With their <a href="https://www.skydo.com/blog/the-impact-of-open-banking?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">innovative approach to banking</a> and emphasis on digital-first solutions, neobanks are revolutionising the banking sector.

Neobank meaning or neo banking meaning refers to fintech (financial companies backed by tech) that carry out operations similar to banks but are entirely digital and rarely have physical branches.&nbsp;

Neobanks invest heavily in creating a digital-first banking system to provide <a href="https://www.skydo.com/blog/checklist-to-get-the-right-bank-for-your-export-service-firm?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">cutting-edge financial services</a> similar to any other traditional bank.&nbsp;

Neobanks are not directly governed and regulated by the RBI but have various banking partners such as HDFC, ICICI, and Axis Bank to assist them in providing financial services through their banking infrastructure and channels.&nbsp;

Neobanks offer banking services such as savings accounts, checking accounts, payment processing, money transfers, and sometimes lending services entirely online.&nbsp;

Neobanks leverage technology extensively to provide a seamless and convenient banking experience. They often incorporate advanced features such as instant money transfers, automated budgeting tools, personalised financial insights, and round-the-clock customer support through chatbots or online messaging.

Here is how you can open a Neobank account online.

There are more <a href="https://www.startuphrtoolkit.com/neobanks-in-india/">than 20 neobanks in India</a>. Thus, comparing them on their cost structure and services is important.&nbsp;

Download the mobile app of the neobank or visit their website to start the account registration process. You will have to provide personal details such as name, date of birth, address, email, phone number, and identification proofs such as PAN or Aadhar. Then, choose the type of account you want to open.&nbsp;

Once you have submitted the account opening application, the neobank verifies the provided information. After successful verification, they set up the account.&nbsp;

Step 4: Confirmation and Activation&nbsp;

Once all steps are completed, you will receive confirmation that your account has been successfully opened. You may need to activate your account by following the instructions provided by the neobank, such as verifying your email or phone number.

Some common features offered by the best neobanks in India include the following.

For a better understanding of neo-banking meaning, here are the pros and cons of neobanks.

India has numerous neobanks that offer their services with unique banking features. Here are the top <a href="https://www.startuphrtoolkit.com/neobanks-in-india/">10 popular neobanks examples in India</a>.

Neo banking services offer a compelling alternative to traditional banking, with a host of potential benefits and considerations for users to weigh. On one hand, the convenience, accessibility, and transparency of neobanks make <a href="https://www.skydo.com/blog/get-real-time-insights-for-analyzing-freelance-financial-goals?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">managing finances </a>easier and more efficient than ever before.

However, it's essential for users to also consider the limitations of neobanks, such as the lack of physical branches, the relative newness of some players, and concerns about data privacy. By weighing these factors carefully and understanding their individual banking needs and preferences, users can decide whether neobanks are the right fit for them.

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A foreign client pays $2000, but you get ~$1700 in your bank account, less than what you expected.&nbsp;

Now, you are trying to calculate the foreign transaction fee and foreign exchange rate (FX rate) and understand what other hidden charges have been levied but are facing a hard time doing so.

Many small businesses lose money because of a lack of transparency in foreign payments and <a href="https://www.skydo.com/blog/hidden-fees-in-bank-rates?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">hidden fees charged by banks</a> and other payment platforms.

How can you overcome this challenge? Switch to transparent payment solutions like Skydo that tell the live FX rates. Let’s understand how you can check real-time FX rates with Skydo and reduce unnecessary deductions.&nbsp;

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According to a <a href="https://www.swift.com/swift-lvp/assets/pdf/small_payments_big_opportunity_july_2023.pdf">report by SWIFT</a>, the three primary reasons that frustrate small business owners while using an international payment platform are:

Skydo aims to resolve these issues. It provides live FX rates on its dashboard and charges zero-margin on currency exchange so you don’t end up paying extra costs. Moreover, Skydo charges <a href="https://www.skydo.com/blog/cut-international-transaction-costs-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">flat foreign transaction fees,</a> thus ensuring complete transparency in foreign payments.

Here is how understanding live FX rates on Skydo can help your business.

<a href="https://www.skydo.com/blog/why-do-banks-differ-from-live-fx-rates-in-currency-exchange?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Bank FX rates</a> are usually different from the live FX rates. For example, if the $1 amounts to ₹83 as per the prevailing market rate, banks offer ₹80 for every $1. This is called the forex markup fee.

Businesses have to negotiate the FX rates with banks to ensure maximum earnings. However, Skydo offers live FX rates and converts the currency as per the prevailing market rate. This boosts your earnings.

