Inform Your AD Bank About a New Receiving Channel
TL;DR - Summary
- What is an AD bank and why does it matter for receiving international payments? - An AD (Authorised Dealer) bank is the bank licensed by RBI to handle foreign currency transactions and report all inward remittances to RBI on behalf of its account holder, and for most Indian freelancers it is the bank where their current or savings account sits.
- Why do you need to inform your AD bank about a new receiving channel? - You need to inform your AD bank about a new receiving channel because every inward remittance into India must be traceable to a known, declared channel under RBI's foreign exchange reporting framework under FEMA.
- What steps do you follow to inform your AD bank about a new receiving channel? - To inform your AD bank about a new receiving channel, you write to your AD bank branch, identify the new channel clearly, share its account or routing details, attach supporting documents, and request written acknowledgement.
- What happens if you don't inform your AD bank about a new receiving channel? - If you don't inform your AD bank about a new receiving channel, the first payment arriving through it may be flagged as an unregistered inward remittance, and a flagged payment can be put on hold, which delays settlement and can complicate FIRC issuance.
What Is an AD Bank and What Does It Do?
An AD (Authorised Dealer) bank is the bank licensed by RBI to handle foreign currency transactions and report all inward remittances to RBI on behalf of its account holder.
For most Indian freelancers and service exporters, the AD bank is simply the bank where their current or savings account sits, the one into which foreign payments ultimately land.
Take a Bengaluru-based UX designer invoicing a US client $2,000. Her HDFC current account is her AD bank. It receives the wire, reports it to RBI, and issues her Foreign Inward Remittance Certificate (FIRC).
Why Do You Need to Inform Your AD Bank When Adding a New Receiving Channel?
You need to inform your AD bank when adding a new receiving channel because every inward remittance into India must be traceable to a known, declared channel. This is part of RBI's foreign exchange reporting framework under FEMA.
Your AD bank is responsible for matching incoming foreign currency to a known source and account holder. An undeclared channel creates a reporting gap that the bank cannot reconcile. RBI's framework requires channel transparency for every route through which foreign currency enters India, whether or not that route is a payment aggregator.
When you add a payment aggregator (like Skydo) or a new virtual account alongside your existing bank account, that new channel has its own SWIFT details, virtual account numbers, or local routing identifiers. Your AD bank knows none of them unless you tell it. Adding a payment aggregator is different from opening a new bank account, but it still creates a new inward remittance path your AD bank needs to know about.
Without notification, a payment arriving through the new channel may appear to your AD bank as an unregistered inward remittance, which triggers a compliance flag.
Which Types of Receiving Channels Require AD Bank Notification?
Any channel through which foreign currency is routed into India and eventually settles into your Indian bank account requires your AD bank to be aware of it. Three broad channel types are relevant to Indian freelancers and exporters: a traditional bank-to-bank wire (SWIFT), an RBI-authorised payment aggregator such as Skydo, and foreign currency virtual accounts in currencies like USD, EUR and GBP.
- Traditional bank-to-bank wire (SWIFT): A foreign client sends a wire directly to your Indian bank account using your SWIFT/IFSC details. Your AD bank already knows this channel, but you still need to notify it if you switch banks or add a new account.
- RBI-authorised payment aggregator (e.g. Skydo): A licensed aggregator receives the foreign currency on your behalf, then settles INR into your linked Indian bank account. This is a distinct channel with its own virtual account numbers, and you must declare it to your AD bank.
- Foreign currency virtual accounts (USD, EUR, GBP, etc.): Platforms like Skydo offer these, and they give your client a local account number to pay into. The details differ from your Indian bank's SWIFT details, and you must register them with your AD bank. For a closer look, see virtual accounts vs local banks.
The key test: if the inward remittance will arrive under a name, account number, or routing detail that your AD bank has not seen before, it requires notification.
Steps to Inform Your AD Bank About a New Receiving Channel
To inform your AD bank about a new receiving channel, write to your AD bank branch, identify the new channel clearly, share its account or routing details, attach supporting documents, and ask the bank to acknowledge the change in writing.
- Write to your AD bank branch: Send a formal written communication. Email to your branch RM or relationship desk is acceptable at most banks, while some require a physical letter. Address it to the branch where your current or savings account is held.
- Identify the new channel clearly: State the name of the platform or service (e.g. "Skydo Technologies Pvt Ltd, an RBI-authorised payment aggregator"), the type of channel (payment aggregator / virtual account / new bank account), and the purpose (receiving export proceeds / freelance income).
- Share the new channel's account or routing details: Include the virtual account number(s), SWIFT/IBAN details, or local currency routing numbers as applicable. For Skydo, this would include the USD/EUR/GBP virtual account details provided at signup.
- Attach supporting documents: Include your KYC documents, the new channel's RBI authorisation proof (if it's an aggregator), and any agreement or onboarding confirmation from the platform.
- Request written acknowledgement: Ask your bank to confirm in writing that the new channel has been noted against your account. This acknowledgement is your compliance record.
A phone call to your bank isn't enough, because verbal communication leaves no paper trail. Always follow up in writing.
Sample Email to Your AD Bank
Email template
Notify your bank of a new payment channel
Dear [Bank / relationship manager name],
I am writing to inform you that I have added [Channel name], an RBI-authorised payment aggregator, as an additional channel to receive international payments from my foreign clients.
