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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Inward remittance simply means receiving funds from abroad in your bank account in India. As per <a href="https://publications.iom.int/books/world-migration-report-2024">Global Migration Report</a>,&nbsp;India stands as the largest recipient of inward remittance globally, thanks to globalization which has enabled Indians to travel outside for work as well as enabled Indian residents to work with global clients remotely.

Getting money from abroad—whether it’s payment from a client or a transfer from family—can feel a bit overwhelming. It’s not as straightforward as domestic transfers, thanks to forex rates, international systems, and RBI guidelines.

But don’t worry. In this blog, we’ll break down everything about inward remittance—what the rules are, how to keep your money safe, how long it takes, and the easiest ways to manage it. Plus, we’ll show you how Skydo can make receiving global payments faster, simpler, and more affordable. Let’s dive in!

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

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

What are the FEMA Guidelines for Inward Remittance in India?

In India, the RBI and <a href="https://enforcementdirectorate.gov.in/fema">FEMA</a> (Foreign Exchange Management Act) have set out <a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance">specific guidelines</a> for receiving inward remittances in India:&nbsp;

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

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

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

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

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

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

The list of necessary documents you will need to accept foreign inward remittances will depend on whether it’s a personal transfer or a business payment. We have shared the list for both the categories here:

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

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

How Do You Receive Inward Remittance in India?

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

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

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

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

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

What Are The Bank Charges for Inward Remittances?

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

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

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

PayPal Charges for Receiving Inward Remittance

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

International virtual accounts Charges for Receiving Inward Remittance

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

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

Is There Tax on Inward Remittance in India?

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

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

How Much Inward Remittance is allowed in India?

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

Receive Business Inward Remittance Seamlessly with Skydo

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

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Foreign Remittance in India

If you’ve been searching for the IBAN number of Indian banks like HDFC IBAN Number, Bank,<a href="https://www.skydo.com/blog/iban-number-meaning-full-form"> IBAN number </a>of SBI, ICICI bank IBAN number, Axis Bank IBAN Number, or Canara Bank IBAN Number, here’s what you need to know: India does not use the IBAN system. IBAN (International Bank Account Number) is primarily used in Europe and some other regions for facilitating cross-border payments.&nbsp;

HDFC Bank does not provide IBAN numbers, as India does not use the IBAN system for international transactions. Instead, you will need the SWIFT code, account number, and branch details to receive foreign payments. The SWIFT code for HDFC bank’s Mumbai Headquarter is HDFCINBB:

Click here to find the <a href="https://www.skydo.com/swift-code-finder">right SWIFT code for your bank</a>

SBI does not have IBAN numbers because India’s banking system operates with SWIFT codes and IFSC codes for international and domestic transactions. Foreign clients sending payments to SBI accounts will need the SWIFT code and account details instead of an IBAN.

&nbsp;The SWIFT code for SBI’s Agartala branch is SBININBB476:

Axis Bank, like other Indian banks, does not support the IBAN system. Cross-border payments to Axis Bank accounts require SWIFT codes and account information, not IBAN numbers.

&nbsp;The SWIFT code for Axis Bank’s Ahmedabad branch is AXISINBB008:

ICICI Bank, like all other Indian Banks, does not offer an IBAN number. Cross-border payments to ICICI Bank accounts require SWIFT codes and account information, not IBAN numbers.

&nbsp;The SWIFT code for ICICI Bank’s Delhi branch is ICICINBB007:

Canara Bank does not use or provide IBAN numbers, as India’s international payment system relies on SWIFT codes. You’ll need to share your SWIFT code, branch details, and account number to receive international payments.

&nbsp;The SWIFT code for Canara Bank’s Bangalore branch is CNRBINBBLFD:

Indian banks use alternative identifiers like <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide#what-is-a-swift-money-code">SWIFT codes</a> for international transactions and IFSC codes for domestic transfers. Since India does not follow the IBAN system, these codes ensure seamless routing of payments within and outside the country.

While IBANs are commonly required for cross-border payments to many countries, international transfers to Indian banks only require the recipient’s account number, SWIFT code, and bank address. Providing these details accurately ensures smooth processing and avoids delays or rejections. You can also r<a href="https://www.skydo.com/">eceive SWIFT payments via Skydo</a> seamlessly. You can also find the<a href="https://www.skydo.com/swift-code-finder">&nbsp;right SWIFT code for your bank right here</a>.&nbsp;

How Skydo Simplifies International Payments

Managing international payments through traditional banks can be complicated and expensive for Indian businesses and freelancers. Skydo offers a more practical alternative—virtual accounts in 7+ regions that make it easier for your global clients to pay you without the need for IBANs.

&nbsp;With real-time FX rates and no hidden forex markups, you keep more of what you earn. Our flat fees—$19 for payments under $2,000 and $29 for payments up to $10,000—mean no unpleasant surprises.

