PayPal or Wise: What RBI's FIRC Rules Mean for Getting Paid by a French Client
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
- Published:
- Last modified:
Short answer
In 2026 a French client can pay an Indian exporter through PayPal or Wise. Each payment is an export of services under the RBI's FEMA Regulations 2026. You file an EDF and realise payment within nine months. Your AD bank reports a purpose code. A FIRC or FIRA records the credit. GST is zero-rated under an LUT.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Indian freelancers, agencies and companies that export services to clients in France and are paid in EUR or another currency through PayPal, Wise or a bank. | FEMA Export and Import Regulations 2026, FEMA Manner of Receipt and Payment Regulations 2023, IGST Act s.2(6) and s.16, CGST Rule 96A and Rule 89(2)(c), FETERS purpose codes | Skydo, Razorpay, Wise Business, PayPal | 6 Oct 2026 |
How do PayPal and Wise compare for Indian exporters paid by French clients?
Platforms named in the question are shown alongside the 2 highest payouts among the platforms this site covers, ranked by the INR received on a $5,000 invoice. Fees were checked on 30 Sept 2026.
| Platform | Best for | Fee | FX markup | Settlement | FIRA | RBI PA-CB status | INR on $5,000 | Source |
|---|---|---|---|---|---|---|---|---|
| Skydo | Indian freelancers and exporters receiving mid to large B2B invoices | $19 up to $2,000, $29 to $10,000, 0.3% above + GST | States zero FX margin at live rate | States under 24 hours; FAQ timelines vary by rail | States instant, free FIRA per payment | RBI authorised PA-CB Inward and Outward; on RBI list | ₹4,70,314 | Skydo pricing (checked 6 Oct 2026) |
| Razorpay | Indian businesses and freelancers on Razorpay invoicing foreign clients | 1% per bank transfer (Rs 1,000 flat below Rs 1,00,000) + GST | States 0% markup on MoneySaver at live rate | States 1 day (T+1 after invoice shared) | FIRS within 24 hours of settlement; no charge listed | RBI authorised PA-CB inward and outward, plus PA-O | ₹4,67,968 | Razorpay pricing (checked 6 Oct 2026) |
| Wise Business | Freelancers and small exporters wanting multi-currency local accounts and eFIRC | Calculator: 1.6% + $2 per payment + 18% GST | Mid-market rate; cost is the 1.6% conversion fee | States under 90 minutes in business hours | eFIRC per transfer, 2 USD + 18% GST | States in-principle PA-CB approval; not found on RBI page | ₹4,64,563 | Wise Business pricing (checked 6 Oct 2026) |
| PayPal | Card and PayPal-wallet payments from overseas PayPal buyers | 4.40% + USD 0.30 per international payment; fixed fee varies | 3.0% above PayPal's base rate on conversion | Not confirmed | Free weekly FIRA; custom Rs 100 + 18% GST each | PA-CB in-principle authorisation granted; final not confirmed | ₹4,35,354 | PayPal pricing (checked 6 Oct 2026) |
Which RBI rule governs money from France?
Money from a French client for services is governed by the FEMA (Export and Import of Goods and Services) Regulations, 2026, in force from 1 October 2026, and by the FEMA (Manner of Receipt and Payment) Regulations, 2023. France is outside the Asian Clearing Union, so payment may be received in Indian Rupees or any foreign currency, including EUR, through an authorised bank or authorised person. The 2026 Regulations do not name the FIRC; it is a bank record that GST refund rules rely on.
| Rule | Source | Clause | Plain meaning | Best for |
|---|---|---|---|---|
| Currency and channel | FEMA Manner of Receipt and Payment Regulations 2023 | Reg 3(2)(I)(a)(iii) | From countries outside the ACU, such as France, receipts can be in INR or any foreign currency, routed through an authorised bank or authorised person. | Exporters invoicing a French client in EUR |
| Export Declaration Form | FEMA Regulations 2026 | Reg 3(2) | File an EDF for the full export value within 30 days from the end of the invoice month. One EDF can cover a month's exports, and non-software services may file it on or before the payment date. | Every service exporter, including software exporters |
| Realisation period | FEMA Regulations 2026 | Reg 5(1) | Realise and repatriate the full value within nine months from the invoice date, or twelve months if invoiced or settled in INR. The AD bank may extend the period. | French clients on long payment terms |
| EDPMS closure | FEMA Regulations 2026 | Reg 4(2) | For invoices up to ₹10 lakh, the EDPMS entry can be closed on the exporter's declaration, also in bulk each quarter. | Freelancers with smaller invoices |
| Purpose code reporting | FEMA Regulations 2026; A.P. (DIR Series) Circular No. 84 | Reg 18(2); FETERS purpose code list | The AD bank reports each foreign trade transaction in FETERS, using a purpose code that describes the receipt. | Choosing the code with your bank |
| FIRC for GST refunds | CGST Rule 89 | Rule 89(2)(c) | A refund claim on export of services needs a statement of invoices with the relevant Bank Realisation Certificates or Foreign Inward Remittance Certificates. | Exporters claiming unused input tax credit |
Which option leaves the most rupees when a French client pays $500, $2,000 or $5,000?