My payments will henceforth also arrive via [virtual account details / SWIFT details]. I request you to note this against my account [account number] and confirm the same in writing.
Attached are [KYC / platform authorisation documents].
Kind regards,
[Your name]
[Account number]
[Contact details]
If the new channel you are adding is Skydo, your FIRC is auto-generated for every transaction and the full compliance paper trail is built in. That makes AD bank communication and future RBI documentation significantly simpler. See how Skydo works.
What Documents Do You Need When Notifying Your AD Bank?
The documents you need depend on the type of receiving channel you are adding. KYC (PAN, Aadhaar, passport) is required for all three channel types: a traditional bank (SWIFT), an RBI-authorised payment aggregator, and a new virtual account. An aggregator or a new virtual account also needs the platform's RBI authorisation and the virtual account details, while a traditional bank needs bank account proof for a new account.
| Document | Traditional Bank (SWIFT) | RBI-Authorised Payment Aggregator | New Virtual Account |
|---|---|---|---|
| KYC (PAN, Aadhaar, passport) | Required | Required | Required |
| Bank account proof (new account) | Yes - cancelled cheque or account statement | Not applicable | Not applicable |
| RBI authorisation / licence of the platform | Not applicable | Required (aggregator's RBI registration) | Required (platform's authorisation) |
| Platform onboarding confirmation / agreement | Not applicable | Recommended | Recommended |
| Virtual account details (account number, currency, routing) | Not applicable | Required | Required |
| Export/freelance income declaration | Recommended | Recommended | Recommended |
Skydo is an RBI-authorised payment aggregator. When you add Skydo as a new channel, you can provide Skydo's RBI authorisation details and the virtual account details (USD, EUR, GBP, SGD, AUD, CAD) issued at onboarding.
A brief cover letter or email ties all the documents together and gives the bank a clear reference point.
What Happens If You Don't Inform Your AD Bank About a New Receiving Channel?
If you don't inform your AD bank, the first payment that arrives via the undeclared channel may be flagged as an unregistered inward remittance, because the bank sees funds arriving under unfamiliar account details and has no record of the channel. A flagged payment can be put on hold pending clarification, which delays your settlement and disrupts your cash flow.
- FIRC delays: FIRC (Foreign Inward Remittance Certificate) issuance depends on the bank being able to match the inward remittance to your account and purpose. An unregistered channel creates a documentation gap that can delay or complicate FIRC issuance.
- Export compliance consequences: For exporters of goods, FIRC and Bank Realisation Certificate (BRC) are required to close EDPMS entries and claim export benefits. Delays here have downstream compliance consequences.
- Compliance scrutiny: Repeated unregistered inward remittances can attract scrutiny from the bank's compliance team and, in serious cases, escalate to RBI reporting.
How Does Skydo Simplify AD Bank Compliance When You Add a New Receiving Channel?
Once your AD bank has the new channel on record, the practical questions start when money arrives. How do you get a FIRC for each payment, does the amount your bank reports match what you invoiced, and how long until the funds settle? Skydo is an RBI-authorised payment aggregator, so the documentation your AD bank needs (platform identity, authorisation status, account details) is clean and ready from day one.
- Auto-generated FIRC for every transaction: With traditional SWIFT transfers, you may need to follow up with your bank to get a FIRC. Skydo provides a free FIRC certificate for every inward remittance automatically, with no chasing and no RM calls.
- Free virtual accounts in six currencies: Skydo issues virtual accounts in USD, EUR, GBP, SGD, AUD, and CAD at no cost. When you notify your AD bank, you share these virtual account details once, and all future payments across currencies flow through the same declared channel.
- Predictable fees with no hidden deductions: Banks and platforms like PayPal can charge up to 8% in combined fees and forex markup. Skydo charges $19 under $2,000, $29 from $2,000–$10,000, and 0.3% over $10,000, so the amount your AD bank reports as received matches what you invoiced, with no unexplained shortfall. For context on what banks charge, see international bank transfer fees for freelancers.
- Settlement within 1 working day: Skydo guarantees predictable settlement timelines, so you are not waiting on unclear bank processing windows after a payment arrives.
- eBRC and EDPMS closure support: Skydo offers eBRC closure assistance. Link your DGFT account once and bulk-upload shipping bills to auto-map IRMs and generate eBRC in a click. EDPMS closure assistance is also available, which reduces the manual back-and-forth with your AD bank.
- Quick setup: Onboarding takes 10–15 minutes, there are no monthly fees, and you pay only when you transact.
Do I need to inform my AD bank every time I receive a payment from a new foreign client?
No. You only notify your AD bank about a new receiving channel, which is the route through which payment arrives. Individual clients and invoices don't need separate notification. Once the channel is registered, payments arriving through it are processed normally without repeat notification.
Is a payment aggregator like Skydo treated as an AD bank itself?
How long does it take for an AD bank to acknowledge a new receiving channel?
What is a FIRC and why does a freelancer in India need one?
Can I have more than one AD bank at the same time?
What details does my AD bank need about a virtual account issued by a payment aggregator?
Does informing my AD bank about a new channel affect my existing SWIFT payments?
Is written notification to my AD bank a legal requirement under FEMA?