Plus, we ensure 100% compliance with Indian regulations and provide instant FIRA at no extra cost. With Skydo, international payments become simple, cost-effective, and stress-free, letting you focus on growing your business without worrying about banking complexities.

IBAN number of HDFC Bank, ICICI Bank, SBI Bank and more: All You Need to Know

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With global payments projected to reach <a href="https://www.jpmorgan.com/insights/payments/cross-border-payments/digital-innovation-transforming-cross-border-payments">$290 trillion by 2030,</a> the need to streamline international transactions is greater than ever. International Bank Account Number (IBAN or IBAN Number) is a key tool in this effort, providing a standardized way to identify overseas bank accounts. So, let’s dive in and explore what is IBAN number? What it looks like, and how you can get one for your <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">international money transfers.</a>

IBAN full form is International Bank Account Number. It establishes a standardised numbering system to identify overseas bank accounts. Unlike a SWIFT code, which identifies a bank, the IBAN number specifically points to an individual bank account.

Initially adopted in European countries, IBAN numbers are primarily used for international transfers. However, in countries like <a href="https://www.iban.com/iban-mandatory" target="_blank">Austria, Belarus, and Belgium,</a> the IBAN number format is mandatory for both international wire transfers and domestic transfers.

It's important to understand that an IBAN number doesn’t replace your regular bank account number. Instead, it adds extra account details that make cross-border transactions smoother and more accurate.&nbsp;

Up next, we’ll explore IBAN examples and break down its key components.&nbsp;

While an IBAN includes your account number, it doesn’t replace it. Instead, it adds essential details to streamline and ensure accuracy in cross-border transactions.

An IBAN number can have up to 34 alphanumeric characters in a specific format. The number of characters depends on the key fields covered in the IBAN number which include: 

Country Code: A two-letter ISO code that represents the country where the account is held.

Check Digits: These are 2 unique digits generated by the bank to validate the IBAN.

Bank Identifier Code:&nbsp;The bank code identifies the specific financial institution/ bank where the account is.

Branch Identifier: Some IBAN numbers may also have branch identifiers that specify the particular branch of the bank

Basic Bank Account Number (BBAN): This section identifies the individual account within the bank in that specific country.

Consider the following hypothetical IBAN number example:&nbsp;GB29 NWBK 6016 1331 9268 19.

Now let’s see the various components of this IBAN&nbsp;number:

Let’s take another such IBAN number example and break it down:

IBAN Number: FR76 3000 6000 0112 3456 78901&nbsp;

Here’s how you can find your IBAN Number&nbsp;

You can use an <a href="https://www.iban.com/calculate-iban" target="_blank">IBAN calculator </a>by entering your sort code and account number. But remember—always double-check the IBAN number before sending money to ensure that you are making the transfer to the correct bank account. A quick review can save you the headache of cancellation or wrong transfers!

Let's take a minute to understand the difference between IBAN number and <a href="https://www.skydo.com/swift-code-finder">SWIFT code</a>. Both IBAN numbers and SWIFT codes both play a crucial role in international bank transfers, but they serve different purposes. It’s easy to confuse the two, but here’s how they differ:

Yes, sharing your IBAN for international transactions is safe. It’s just your regular account number with added details like the country and bank codes, making it easier to identify your account globally. 

Indian banks do not provide IBAN number since India doesn’t use IBAN system for international transfers. Instead, they primarily rely on the SWIFT system to facilitate these transactions to a foreign bank account. <a href="https://www.skydo.com/" target="_blank">You can receive your SWIFT transfers through Skydo seamlessly</a>.

Numerous countries like the United States, and Canada also do not participate in the IBAN system and do not issue IBAN numbers. You can learn more about <a href="https://www.skydo.com/blog/iban-number-of-hdfc-bank-icici-bank-sbi-bank-and-more-all-you-need-to-know">HDFC IBAN number</a>, <a href="https://www.skydo.com/blog/iban-number-of-hdfc-bank-icici-bank-sbi-bank-and-more-all-you-need-to-know">IBAN number ICICI bank</a>, <a href="https://www.skydo.com/blog/iban-number-of-hdfc-bank-icici-bank-sbi-bank-and-more-all-you-need-to-know">Axis Bank IBAN</a> number <a href="https://www.skydo.com/blog/iban-number-of-hdfc-bank-icici-bank-sbi-bank-and-more-all-you-need-to-know">right here.&nbsp;</a>

IBAN codes are mainly used in the European Union, along with countries like Hungary, Liechtenstein, Norway, Switzerland, and are increasingly adopted in regions like the Middle East.

No, IFSC stands for <a href="https://www.skydo.com/blog/is-ifsc-and-swift-code-same" target="_blank">Indian Financial System Code</a>, which identifies bank branches for domestic transactions in India. In contrast, IBAN provides a standardised method for identifying overseas bank accounts for cross-border transactions.