Moreover, many businesses try to negotiate a fixed payment in INR with foreign clients to reduce the FX rate fluctuation risk.&nbsp;

Rapid fluctuations in the foreign exchange market increase business risk. However, by viewing live FX rates, you can analyse when to apply hedging strategies to secure your earnings.

Moreover, you can calculate your exact earnings based on the real-time FX rates and optimise your cash flow accordingly.&nbsp;

Staying updated with currency fluctuations is extremely important for businesses to adjust their pricing.&nbsp;

For example, if the value of the domestic currency increases against the foreign currency, the price of your goods and services will become higher for foreign customers. This will result in low demand.

Therefore, you should track live FX rates to set competitive pricing and boost revenue.

Ensuring Financial Transparency with Skydo

Tracking foreign payments is hard for businesses. Banks and foreign payment platforms make it harder by gatekeeping various costs involved.&nbsp;

But, Skydo offers complete transparency.&nbsp;

You can open an international bank accounts account with Skydo within five minutes and receive payments from foreign clients in international bank accounts.

You can view the live FX rate before transferring the money to your domestic bank account. If the international market is volatile, you can hold the money in your foreign bank account to avoid currency conversion losses.&nbsp;

Use Skydo's <a href="https://fx-calculator.skydo.com/comparison?utm_source=linkedin&amp;utm_medium=skydohandle&amp;utm_campaign=fxcalculator&amp;utm_content=2">FX calculator</a> to see how much money you can save on your FX rates based on your monthly revenue.

2. View a Clear Breakdown of Exchange Rates and Associated Costs

With Skydo, you are always updated on why your money is being deducted. You can view a clear breakdown of the flat transaction fee levied, the GST application to the transaction fee, and the FX rates for each invoice.

Moreover, Skydo also marks a date and time stamp during currency conversion to ensure that the money is converted as per prevailing market rates.

3. Zero Margin on Currency Conversion&nbsp;

Most payment platforms like PayPal and Payoneer charge a 3-5% currency conversion fee on top of the foreign transaction fee. Moreover, banks also charge forex fees on every transaction.

These additional costs reduce your earnings significantly, especially if you deal with many foreign clients.&nbsp;

However, Skydo charges zero margin for currency conversion. It converts the total amount based on the prevailing market rate without changing any forex fee. This increases your FX savings by up to 50%.

3. Pay Zero Fees to Download FIRA Receipts

FIRA is a mandatory document for exporters for GST compliance. Banks charge ₹500 or more on every foreign transaction to generate FIRA.

However, Skydo automatically generates FIRA receipts for each invoice without charging an additional fee. Therefore, it helps you <a href="https://www.skydo.com/blog/get-the-most-out-of-your-forex-savings-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">maximise FX savings</a>.

Expanding your business globally helps you increase earnings and scale your business. However, high forex fees, foreign transaction fees and hidden fees charged by payment platforms impact your earning potential and slow down business growth.

Therefore, you can track live FX rates through Skydo to maximise your FX savings.&nbsp;

<a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Sign up on Skydo today</a> to receive foreign payments at low costs!

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We understand the challenges of receiving payments from abroad. If you're an exporter, you need to obtain a Foreign Inward Remittance Advice (FIRA) from your bank as proof of receiving foreign funds. While FIRA is often confused with the Foreign Inward Remittance Certificate (FIRC), there’s a key difference between the two.

Before 2016, AD Category I Banks issued FIRCs to exporters, serving as proof of payment receipt and a crucial document for claiming export-related incentives like tax exemptions on foreign currency payments. In 2016, the RBI introduced the Export Data Processing Management System (EDPMS) to digitize export-related data. With EDPMS, the RBI mandated banks to stop issuing FIRC certificates for export collections, replacing them with FIRAs.

Now, FIRC certificate is issued only for specific transactions like receiving inward remittances from Foreign Direct Investments (FDI) and Foreign Institutional Investments (FII). If you’re receiving returns from foreign investments, you'll need a FIRC. For all other foreign payments, FIRA is what you need.

With this distinction clarified, let’s explore how to obtain your FIRC certificate or FIRA. 

How to get your FIRC certificate from the Bank?

As we've seen, you only need a FIRC certificate for specific transactions, like receiving inward remittances from foreign investments. For other export collections, a FIRA is required. However, obtaining these documents from the bank can be a time-consuming and often frustrating process.

Firstly, you need to submit a formal request to the bank, to obtain your FIRA/FIRC. Once submitted, banks typically take around 7-15 days to process the request and issue your FIRA or FIR certificate. Multiple follow-ups are often necessary, and banks may charge a fee of at least INR 400 for issuing a FIRA, depending on the institution.

