As Indian businesses expand globally, managing payments in multiple currencies has become more than just a convenience; it’s a competitive edge.

Whether you're an exporter billing clients in USD or a SaaS company offering subscriptions in EUR and GBP, a multi-currency account can simplify how you receive, hold, and manage your international earnings.

But what exactly is a multi-currency account? And why is it becoming essential for modern Indian businesses?

A multi-currency account (sometimes called a foreign currency account or international account) lets individuals or businesses receive, hold, and send money in multiple currencies from a single platform.

Unlike traditional bank accounts that immediately convert foreign currency to INR (often with heavy fees), multicurrency accounts let you:

For example, if you have received payment from an international client from the US in USD, you can hold the payment in USD in your multi-currency account. If you have to pay a client in USD, you can use the current funds for direct payment without converting your local currency to USD.

Some multi-currency accounts come with additional features which can help in increasing the return potential. For example, some multi-currency accounts may offer interest on the balances held in different currencies, while some may offer access to foreign exchange markets.&nbsp;

Which Currencies Can I Hold in a Multi Currency Account?

The accepted currencies in a multi-currency account range between 30-200, depending on the financial institution. However, a multi-currency account facilitates, at minimum, transacting in the following currencies.

Benefits of Multi-Currency Accounts for Indian Businesses

1. Save More by Converting When It Makes Sense

A big perk of a multi currency account is that you don’t have to convert money right away. You can hold on to your earnings in USD or EUR and convert them when the exchange rate is better. Over time, this can add up, especially compared to traditional bank accounts that charge ₹750–₹1000 per transaction just to convert your money.

2. Lower Fees, Less Money Lost in Conversion

If you’re dealing with international payments regularly, small fees can eat into your income. A multi currency bank account typically charges much less in conversion fees compared to regular methods, and that means you keep more of what you earn.

If you’re getting paid in different currencies, tracking it all can be messy. A multi currency account in India helps you keep everything in one place—whether it's dollars, euros, or pounds. That makes your bookkeeping and accounting a lot less painful.

When payments don’t need to go through currency conversion each time, they move faster. A multi currency bank account can help you get your money sooner, without the usual back and forth or waiting around.

Having a multi-currency account can make your business feel more established, especially to international clients. It shows that you're set up to work globally, which builds trust from the start.

6. A Smoother Experience for Your Clients

Getting paid should be easy, for you and for your clients. A multi currency account lets your clients pay in their own currency, which feels more familiar and hassle-free on their end.

7. Helps You Pay International Partners More Easily

Whether you’re working with vendors, freelancers, or service providers abroad, being able to pay them quickly, in their own currency, goes a long way. A multi currency account in India makes this part of the job feel a lot less complicated.

How Can You Get a Multi Currency Account in India?

Most leading banks in India, including HDFC, DBS, HSBC, and others, offer multi currency accounts. However, today, fintech platforms are truly leading the way with multi currency accounts right now. Platforms like Skydo, Wise, Stripe offer mutli currency accounts, enabling businesses to manage their income and payments in multiple currencies. Here's why FinTech-led multi-currency accounts have an edge over multi currency accounts offered by traditional banks:

When deciding where to open your account, carefully assess factors like fees, services, and customer support from each institution. Additionally, ensure that the chosen account supports the currencies relevant to your usage.

Who Is Qualified for a Multicurrency Account?

You must be 18 and above to open a multicurrency account, and certain accounts are restricted to residents of specific countries. Meeting minimum balance requirements may also be necessary. Some multi-currency accounts cater to businesses or high-net-worth individuals, imposing relatively high minimum balance criteria.

Potential beneficiaries of multicurrency accounts include the following.

Final Thoughts: Why a Multi-Currency Account Isn’t Optional Anymore

If you work with international clients—whether you're a growing exporter, a SaaS founder, or a freelancer—sticking to traditional bank transfers or high-fee platforms like PayPal or SWIFT is holding you back.

A multi-currency account in India isn’t just a nice-to-have anymore—it’s a core tool for doing global business right.

In short: A good multicurrency bank account puts you in control of your money, your timelines, and your global growth.

Looking to switch? Skydo offers multi-currency accounts tailored to Indian businesses and freelancers, with no forex markup and fast settlements.

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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. 