Open Virtual International Bank Accounts With Skydo

If you're seeking a practical alternative for your cross-border payments, Skydo is here to help. With Skydo, you can set up<a href="https://www.skydo.com/blog/virtual-account-numbers" target="_blank"> virtual international accounts</a> in just five minutes, making it easier to do business in regions like the US, Europe, Singapore, and Australia.

These virtual bank accounts function like local bank accounts, allowing your clients to make payments as if they were transferring funds domestically. This means you can bypass SWIFT fees and the complexities of the IBAN system, streamlining your payment process significantly.

Skydo enhances your experience further by offering live Forex rates with no hidden charges or currency conversion fees. To keep you compliant with RBI and government regulations, you'll receive instant FIRA downloads after each transaction. Plus, each user is paired with a dedicated representative who is always available to guide you and answer any questions.

Make the switch to Skydo today and simplify your international payment experience.

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IBAN Number Full Form , Meaning 

If you've ever sent or received a <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT payment </a>(international bank transfer via the SWIFT network), you’ve probably come across the term "MT103." It’s a document issued by the sender’s bank, detailing essential information such as the sender, recipient, forex rate, and other crucial transfer details. In this article, we’ll break down what MT103 is, why it’s important, and how you can obtain it.

MT103 is a standardized SWIFT message sent from the sender’s bank to the recipient’s bank during an international transfer. It acts as a formal receipt that includes the transaction details like your name, the recipient’s name, the amount, and currency. Your bank securely sends this document via the SWIFT network to the recipient’s bank. Once verified, the recipient's bank credits the account. You can request for SWIFT MT103 document from your bank which will contain all necessary details about the transaction, like your name, the recipient’s information, the amount, currency, and <a href="https://www.skydo.com/blog/is-ifsc-and-swift-code-same">SWIFT/BIC code.</a>

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

What is MT103&nbsp;SWIFT document used for?

While you may not necessarily need MT103 for every overseas SWIFT transaction, here’s why it is important:

SWIFT MT103 acts like your receipt for an international transfer. If you're the sender, you can provide this to the recipient as proof that the payment has been made. If you're the receiver, you can request the MT103 to confirm that the payment is on its way.

MT103 enables easy payment tracking, giving you full visibility into the payment’s journey. If a payment gets delayed, for instance, at an intermediary bank, the MT103 allows your bank to trace and resolve the issue faster.

Thanks to its standardized format, MT103 ensures smooth and efficient communication between different banks, making international transfers less complex and more transparent.

An MT103 SWIFT message contains all the details necessary for processing a transfer. Here’s what a typical MT103 includes:

All this information helps ensure that the transaction flows smoothly and gets where it needs to go.

As we mentioned, the format of the SWIFT MT103 message may vary across banks. However, every MT103 message will have certain tags using which you can decode the MT103 message. Here we will be describing all the mandatory tags that are present in every MT103 SWIFT message and a few optional ones:

Beyond the mandatory tags, MT103 SWIFT message may also contain a few optional tags including:

When you make a SWIFT transfer, your bank automatically generates an MT103. However, you won’t receive this document unless you request it. Contact your bank to issue an MT103, although some banks may charge a fee, and it could take a few days to process.

If you’re awaiting a payment from a client, ask them to request the MT103 from their bank and share it with you.

If you're sending a SWIFT transfer, you can request the MT103 from your bank. If you're receiving the payment, ask your client to request it from their bank and share it with you.

Delays in SWIFT payments are common, especially when intermediary banks are involved, which can be frustrating for both the sender and receiver. Here’s how you can track the status of your SWIFT payment:

SWIFT GPI: The SWIFT Global Payments Innovation (GPI) enables banks to offer real-time payment tracking. So if you have your MT103 or received the MT103 for your payer, you can contact your bank to track the payment using SWIFT GPI and share the updates with you whether it's sent, in progress, or received.&nbsp;

Bank Portals: Many banks now offer tracking tools via their online banking platforms. You can use your MT103 reference number to monitor your SWIFT payment’s progress. If you prefer, you can also reach out to your bank directly for updates.

Independent Tools: There are also certain third-party tools and platforms that allow you to check the status of your payment independently,&nbsp;

Make the most of your international payments with Skydo

While SWIFT remains a popular choice for cross-border transfers, it’s no secret that these transactions can be both costly and time-consuming. As a result, businesses are increasingly seeking alternatives.

That’s where platforms like Skydo come in. Skydo helps businesses in India receive international payments securely, seamlessly, and affordably. With free <a href="https://www.skydo.com/blog/virtual-account-numbers">virtual accounts</a> in major regions like the US, UK, Europe, Canada, Australia, and Singapore, businesses can receive payments through local transfers—bypassing hefty SWIFT fees, and long processing times. With real-time tracking, you can see exactly where your payment is at every stage—no need to hassle with getting an MT103 or jumping through hoops to track it.

Make the switch to Skydo today and experience a faster, more cost-effective way to receive international payments.

MT103 swift message: Format, Fields and How to get it

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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 standardized 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.

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