Beyond banks: 4 seamless FIRC certificate providers

Banks have always been the go-to for cross-border transactions, and they still lead the way in handling international payments. But now, we’re seeing a wave of new fintech platforms that are not just making global payments easier but also simplifying compliance.

 Let's dive into these platforms that offer FIRA/FIRC certificate to users without all the hassle.

Skydo is a global payments platform designed to help businesses and freelancers receive international payments quickly, compliantly, and cost-effectively. Our fully automated system, integrated with bank partnerships, ensures seamless compliance with RBI guidelines—no manual intervention needed.

With Skydo, receiving export payments is a breeze. We automatically generate the required FIRA at no extra cost. Simply log into our <a href="https://www.skydo.com/blog/check-all-outstanding-invoices-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">user-friendly dashboard</a>, and you'll find your FIRA ready to download, complete with all the necessary details

Wise (formerly TransferWise) is a global money transfer platform operating in over 80 countries.&nbsp; While it initially started out as a peer-to-peer (P2P) remittance service, Wise has since diversified its offerings to cater to businesses by introducing multi-currency accounts for both individuals and enterprises.&nbsp;

Wise also issues digital FIRA or eFIRC as they call it for every international business payment. However, note that an additional fee is levied for the same depending on the currency of remittance. 

PayPal is a go-to payment solution worldwide, both for personal and business transactions.&nbsp; It offers a comprehensive ecosystem for payments, including e-commerce integration, invoicing, international money transfers, and credit/debit card services.&nbsp;

When it comes to ensuring compliance while receiving international payments, PayPal provides Indian businesses with monthly digital FIRA. This means that all international transactions of the previous month will be referenced in a single FIRA, which will only be available by the 15th of the subsequent month.&nbsp;

Founded in 2005, Payoneer is quickly becoming a popular payment solution for businesses and freelancers worldwide. It facilitates international transfers by providing users with virtual bank accounts in multiple currencies.&nbsp;

Payoneer simplifies compliance for Indian businesses by offering free digital FIRAs. All FIRAs are conveniently accessible in one designated place, and they can be downloaded in bulk if needed. 

FIRA is a crucial part of the international payments puzzle, serving as proof of receipt and a key to claiming government export incentives. With Skydo, every transaction comes with an automated FIRA at no extra cost. Switch to Skydo today and simplify your compliance effortlessly.

Step-by-Step: Obtaining Your FIRC Certificate

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As a freelancer working with international clients, you gain access to exciting opportunities and diverse revenue streams. However, this also brings additional compliance requirements you need to be aware of. Every time you receive a foreign payment, you must obtain a Foreign Inward Remittance Advice (FIRA) from your bank. This document serves as proof of receiving international funds.

In this blog, we will explore everything you need to know about Foreign Inward Remittance Advice (FIRA) and why it is crucial for freelancers dealing with foreign payments.

A Foreign Inward Remittance Advice (FIRA) is a document issued by Indian banks to Indian exporters and freelancers who receive foreign payments.

Before 2016, banks issued <a href="https://www.skydo.com/blog/all-you-need-to-know-about-FIRC-a-complete-guide">Foreign Inward Remittance Certificates (FIRC)</a> as proof of receiving global payments. However, in 2016, the RBI introduced the Export Data Processing Management System (EDPMS) to digitally record all export-related data.

With EDPMS in place, the RBI instructed banks to stop issuing FIRCs for export collections. Banks now provide FIRA (Foreign Inward Remittance Advice) instead of FIRCs for export collections and foreign payments. Anyone receiving foreign payments, including freelancers, needs to obtain FIRA.

<a href="https://juspay.in/blog/payments/foreign-inward-remittance-certificate">Failure to obtain a FIRA</a> can lead to monetary loss as you will have to pay GST on the export income received in India. However, you may face penalties for non-compliance with foreign exchange regulations at the time of audits if <a href="https://www.skydo.com/blog/transforming-your-invoicing-experience-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">proper documentation</a>, such as FIRA, is not maintained.&nbsp;

Suppose you are looking for a loan from a financial institution. In that case, the institution asks for proof of income that serves as the reference point for the institution to either accept or reject the loan application. Here, you can submit FIRA as proof of income.&nbsp;

Furthermore, FIRA can also be used for VISA applications or anywhere as proof of income.&nbsp;<a href="https://www.linkedin.com/in/juhi-shah-633127154/?no_follow=true">Juhi Shah,</a> a seasoned Chartered Accounting professional states:

"FIRA plays a crucial role in establishing financial credibility and stability, particularly in cross-border transactions. These certificates serve as verifiable proof of income from international sources, bolstering confidence among lenders, investors, and immigration authorities."