FIRC full form is Foreign Inward Remittance Certificate, and it serves as an official proof that money has been remitted into India from a foreign sourceskydo.com. In simpler terms, a FIRC is a document issued by an Indian bank to verify and record details of an incoming foreign payment – including the sender, recipient, amount, and purpose of the transactiondbs.com. 

This certificate is crucial in the Indian context as it ensures your foreign earnings are transparent, properly documented, and compliant with regulations. In this guide, we’ll explain what FIRC means, why it’s important, how it works under RBI rules, and how Indian businesses or freelancers can obtain and use FIRC effectively.

FIRC stands for Foreign Inward Remittance Certificate, and as the name suggests, it is a certificate provided by banks in India to verify a foreign currency remittance received in the country. The FIRC contains important information such as the amount received, the foreign sender’s and Indian recipient’s details, and the reason for the payment. Essentially, it’s a tangible proof of an inward remittance – functioning as a testimonial that an individual or business in India has received a payment from abroad.&nbsp;

FIRCs have historically been issued by Authorized Dealer (AD) banks whenever an export payment or any foreign inward payment came in. For example, if an exporter in Mumbai sells goods to a buyer in Europe and receives the payment in USD into her Indian bank account, the bank would issue a FIRC confirming that the foreign payment was received. This document legitimizes the transaction and is often required by various authorities for reference. Only banks licensed as Authorised Dealer Category I by the Reserve Bank of India (RBI) can issue FIRCs, since they are the ones permitted to handle foreign exchange transactions in India.&nbsp;

It’s important to note that “FIRC” is sometimes used informally to refer to similar documents like Foreign Inward Remittance Advice (FIRA) or Foreign Inward Remittance Statement (FIRS). We will discuss these terms later, but broadly speaking, all of them serve a similar purpose: proving that a foreign remittance was received. In summary, a FIRC (Foreign Inward Remittance Certificate) is the official proof of foreign money coming into India, making it an indispensable document for cross-border payments.

Whether you are an Indian exporter, a service provider, or a freelancer, obtaining a FIRC (or its equivalent advice) for your foreign earnings is very important. Here are the key reasons why FIRCs matter:

In summary, the FIRC is more than just a piece of paper – it is essential for compliance, for availing financial benefits, and for maintaining clean financial records of foreign income.&nbsp;Especially in India’s tightly regulated foreign exchange environment, this certificate (or its modern digital equivalent) becomes a cornerstone for anyone dealing with international payments.

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:

In conversations around FIRC, there are a few more terms that get frequently mentioned, one of them being eFIRC. So what exactly is <a href="https://www.skydo.com/blog/efirc-firc-brc-essentials-differences">eFIRC?</a>

Two acronyms often discussed together are FIRC and BRC. They are related but not the same thing. We’ve explained FIRC (proof of receiving foreign payment). BRC stands for Bank Realisation Certificate. Here’s how they differ and how they work together, especially for exporters:

In summary, BRC is the second step in the documentation chain for exports: first get your FIRC/FIRA (proof of payment), then that leads to a BRC (proof that payment matches an export transaction). Both are important for exporters, but they serve different (complementary) purposes.&nbsp; This decison tree will help you decide if and when will you need FIRC/BRC

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: 

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

Obtaining a FIRC or the equivalent remittance certificate is not an automatic process in many banks – often, you need to request it. Here’s a step-by-step on how Indian businesses or freelancers can get their FIRC/FIRA from the bank:

<a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online">Getting a FIRC</a> might sound like a hassle, but with Skydo, it's a breeze. Our fully automated payment system along with built-in partnerships with banks, ensures effortless compliance with RBI guidelines, without needing any manual intervention.

When you receive an export payment through Skydo, we automatically generate the required FIRC for you at no extra cost. Just log into our user-friendly dashboard, and you'll find your FIRC ready to download, complete with all the details you need. 

Exporting goods and services is considered Zero-Rated Supply, meaning it is subject to 0% GST. However, to claim a GST refund for the input tax credit, exporters must provide the required documents including FIRC. These documents authenticate that the business is claiming a refund because it exported services and couldn't offset its input tax credit as it would in normal domestic business. Without FIRC, claiming a GST refund may not be possible

As we surge in cross-border transactions, ensuring compliance and safeguarding against illicit activities has become a pressing concern. However, at Skydo, we believe your focus should be on advancing your business, not on grappling with compliance challenges.