Each row applies the platform's published fee, FX markup and 18% GST on the fee to the XE mid-market rate for 3 Nov 2026. Platforms without full published pricing are not included.
| Platform and invoice | Fee | FX markup | GST | INR received | Cost | Best for |
|---|---|---|---|---|---|---|
| Skydo, $500 | ₹1,800 | ₹0 | ₹324 | ₹45,232 | 4.48% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $2,000 | ₹1,800 | ₹0 | ₹324 | ₹1,87,299 | 1.12% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $5,000 | ₹2,747 | ₹0 | ₹494 | ₹4,70,314 | 0.68% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Razorpay, $500 | ₹1,000 | ₹0 | ₹180 | ₹46,176 | 2.49% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $2,000 | ₹1,894 | ₹0 | ₹341 | ₹1,87,187 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $5,000 | ₹4,736 | ₹0 | ₹852 | ₹4,67,968 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Wise Business, $500 | ₹929 | ₹0 | ₹167 | ₹46,259 | 2.32% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $2,000 | ₹3,160 | ₹0 | ₹569 | ₹1,85,694 | 1.97% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $5,000 | ₹7,620 | ₹0 | ₹1,372 | ₹4,64,563 | 1.90% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| PayPal, $500 | ₹2,112 | ₹1,357 | ₹380 | ₹43,506 | 8.13% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $2,000 | ₹8,363 | ₹5,432 | ₹1,505 | ₹1,74,122 | 8.08% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $5,000 | ₹20,865 | ₹13,581 | ₹3,756 | ₹4,35,354 | 8.07% | Card and PayPal-wallet payments from overseas PayPal buyers |
For example, on a $2,000 invoice Skydo pays about ₹1,87,299 and PayPal about ₹1,74,122 at today's reference rate, a difference of ₹13,177.
What documents and GST apply to France payments?
A payment from France needs an export invoice, an EDF, a bank inward remittance record such as a FIRC or FIRA and, for GST, an LUT or IGST payment. Services to a client in France are an export of services when the place of supply is outside India and payment comes in convertible foreign exchange, or in INR where the RBI permits. Export of services is a zero-rated supply, and an LUT in FORM GST RFD-11 lets you supply without paying IGST.
| Document | Who issues it | When needed | Best for |
|---|---|---|---|
| Export invoice | You, the exporter | For every supply; its date starts the EDF and realisation clocks | All exporters |
| EDF | You file it with the AD bank, or STPI for software (Reg 2(1)(f)) | Within 30 days from the end of the invoice month (Reg 3(2)) | Service and software exporters |
| FIRC or FIRA | The bank that credits the rupees in India | After each credit; Rule 89(2)(c) names BRCs or FIRCs for export of services refund claims | GST records and refund claims |
| e-BRC | DGFT, generated by the exporter with an IEC from the bank's inward remittance message | After payment is received | Exporters who need DGFT confirmation that payment was received |
| LUT (FORM GST RFD-11) | You file it with the jurisdictional Commissioner (CGST Rule 96A) | Before export, to supply without paying IGST | GST-registered exporters |
What changed in the rules this year?
The main change in 2026 is that the FEMA Export and Import Regulations 2026 replaced the 2015 regulations from 1 October 2026. A.P. (DIR Series) Circular No. 20 supersedes the Master Direction on Export of Goods and Services and the listed circulars, including the SOFTEX circulars, from the same date.
- New regulations: The 2026 Regulations came into force on 1 October 2026 and were amended on 22 September 2026.
- SOFTEX: The SOFTEX circulars are listed as superseded in Circular No. 20, and software exports now use the EDF.
- Realisation: The 22 September 2026 amendment set nine months, replacing fifteen, and twelve months for INR invoices, replacing eighteen (Reg 5).
- Small invoices: Invoices up to ₹10 lakh can close in EDPMS on the exporter's declaration (Reg 4(2)).
- Unrealised exports: Exports unrealised one year past the due date limit further exports to full advance or an irrevocable letter of credit (Reg 13).