By providing FIRCs as supporting documentation, taxpayers demonstrate their commitment to compliance and reduce the risk of penalties or legal consequences for underreporting income.

Additionally, you can claim tax benefits or exemptions under the Double Taxation Avoidance Agreements (DTAA).

<a href="https://www.linkedin.com/in/ravi-mamodiya-5b635779/">Ravi Mamodiya</a>, a tax advisor highlighted the potential financial and legal implications of ignoring FIRAs:

"Ignoring FIRCs may result in inaccurate tax reporting, leading to penalties, fines, and potential legal actions by tax authorities. Additionally, non-compliance with tax laws erodes trust with regulatory agencies and may tarnish your reputation as a taxpayer. Hence, it is important to maintain FIRAs."

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

Getting a FIRA 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 FIRA for you at no extra cost. Just log into our user-friendly dashboard, and you'll find your FIRA ready to download, complete with all the details you need.

Freelancers have fluctuating incomes and are solely responsible for fulfilling the taxation and regulatory compliance for <a href="https://www.skydo.com/blog/how-you-can-streamline-international-transactions-for-your-business?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">inward and outward remittance</a>. In case a freelancer has foreign clients and receives foreign remittances, it is vital to obtain FIRA either for the bank or the <a href="https://www.skydo.com/?https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">digital currency platform.&nbsp;</a>

FIRAs streamline income reporting to tax authorities, reducing complexities and minimising the risk of penalties for non-compliance. By documenting foreign remittances, freelancers can accurately report their earnings, fulfil their tax obligations, and build credibility with regulatory agencies.

Q1. Can all banks issue physical FIRCs?&nbsp;

Ans: RBI has discontinued the permission for banks to issue physical FIRCs/FIRAs after 2016 unless it is against Foreign Direct Investment or Foreign Institutional Investment. Currently, only AD Category-I banks are allowed to issue e-FIRAs (FIRAs in electronic format).&nbsp;

Q2. Do I need a separate FIRA for each client or project?

Ans: No, you do not need a separate FIRA for each client or project. All foreign remittances received during a particular time frame, regardless of the client or project, can be covered by a single FIRA issued by your bank.

Q3. What documents do I need to apply for FIRA, and how long does it take?

Ans: If you are requesting FIRA from a bank, <a href="https://cleartax.in/s/foreign-inward-remittance-certificate">you need to provide information</a> included in the FIRC certificate format, such as beneficiary name, name and address of the payee, UTR number, recipient’s name, purpose, date and amount of transfer, and the recipient’s account number. However, if you are receiving foreign remittances through digital platforms like <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo,</a> you don’t have to submit any documents. FIRA is generated automatically and instantly with every payment.&nbsp;

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When receiving payments in foreign currencies from clients, the first question is whether you, as a freelancer, can accept foreign remittances directly into your Indian bank accounts.&nbsp;

The answer is yes, but freelancers must consider various other details and factors regarding receiving foreign remittances into their bank accounts.&nbsp;

The Reserve Bank of India allows Indian citizens to receive foreign remittances into their savings bank account without any restrictions (apart from remittance under the Foreign Contribution Regulation Act, 1976). However, the receiving method may vary.&nbsp;

The sender initiates an international wire transfer through their bank (correspondent bank). The process involves providing necessary details such as the recipient's name, account number, SWIFT code, and sometimes an IBAN.&nbsp;

SWIFT code is a unique identification code assigned to banks and financial institutions worldwide to identify a specific bank when making international wire transfers between banks.&nbsp;

IBAN is a standard international numbering system developed to identify bank accounts uniquely.&nbsp;

Money transfer services, like Western Union, allow individuals to deposit cash or use their debit/credit card to send money to someone in another country.&nbsp;

You can visit their transfer outlet, give them cash, and they send the money to their foreign office. The recipient in the other country visits the local office to collect funds after providing the necessary information.&nbsp;

Online payment platforms like <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo</a>, PayPal, and others allow users to send and receive payments digitally through a virtual currency account. The users can deposit the funds into their bank accounts by converting the currency per the foreign exchange rate and paying the applicable conversion fee.&nbsp;

Yes, the Reserve Bank of India allows Indian citizens to use their <a href="https://www.rbi.org.in/commonperson/english/scripts/FAQs.aspx?Id=1692#:~:text=Yes%2C%20foreign%20inward%20remittances%20received,%2C%20NEFT%2C%20IMPS%2C%20etc">bank accounts to receive foreign remittances.</a>&nbsp;

Under the scheme for foreign remittance, there are no restrictions on the number of remittances and the remittance amount. However, trade-related transactions have an upper cap of Rs 15 lakh.&nbsp;

Should I Use My Savings Accounts For Foreign Remittances?