With Skydo, enjoy seamless international payments, delivered promptly and without any hidden fees. But that's just the beginning! Every time you receive a cross-border payment, an auto-generated FIRC is readily available for you to download, relieving you of compliance burdens so you can devote your energy to what truly matters: driving your business forward.

Foreign Inward Remittance Certificate (FIRC): Full form, meaning and RBI guidelines

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Selling globally on Amazon is a game-changer for Indian businesses, but it comes at a cost. From Amazon’s referral commissions to hefty currency conversion markups, fees can eat into your profits. In this guide, we break down every Amazon seller fee you must know for 2025 and share practical tips to reduce these fees. Whether you’re new to Amazon Global Selling or looking to boost your margins, read on to ensure you’re not leaving money on the table.

Overview: What Does It Cost to Sell on Amazon Globally?

Here's a quick snapshot of what you have to pay to sell on Amazon globally:

Some Amazon fees are non-negotiable; they’re the cost of doing business on the platform. But many others, like fulfillment, storage, and conversion charges, can be reduced with smarter planning, better tools, and the right partners. The key is knowing which ones you can control and how.

&nbsp;Amazon Seller Fees Breakdown (2025) – Detailed Fees Explanation

In this section, we will give a detailed breakdown of each of these fees and see if there's a way to optimize those.&nbsp;&nbsp;

Amazon offers two types of selling plans depending on the size of your business:

Tips to reduce fees: Choose the right selling plan based on your volume. If you sell fewer than 40 items a month, the Individual plan (with a per-item fee) keeps costs low. But if you're scaling or consistently selling more, the Professional plan waives per-item charges and unlocks bulk listing tools, saving you more in the long run.&nbsp;

In addition to the selling plan, Amazon charges a referral fee on the item price for every product sold. Think of it as Amazon seller commission. This fee is a percentage of the total sale price or a minimum flat amount, whichever is higher, and these fees vary based on product categories.&nbsp;

Tip to reduce fees:&nbsp;Factor Amazon’s referral fees into your pricing from day one. Since these fees vary by category (some go as high as 45%), avoid low-margin products in high-fee categories unless you’re confident about volume. Also, watch for fee jumps at certain price points.&nbsp; For example, if watches above ₹5,000 have an extra 3% fee, pricing just under that can save you more than you’d expect

Other Amazon Fees (Closing Fee, High-Volume Listing, etc.)

Media items are charged a closing fee for each unit sold in addition to other fees. These items include: Books, DVD, Music, Software &amp; Computer/Video Games, Video Game Consoles, and Video Game Accessories. The closing fee is <a href="https://sellercentral.amazon.com/help/hub/reference/external/GKD9U5REK5DKB38Y?initialSessionID=142-6432681-1885860&amp;ld=NSGoogle&amp;ldStackingCodes=AGSSEMkenshoo_525X19824_e_c_718783564496_asret_%3ENSGoogle%3EAGSSEMkenshoo_525X19824_e_c_718783564496_asret_%3ENSGoogle#wjz_cjc_jcb-3" target="_blank">$1.80 per unit </a>sold for products in these categories.&nbsp;

If you offer textbook rentals on Amazon, you’ll have to pay a rental book service fee of $5.00 for each rental as part of Amazon Seller fees.

If you have a large number of active, non-media listings that haven’t sold in 12 months, Amazon charges a monthly fee of $0.005 per eligible listing to cover cataloguing costs. The first 100,000 listings are, however, exempt from this fee.&nbsp;

Tips to Reduce Fees: Regularly clean up your listings. Remove inactive SKUs that aren’t moving to prevent high-volume listing fees and keep your account healthy.

While these Amazon seller fees apply to all sellers, there are additional charges for optional services. One such service is Fulfillment by Amazon (FBA), which many exporters use to streamline shipping and logistics. Understanding these optional fees is just as important. Here’s a breakdown,

Logistics is a critical part of ensuring your products reach customers on time and in top quality. As an Amazon Global Seller, you have two options for shipping:

If you don’t have a robust logistics setup and looking for an easy ship option, FBA can be a great option to save time and reduce the stress of managing export logistics. Here’s a breakdown of FBA fees:

This Amazon seller fees covers picking, packing, shipping, handling, customer service, and returns. The costs depend on your product's volumetric weight, dimensions, and category (e.g., apparel vs. non-apparel).

