P0015 Purpose Code: Loans & overdrafts taken by ADs on their own account

Purpose code P0015 is used when an Authorised Dealer bank in India receives money it has borrowed from an overseas counterparty on its own account.

What is the P0015 purpose code?

Purpose code P0015 is used when an Authorised Dealer bank in India borrows from an overseas counterparty for its own balance sheet, whether as a loan or as an overdraft. It sits apart from the rest of the capital account codes because the borrower and the reporting entity are the same bank, with no customer involved anywhere in the transaction. The description carries its own reporting instruction: an amount credited to the bank's NOSTRO account is reported under this code even where it is never swapped into rupees. Under RBI FEMA guidelines, this inward payment is classified under Capital Account and reported accordingly.

When to use P0015 purpose code?

Use P0015 when an AD bank draws a loan or overdraft from an overseas bank for its own account. It is the correct RBI receipt code for the bank's own borrowing, as distinct from anything the bank receives or processes for a customer. The test is whose balance sheet the money lands on, not the size of the facility or the currency it is drawn in.

When to use a different code:

• Use P0012 when an Indian borrower other than the AD takes a loan from a non-resident with maturity above one year
• Use P0014 when the money is a credit into a non-resident's deposit account rather than the bank's own borrowing
• Use the matching S-code when money is going abroad rather than being received

Who typically uses P0015 purpose code

Authorised Dealer Category-I banks in India that borrow from overseas correspondents and counterparties to fund their own operations. This code does not apply to businesses, exporters, or individuals, since it exists specifically for the AD's own borrowing rather than for anything routed through the bank for a customer.

Examples of transactions covered under P0015 purpose code

• An overdraft drawn by an Indian AD bank on its overseas correspondent bank
• Loan proceeds credited to the AD bank's NOSTRO account held abroad
• Short-term interbank borrowing taken by an AD bank for its own funding needs
• Funds drawn by the bank under a credit line held with an overseas counterparty

When NOT to use P0015 purpose code

• An Indian borrower other than the AD is taking a loan from a non-resident (use P0012 for maturity above one year)
• The money is a credit into a non-resident's deposit account held with the bank (use P0014)
• The bank is processing an inflow for a customer rather than borrowing on its own account (use the code that matches the customer's transaction)
• Money is going abroad rather than being received (use the matching S-code)

Documents required for P0015 purpose code

To receive a payment under P0015, the following records support the transaction so it can be verified and reported correctly under FEMA.

How is a P0015 Purpose Code declared?

Declaring the code is pretty straightforward. Here's how the payment gets tagged and reported.

1. Arrange the facility: The AD bank agrees the loan or overdraft terms with its overseas counterparty.
2. Draw the funds: The money is credited to the bank's account, commonly its NOSTRO account held abroad.
3. Declare the purpose: The purpose of the inward remittance is stated on the applicable form.
4. Record the supporting documents: The facility agreement and account statement evidence the borrowing.
5. Report under FEMA: The receipt is reported under this code, including where the funds are not converted into rupees.

Common mistakes to avoid while using P0015 purpose code

A few common slips can hold up reporting or cause compliance issues. Here's what to watch for.

1. Skipping the report when funds stay in foreign currency: An amount credited to the NOSTRO account is reported under this code even where it is never swapped into rupees.
2. Mixing own-account borrowing with customer flows: Applying P0015 to money the bank is handling for a customer, when the code covers only what the bank borrows for itself.
3. Code and document mismatch: The code not matching what the facility agreement describes, which flags the transaction.
4. Incomplete documents: Missing the facility agreement or account statement, leaving the borrowing unsupported on review.
5. Missing verification records: Incomplete records on the counterparty hold up the reporting.
6. Using an inward code for an outward payment: Applying a receipt code to money going out instead of the matching outward code.

How Skydo helps you receive international business payments

P0015 covers capital account transactions, which Skydo does not process. If you also invoice foreign clients for goods or services, here is how Skydo helps you get paid.

1. Complete onboarding: Share PAN, Aadhaar, and Indian bank details. Setup is fully online.
2. Get virtual account details: Receive account details in USD, GBP, EUR and other currencies your clients pay in.
3. Your client pays like a local: They send a domestic transfer in their own country, no SWIFT and no wire fee on their end.
4. FIRA is generated automatically: Free e-FIRA on every payment, stored in your dashboard for GST and audits.
5. INR settles within 24 hours: Mid-market rate with a flat, visible fee, no FX markup.