In India, income earned through business activities is subject to taxation under the Income Tax Act. Mixing personal and business transactions in a savings account can complicate tax reporting and may lead to difficulty in calculating business income and deductions.

Businesses in India must file various tax returns and reports, including income tax returns, <a href="https://www.skydo.com/blog/gst-requirements-international-service-sales?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Goods and Services Tax (GST) returns</a>, and annual financial statements. Receiving business funds in a savings account can make compiling accurate financial records and reports more difficult, leading to potential compliance issues and penalties for incorrect or incomplete reporting.

If you are not an Indian citizen, you might want to explore opening an <a href="https://www.dominion.com/offshore/are-offshore-accounts-legal">offshore bank account </a>in India to manage your international payments more effectively.

Receiving the Remittance: Step-by-Step Guide

Here is the detailed process to receive foreign remittances into your savings bank account.

Step 1: Provide Your Bank Account Information

Provide the sender with all the bank account information, such as your bank name, account number, branch name, IFSC code, SWIFT code, and IBAN (if applicable).&nbsp;

Wait for the sender to initiate the fund transfer and send you a payment confirmation with the reference number and the expected amount.&nbsp;

Depending on the chosen method, the funds may take some time to reflect in the bank account. Ensure you get a credit confirmation for the funds, which you can communicate with the sender.&nbsp;

Step 4: Foreign Inward Remittance Advice (FIRA)

Once you receive the amount in your bank account, contact your bank and provide them with all the necessary information to obtain the FIRA. It is a required document that acts as a proof of inward remittance. You can send a copy of this certificate to the sender.&nbsp;

The timeframe for the overseas money transfer depends on the <a href="https://wise.com/in/blog/sbi-international-money-transfer">mode of payment chosen by the sender.</a> For example, express remit money transfers take 1-3 business days, international wire transfers take 1-2 business days, and demand drafts take 7-28 business days. Furthermore, there may be delays in executing the payment because of currency conversion or bank verification processes. Depending on the payment urgency, you can request the sender to choose a specific mode to transfer funds into your savings account.&nbsp;

Skydo: An Alternative to Savings Accounts&nbsp;

Foreign Currency Accounts, Non-Resident External Accounts (NRE), and Foreign Currency Non-Resident Deposits (FCNR) are savings account alternatives to receive foreign payments.&nbsp;

Since these accounts are specially designed for executing cross-border transactions, they offer higher interests and protection against exchange rate fluctuations.&nbsp;

However, opening and maintaining such accounts can be time-consuming, complex, and prone to higher regulatory and taxation compliance. If you are a service provider or a business owner with frequent inward remittances, a digital global transaction platform such as Skydo is advisable.&nbsp;

With <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo</a>, you can create <a href="https://www.skydo.com/blog/seamless-payment-experience-with-international-bank-accounts?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">instant virtual currency accounts</a> to receive international payments in various foreign currencies in your savings account.

Furthermore, you can create professional <a href="https://www.skydo.com/blog/how-to-file-taxes-under-44ada?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">GST-compliant</a> Invoices effortlessly and share them with the sender.&nbsp;

Once you receive the remitted money in your bank account in INR, the income is treated as taxable and is added to your taxable income for the assessment year.&nbsp;

Receiving foreign remittances in a savings account may offer convenience, especially for those who have recently started to receive foreign funds with lower frequency. However, if the inward remittance is frequent, there are better alternatives to choose and receive funds, such as <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo.</a> You can visit <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo</a> for consultation and opening an <a href="https://www.skydo.com/blog/seamless-payment-experience-with-international-bank-accounts?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">instant virtual currency account</a>.&nbsp;

Analyse and compare all the available foreign currency transfer options based on individual or business preferences, conversion fees, and the nature of the transaction.&nbsp;

Q1. What are the limitations on receiving business funds through a savings account?

Ans: The limitations include limited business banking features, regulatory compliance issues, processing delays, limited transaction and withdrawal volume and lower interest rates.&nbsp;

Q2. How long does it usually take to receive the remittance after it's sent?

Ans: The remit money timeframe entirely depends on the communication between the sender’s and the receiver’s bank and the chosen payment methods. Overall, the remittance may take 1-5 business days in case of digital transfer.&nbsp;

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