You can get the complete list of FBA fulfilment fees as per product sizes<a href="https://sellercentral.amazon.com/help/hub/reference/external/GPDC3KPYAGDTVDJP" target="_blank"> right here</a>.

Tips to reduce fees:&nbsp;Be strategic with fulfillment. If a product has low margins or sells slowly, use self-fulfillment (MFN) to avoid FBA fees. Save FBA for fast-moving, high-margin items where Prime boosts sales. Also, optimising your packaging, reducing product size or bundling smartly, can keep you in a lower weight tier and cut fees significantly.

To promote your products on Amazon, you can leverage their advertising services. This program allows you to run impactful campaigns directly in the Amazon store, with the flexibility to set your own bids and budgets.

Amazon offers a range of ad formats, including video, audio, and display ads, tailored to fit different marketing needs. Most Amazon ads operate on a Cost Per Click (CPC) model, meaning you only pay when someone clicks on your ad. <a href="https://sell.amazon.com/advertising" target="_blank">Learn more about it here</a>.&nbsp;

Tips to reduce fees:&nbsp;Use promotions strategically. Do not rely solely on fee-based promos; sometimes investing in Amazon PPC ads (which at least directly drive sales) might yield better ROI than spending on a coupon that now also incurs a percentage fee.&nbsp;

Amazon also offers a range of additional services like Buy with Prime and Amazon Customer Service. The Amazon seller fees for these services vary based on the specific options you choose and your business needs.

Hidden Fee:&nbsp; Withdrawing Your Amazon Earnings (Forex &amp; Conversion Costs)

Once Amazon pays you (after all the above fees), there’s another cost many sellers overlook: Getting your money back to India. There are primarily two ways through which you can withdraw your Amazon earnings:

Let’s break down the costs of withdrawing your earnings through each platform.

As an Indian exporter on Amazon, you can use Amazon’s Currency Converter for Sellers (ACCS) to withdraw your earnings. Amazon automatically converts your payments into INR and deposits them into your bank account within 1-5 business days.

You can receive payments in 20+ currencies without needing a foreign bank account. However, the conversion comes at a cost. Amazon uses a volume-based pricing model, which means the higher your earnings, the lower the conversion fee. Also, note that the volume-based pricing is based on your total cross-currency net proceeds during the past 12 months. Here’s how the pricing works:

Let’s break this down with a real example.

Say you earned $200,000 last year after deducting all applicable fees. If you choose to withdraw using Amazon’s Currency Converter, here’s what happens:

Total Cost of Using Amazon’s Currency Converter:

₹2,59,500 (conversion fee) + ₹2,95,500 (forex loss) = ₹5,55,000 lost

5.5 lakh (over $7,000) is lost to conversion when using Amazon’s default method. That’s money the seller could have kept

Payoneer and PingPong are well-known platforms for cross-border payments, helping exporters worldwide withdraw their Amazon Global Selling earnings directly into their bank accounts. But how much does it really cost?

Let’s break this down with the same $200,000 earnings example:

So, you have to pay 2000 dollars or INR&nbsp;1,73,000 in fees&nbsp;while withdrawing your&nbsp;earnings&nbsp;via Payoneer or PingPong.

Skydo is an Indian-origin, RBI authorised cross-border payments platform designed to help Indian exporters maximize their international earnings. With <a href="https://www.skydo.com/amazon-global-sellers" target="_blank">direct integration with Amazon Global Selling</a>, Skydo allows you to withdraw funds at live forex rates with minimal fees—ensuring you keep more of your hard-earned money. Find out how&nbsp;

Unlike Amazon and other third-party platforms, Skydo applies zero forex markup. This means if the live exchange rate is ₹86.5 per USD, your funds are converted at that exact rate—without any deductions.

With Skydo, you only pay a flat $600 (₹51,900) and don’t lose a single rupee to hidden forex markups—making it the most transparent and cost-effective way to withdraw your Amazon earnings. ​​

Tip to Reduce Fees:&nbsp;To save 50% or more on your Amazon payout fees, consider using Skydo or a similar RBI-authorized platform instead of Amazon’s default. Skydo users get live forex rates, zero markup, and only a tiny transaction fee, as the example shows. Sign up now to retain more of your earnings.