How did we verify this?
Every rule is linked to its official source below with the date it was checked. Platform figures come from each platform's own pages; the full method is on the methodology page.
- Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (Notification FEMA 23(R)/2026-RB, amended up to 22 September 2026), Reg 2(1)(f), 3(2), 4(2), 5(1), 13, 18(2) (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20 dated 16 January 2026: Export and Import of Goods and Services, Paras 4 and 7; Annex A (checked 6 Oct 2026)
- Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023, Reg 3(2)(I)(a)(iii) (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84 dated 29 February 2012: Compilation of R-Returns, Reporting under FETERS, Purpose codes for reporting (checked 6 Oct 2026)
- IGST Act, 2017, Section 2 (Definitions), s.2(6) export of services (checked 6 Oct 2026)
- IGST Act, 2017, Section 16 (Zero rated supply), s.16(1) and 16(3) (checked 6 Oct 2026)
- CGST Rules, 2017, Rule 96A (Export under bond or Letter of Undertaking), Rule 96A(1)(b) (checked 6 Oct 2026)
- CGST Rules, 2017, Rule 89 (Application for refund), Rule 89(2)(c) (checked 6 Oct 2026)
- European Central Bank: Single Euro Payments Area (SEPA), SEPA countries (checked 6 Oct 2026)
- DGFT FAQs on Self-Generation of eBRC (Version 1.0, March 2024), FAQ 1 and 10 (checked 6 Oct 2026)
- Skydo homepage (pricing and fee calculator), Know what you pay; calculator showing GST 18% of transaction fee (checked 6 Oct 2026)
- Razorpay MoneySaver Export Account (International Bank Transfers) pricing, Standard Plan: 0% FX markup, 1% fee, FlashLinks 2%, GST applicable, flat fee of INR 1,000 on transactions below INR 1,00,000, setup and AMC INR 0 (checked 6 Oct 2026)
- Wise India: Fees for receiving money (Business), Conversion fee depends on the currency; eFIRC for every transfer; GST 18% of (conversion fee + eFIRC fee); calculator (checked 6 Oct 2026)
- PayPal India Merchant Fees, Receiving international transactions; Currency Conversions (3.0% converting balance and payments received; 4.00% all other cases); Withdrawals Out of PayPal; Dispute Fees; Other Fees (Last Updated 28 March 2024) (checked 6 Oct 2026)
Frequently asked questions
Does the RBI require a FIRC for every EUR payment from a French client?
The FEMA Regulations 2026 do not name the FIRC as a required document. The rules require an EDF, realisation within nine months and purpose code reporting by your AD bank. A FIRC or FIRA still matters for GST, since Rule 89(2)(c) asks for BRCs or FIRCs when you claim an export of services refund.
Is a FIRC the same as an e-BRC for France export of services payments?
No. A FIRC or FIRA is issued by the bank that credits the money in India. An e-BRC is issued by DGFT as confirmation that the exporter received payment, and the exporter generates it with an IEC from the bank's inward remittance message. See FIRC vs FIRA vs e-BRC for a side-by-side view.
Which RBI purpose code goes with a EUR inward remittance from a French client?
The purpose code comes from the RBI's FETERS purpose code list and must match the service you invoiced, such as software, consultancy or design. Your AD bank reports it with the inward remittance. Check our purpose codes list and confirm the code with your bank before the payment is credited.
Can a French client pay by SEPA transfer directly into an Indian bank account?
No. France is one of the 41 SEPA countries, and India is not. A euro payment to an Indian bank account therefore falls outside the SEPA scheme. A SEPA payment works only into a euro account held in a SEPA country, and the money that reaches India still follows FEMA export rules.
Does an export of services invoice to France attract IGST if an LUT is filed?
No IGST is paid when you supply under an LUT in FORM GST RFD-11. If payment is not received within one year or the FEMA period, whichever is later, you must pay the tax with interest within fifteen days after that period ends. See our LUT filing guide for the portal steps.
How long can a French client invoice stay unpaid under the RBI export realisation rule?
Under Reg 5 of the FEMA Regulations 2026, you must realise the full export value within nine months from the invoice date, or twelve months if invoiced or settled in INR. Your AD bank may extend the period if you give reasons. Use the export realisation period guide for details.
Do PayPal and Wise receipts from France follow the same RBI export rules as a bank transfer?
Yes. The FEMA Regulations 2026 apply to the export itself, whichever channel the French client uses. The money must reach you through an authorised bank or authorised person under the Manner of Receipt and Payment Regulations. The comparison table on this page shows each provider's verified data, including the remittance document.