Tips to Reduce Amazon Seller Fees and Boost Profit&nbsp;

Save on Amazon Seller Fees with Skydo&nbsp;

Amazon and third-party platforms like PingPong and Payoneer eat into your earnings with hidden forex markups and hefty withdrawal fees. Skydo changes that. With live forex rates and transparent pricing, you keep more of what you earn.

Plus, every global payment comes with free, instant FIRA, and if you ever need help, our India-based support team has your back.

Why let unnecessary fees eat into your profits? Switch to Skydo today and maximize your Amazon Global Selling earnings.

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Banks dominated the traditional banking system in India for decades. You might recollect visiting the closest bank branch to open an account or for money transfers. But visits to physical branches were often frustrating due to long queues and slow processing time.

However, in the last 5 years, the banking sector saw the rise of Neobanks, fully digital banking platforms. These banks have emerged as a popular alternative to traditional banks – about <a href="https://www.marketsandata.com/industry-reports/india-neobanking-market">26%</a> of the Indian population were using Neobanks in 2023 – especially among millennials and Gen Zs.

In this blog, we will tell you every essential detail about Neobanks you must know like the definition of Neobanks, their features, and advantages and disadvantages.

Neobanks have brought in a new wave of banking services in India. The biggest differentiator with a traditional bank is the absence of physical branches. They operate entirely online and provide the usual banking services digitally without a single brick-and-mortar branch.

The term Neobank is made of two words "Neo" and "bank". The word "Neo" means New, however, they cannot be technically called as a "bank" because they cannot apply for a banking license from the Reserve Bank of India (RBI). The RBI doesn't allow 100% digital banking operations in banks. However, these Neobanks can tie up with traditional banks like IDFC and ICICI to provide banking services.

The lack of a banking license doesn't restrict Neobanks from offering a range of financial services similar to conventional banks. You can open bank accounts, avail credit, and engage in online investment options from a single digital interface. The Neobank's model cuts through the frustrations of traditional banking processes like lengthy documentation and offers a seamless experience - one of the prime drivers for tech-savvy customers to prefer Neobanks

What Are the Unique Features of NeoBanks in India?

Here's a list of five features that make Neobank popular:

Neobanks provide their services through digital banking that's why there are no traditional physical branch networks. This benefits customers as they can access any banking service from anywhere and anytime mostly using a mobile app.

One of the biggest reasons behind the rise of Neobanks in India is its technology-led banking services. These services are designed in a way that they match the digital lifestyle of the younger generation. For example, mobile apps are simple and have a clean interface similar to any other app. The learning curve is low, so the customer quickly learns how to open a savings account or transfer money from the app. Additionally, Neobank apps are secure with biometric authentication and offer integration with other digital platforms.

Neobanks leverage AI and data analytics to analyze customer behaviour and offer personalized banking experiences like tailored saving plans or budgeting strategies. For example, the Neobank app might highlight the specific category in which you made frequent purchases last month so you can optimize the spending going ahead.

Neobanks have a low-cost operational model because there is zero spending on maintaining physical branch location. This allows them to pass on the benefits to account holders like lower fees and competitive interest rates.

Most Neobanks have a built-in spending analytics feature that categorizes your expenses into different categories like groceries, entertainment, and travel. This allows you to visualize the spending patterns and take active steps to use money more effectively.

Short-Term Goal-Specific Investment

Neobanks cater to their clientele by providing an option to save money for short-term goals like a vacation or buying a new mobile phone and earning interest on the savings. Customers can create buckets for goals, track progress, and stay motivated. This savings mechanism inculcates a proactive approach to saving and financial discipline.

Cashback and rewards programs incentivize customers to use their services. For example, a customer earns cashback using the Neobank virtual payment cards on certain purchases. Instead of a cashback, they might receive reward points which they can redeem later as discounts on future transactions. Such services enhance the banking experience and encourage customers to use the Neobank for more purchases.

Neobanking is one of the fastest-growing markets in India. It is expected to grow at a three-year compound annual Growth Rate (CAGR) of<a href="https://fintechnews.sg/72636/fintech-india/india-neobanking-sector-poised-for-50-5-annual-growth-through-2025/#:~:text=India%20Neobanking%20Sector%20Poised%20for,Growth%20Through%202025%20%2D%20Fintech%20Singapore"> 50.5%</a> in the fiscal 2025 and to reach<a href="https://inc42.com/features/decoding-indian-neobanking-funding-landscape/"> $183 billion</a> in valuation by 2030. The future of Neobanks is promising and you might expect to see more of them in the coming days, but here's a list of the biggest Neobanks presently operating in India:

Niyo targets travellers and blue-collar workers offering them specialized services like travel cards and salary accounts with attractive benefits. Niyo's goal is financial inclusion by providing access to users unfamiliar with formal banking services.

Founded in 2019, Jupiter attracted more than<a href="https://www.thearcweb.com/article/nbfc-jupiter-revenue-jitendra-gupta-neobank-sequoia-O8Icbunk7NbkYJ5Z"> 2 million users</a> soon after its launch. It offers digital savings accounts in partnership with Federal Bank and provides debit cards and personalized spending insights.

Founded by ex-Googlers, Fi Money offers unique features like group saving goals and peer-to-peer payments

Freo is a credit-led Neobank that serves as a single place for customers to pay with UPI, buy insurance, invest in FDs, and take loans. It offers Freo card, a credit card in partnership with Yes Bank which has no joining or renewal fees and offers generous rewards and fuel surcharge waivers. Freo Pay is another product that lets you shop with UPI transactions, but pay the amount 30 days later.

With the growth of SME founders, Open fills in the gap for modern banking solutions tailored to their requirements. Open allows business owners to connect multiple business accounts and track payments in one place seamlessly. It also allows them to create GST-compliant invoices to get paid on time.

Here are the four benefits of Neobanks that might convince you to give their services a try:

Convenience is the prime reason why many opt for Neobanks over traditional banks. Imagine no long queues or visits to the bank to avail of a loan. Neobanks gives you access to the core banking services right from your home with a stellar customer experience.

Fast services like quick account opening and fast online transfers provide the freedom to concentrate on other important aspects. This is especially true if you are an entrepreneur. Using digital bank services, you can spend more time on growing your business than spending hours on simple banking operations

Neobanks don't have to spend on traditional banking infrastructure keeping their overhead costs low. This gives them the leeway to offer banking services at comparatively lower fees. Zero balance facilities and minimal transaction fees are the most popular ways Neobanks keep its services cost-effective.

Unique Features by Leveraging Technology

Neobanks uses Artificial Intelligence (AI) to study spending habits and offer financial insights. With a rewards program, they incentivize users to spend responsibly. This makes banking more engaging and effective for modern consumers.

Neobanks also have disadvantages, here are the four most common:

While a 100% digital banking experience is convenient for many users, it can be a major disadvantage for other customers. This group of customers prefer face-to-face interactions especially when need assistance with complex banking financial transactions.

Neobanks do not have banking licenses issued by the RBI. This might concern a few users as Neobanks do not fall under the strict radar of financial regulations.&nbsp; A sudden RBI regulation to oversee Neobanks might raise many questions about their operations.

Limited Services Compared to Traditional Banks

In terms of services, most Neobanks are behind traditional banks. A wide range of loan products, wealth management services, and investment advisory are a few services that might leave some customer needs unmet.

As Neobanks operate only as a digital platform, they are more susceptible to cybersecurity threats. However, Neobanks take various security measures to protect customers from fraud. As a customer, you must remain vigilant while completing financial transactions online.

Receive 100% Safe and Compliant International Payments with Skydo

While Neobanks has shifted traditional banking towards digital, tech-savvy experience, they are not the only ones. Virtual banking account platforms like Skydo, offer digital platforms to business owners, exporters, and freelancers to receive international payment. Compared to traditional banks, Skydo is quick, affordable, and transparent.

Once your client pays in an international currency, it's converted to Indian Rupee (INR) based on real-time rates and credited to your bank account in 24-48 hours. Skydo also keeps your business compliant with regulatory norms by offering free Foreign Inward Remittance Advice (FIRA) for every transaction.

Sign up for Skydo in less than 5 minutes and start accepting international payments.

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If you plan to expand your freelancing or export business to Canada, you will probably wonder: How will my clients transfer money from Canada to India?

Deciding on how your Canada-based clients pay you is not an easy decision. There are multiple ways through which your clients can transfer money from Canada to India and each has a different fee structure and settlement duration. Most of your confusion will be cleared after you read this blog.&nbsp; We have covered all the essential details about each payment method like fees, payment duration, and documentation.&nbsp;

By the end of this blog, you will be much closer to choosing the right payment partner. Note that in this blog, we will mostly be focussing on business payments and no&nbsp;

What Are the Ways to Transfer Money from Canada to India?

Here are the most popular ways for your clients to transfer money from Canada to India:

Banks use international wire transfers to transfer money from Canada to India. It is definitely the most popular way to transfer across borders, but it comes with its own caveats which we will look. into later in the blog.&nbsp;

This method allows businesses to make payments and transfer money from Canada to India through credit or debit cards. PayPal is a popular example of a payment gateway.

Platforms like Skydo, Wise, and Payoneer offer virtual accounts which are digital accounts linked to your physical bank account and these accounts provide an easy and affordable way to transfer money from Canada to India.&nbsp;

Wise P2P and Western Union fall into this category and these are mostly used for personal transfers. These platforms also do not provide FIRA for receiving international payments, which can make compliance harder for you.&nbsp;

How Much Time It Takes to Transfer Money From Canada to India

The duration of transferring and receiving money from Canada depends on the payment method. Here’s a quick breakdown of each method:

It can take 1 to 7 days to&nbsp; transfer money from Canada to India via bank transfer. For example, a <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT transfer</a> takes 5 business days to complete. However, it can take longer if multiple intermediary banks are involved in the settlement process.&nbsp;

If your client in Canada transfers money to you in India via PayPal, then it money appears in your PayPal account quickly, but it might take another <a href="https://www.paypal.com/in/cshelp/article/how-do-i-transfer-funds-to-my-bank-account-help394">5 business days</a> for PayPal to credit the amount to your bank account

International virtual accounts are the modern way to make cross border payments. These are virtual bank accounts tied to your main bank account in India. So your client in can pay you in your virtual bank account in Canada, making it a local transfer instead of an international one, bypassing SWIFT fee.&nbsp;

Virtual account platforms are faster than bank transfers, but the duration of completing a cross-border payment depends on the platform. For example, Skydo settles&nbsp; payments within 24-48 hours

These platforms take 1-5 business days to credit the amount in your bank account. 

What Are the Fees for Transferring Money from Canada to India?

Fees are a key factor when choosing a payment partner. High platform fees reduce the amount you receive, and in most cases, the cost to transfer money from Canada to India is passed on to the receiver.&nbsp;In addition to high fees, transparency is also an important factor. Here’s the fee breakdown to help you make the right choice:

Bank fee structure is complex because the fees depend on the sending as well as the receiving bank. If your clients transfers you money from Canada to India, then they will have to pay a SWIFT fee, roughly ranging between CAD 15 to CAD 80, depending on the bank and they will mostly pass this fee on you. Further, your receiving bank in India, may also charge a fee for receiving an international payment.&nbsp;

Banks also do not provide a live exchange rate by charging a forex markup. For example, if the exchange rate of the Canadian Dollar (CAD) to the Indian Rupee (INR) is Rs. 60, the banks might offer Rs. 58 – a loss of Rs.2 for every dollar. In addition, banks charge a fee to issue FIRA which starts at Rs. 200.&nbsp;

<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">Payment gateways like PayPal </a>charge 4.4% of the amount as a transaction fee and 0.30 CAD as a fixed fee. So if your client transfers money from Canda to you in India via PayPal, you will have to pay 4.4% as transaction fee plus 0.30 CAD as fixed fee. Further it also levies a 4% markup on the ongoing exchange rate meaning you will effective exchange rate for converting CAD to INR will be 4% lower than the live forex rate.&nbsp;

The fee for international virtual accounts depends on the platform you choose. While there are no SWIFT fees involved while receiving money via international virtual accounts, different platforms levy their respective fee Here we have illustrated the fees for popular platforms like Wise, Skydo, and Payoneer.&nbsp;

Remittance platforms like Western Union, charge fees in the range of CAD 5 to CAD 50 based on the service speed and payment method.

What Documents Are Needed to Transfer Money&nbsp; from Canada to India

For your client to transfer money from Canada to India, you would need to share your respective details with them, including your name, bank account details and SWIFT code for a<a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide"> SWIFT transfer</a>. They may also need to share some identity proof if required by the bank.&nbsp;

The receiver, in this case the freelancer or business in India, also need to share certain documents and information while receiving the payment as well as while sharing your invoice

<a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance#what-are-the-documents-required-for-inward-remittance-in-india">Documentation in inward remittance</a> is an important step, more so when you are receiving a payment from Canada and not just a personal transfer.&nbsp;

Without proper knowledge about documentation, you cannot collect the payment. Here’s a list of documents to help you with the right documents

Identification Proof: Any government-issued document like an Aadhar card, Passport, Voter ID card or Driving license will fall into this category

Bank Account Details: Your payment might get delayed without the right banking account details. Always double-check your account details like account number, branch details, and IFSC before you share with your clients.&nbsp;

Purpose Code: The <a href="https://www.skydo.com/blog/what-is-purpose-code-and-why-is-it-required">Purpose Code</a> defines the nature and purpose of the fund transfer. These codes are alphanumeric and are managed by the Reserve Bank of India (RBI) to regulate cross-border payments in and out of the country. For example, if you provide software consultancy to Canada-based clients, you must mention P0802 as the Purpose Code on your invoice.&nbsp;

<a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">Foreign Inward Remittance Advice(FIRA):</a> FIRA is a document issued by banks as proof that you have received payment in foreign currency in India. It’s useful for filing taxes and if you’re an exporter, it’s also useful to claim tax deductions and GST refunds.

<a href="https://www.skydo.com/blog/bank-realisation-certificate-all-you-need-to-know">Bank Realisation Certificate (BRC)</a>: A BRC is essential for exporters selling software or providing services about it because it falls under SOFTEX. SOFTEX is a form issued by the RBI and must be mandatorily filled out by software exporters. This document is irrelevant if you’re a freelancer or an exporter with no relation to software.&nbsp;

Choosing the Best Way to Transfer Money from Canada to India

Despite the above breakdown, it’s hard to decide the best payment method for your business. It depends on what’s most important for you. Low fees, fast transfers, real-time exchange rate or all of the above? To help you decide, we have rounded up all the above points in this section.

Banks, as trusted financial institutions, must have been at the top of your mind, when contemplating you can your client can transfer money from Canada to India. However, receiving your international payments via banks might not be the best and most affordable option for you especially if you are a freelancer or small business not processing huge volume of payments.&nbsp;

For starters, a SWIFT transfer takes 2 to 7 business days to settle a payment. It can take more time if there are many intermediary banks or due to incorrect details.&nbsp;

In addition to slow settlement, high fees take a deep cut out of your income. As we've mentioned, SWIFT transfer via banks will cost around CAD 15 to CAD 80 in SWIFT fee, which will mostly be passed on to you by your client. Then there will be unfavourable exchange rate offered by the bank, which will further eat into your income. Let's understand this with a quick example. 

Suppose your client is transferring a payment of CAD 10,000 to you via banks. So first there will be a SWIFT fee of say around CAD 50 to transfer the money from Canada to India, which mostly will be adjusted by payment making it CAD 9950. Now, this CAD 9950 will be converted in INR by your bank.&nbsp; Consider the ongoing exchange rate to be 1 CAD = INR 61. However, most banks levy a 2-3% forex markup, so your effective exchange rate will stand at say INR 59. So you will receive 9950*59 = INR 5,87,050 from your bank.&nbsp;

So for your payment of CAD 10,000, which ideally should have been INR 6,10,000, you will receive&nbsp; INR 5,87,050, a difference of INR 22,950 lost to fees and forex markups.&nbsp;

Additionally, collecting FIRA requires multiple follow-ups with your bank, often incurring extra charges—adding to the hassle

Banks might be a reliable option for large businesses handling high volumes of international payments as they can negotiate exchange rates and also get personalized services. However, for small and medium businesses, and freelancers, banks might be an expensive and time-consuming option.

PayPal is another popular platform to transfer international payments from Canada. But it might not be the best option for receiving all kinds of payments.&nbsp;

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