PayPal, Wise or Payoneer: What RBI's FIRC Rules Mean for Receiving Foreign Payments in India
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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Short answer
Foreign payments received in India through PayPal, Wise or Payoneer in 2026 follow RBI and FEMA rules. The FEMA Export and Import Regulations 2026 require payment for services within nine months. Banks report each receipt with a purpose code. A FIRC supports GST refund claims under CGST Rule 89. An LUT allows export without paying IGST.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Indian residents (freelancers, sole proprietors, firms and companies) who export services to clients abroad and are paid in foreign currency or INR through PayPal, Wise, Payoneer or a direct bank transfer. | FEMA (Export and Import of Goods and Services) Regulations 2026, FEMA (Manner of Receipt and Payment) Regulations 2023, RBI Master Direction on Payment Aggregators, IGST Act s.2(6), s.13(2) and s.16, CGST Rule 89 and Rule 96A. | Skydo, Razorpay, Wise Business, PayPal, Payoneer | 6 Oct 2026 |
How do PayPal, Wise and Payoneer compare for Indian freelancers and exporters receiving foreign payments?
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 | ₹4,69,754 | 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 | ₹4,67,410 | 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 | ₹4,64,010 | 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 | ₹4,34,836 | PayPal pricing (checked 6 Oct 2026) |
| Payoneer | Freelancers and sellers paid via marketplaces or Payoneer clients | Conflicting receiving fee: free, fixed or 1%; 3% INR withdrawal | Conflicting: 3% (fee notice) or 1-4% (pricing page) | Conflicting: auto-withdrawn within 24 or 48 hours | Free digital FIRA downloads; within 72 hours per guide | States in-principle PA-CB; not on RBI list (30 Sep 2026) | ₹4,48,680 to ₹4,68,262 (estimate) | Payoneer pricing (checked 6 Oct 2026) |
Which RBI rules govern foreign currency payments received in India for exported services?
The FEMA (Manner of Receipt and Payment) Regulations 2023 require receipts from abroad to come through an Authorised Bank or Authorised Person, and clients outside the Asian Clearing Union may pay in Indian rupees or any foreign currency. From 1 October 2026 the FEMA Export and Import Regulations 2026 set the EDF, EDPMS and realisation rules, and A.P. (DIR Series) Circular No. 20 supersedes the Master Direction on Export. Money routed through a cross-border payment aggregator also falls under the RBI Master Direction on Payment Aggregators. None of these 2026 FEMA texts names the FIRC; the FIRC requirement comes from GST Rule 89.
| Rule | Source | Clause | Plain meaning | Best for |
|---|---|---|---|---|
| Authorised channel | Manner of Receipt and Payment Regulations 2023 | Reg 3(2) | Payments between a person in India and a person outside India go through an Authorised Bank or Authorised Person. | Checking whether a payment route is permitted |
| Currency of receipt | Manner of Receipt and Payment Regulations 2023 | Reg 3(2)(I)(a)(iii) | A client in a country outside the ACU may pay in Indian rupees or any foreign currency. | Choosing the invoice currency |
| Export declaration (EDF) | FEMA Export and Import Regulations 2026 | Reg 3(2) | Declare the export value in an EDF within 30 days from the end of the month the invoice was raised. | Service exporters invoicing every month |
| Bank credit and EDPMS | FEMA Export and Import Regulations 2026 | Reg 4(2) | The AD bank closes the EDPMS entry once payment is realised. Invoices up to ₹10 lakh can be closed on the exporter's declaration. | Freelancers with smaller invoices |
| Realisation period | FEMA Export and Import Regulations 2026 | Reg 5(1), as amended | Services must be paid within nine months of the invoice date, or twelve months if invoiced or settled in INR. The AD bank may extend this. | Anyone with slow-paying clients |
| Reporting and purpose codes | FEMA Export and Import Regulations 2026 | Reg 18(2) | The AD bank reports all foreign trade transactions in FETERS, which uses RBI purpose codes. | Understanding why a purpose code is asked for |
| Payment aggregator limits | RBI Master Direction on Payment Aggregators | Para 11(d) and 11(h) | A cross-border payment aggregator can process up to ₹25 lakh per transaction and must give the exporter's AD bank the documents needed to close EDPMS entries. | Exporters paid through an aggregator |
| 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 matching BRC or FIRC. | GST-registered exporters claiming refunds |
Which of PayPal, Wise and Payoneer costs least on $500, $2,000 and $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 4 Nov 2026. Platforms without full published pricing are not included.
| Platform and invoice | Fee | FX markup | GST | INR received | Cost | Best for |
|---|---|---|---|---|---|---|
| Skydo, $500 | ₹1,797 | ₹0 | ₹324 | ₹45,178 | 4.48% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $2,000 | ₹1,797 | ₹0 | ₹324 | ₹1,87,076 | 1.12% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $5,000 | ₹2,743 | ₹0 | ₹494 | ₹4,69,754 | 0.68% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Razorpay, $500 | ₹1,000 | ₹0 | ₹180 | ₹46,119 | 2.49% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $2,000 | ₹1,892 | ₹0 | ₹341 | ₹1,86,964 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $5,000 | ₹4,730 | ₹0 | ₹851 | ₹4,67,410 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Wise Business, $500 | ₹928 | ₹0 | ₹167 | ₹46,204 | 2.32% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $2,000 | ₹3,156 | ₹0 | ₹568 | ₹1,85,473 | 1.97% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $5,000 | ₹7,611 | ₹0 | ₹1,370 | ₹4,64,010 | 1.90% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| PayPal, $500 | ₹2,110 | ₹1,356 | ₹380 | ₹43,454 | 8.13% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $2,000 | ₹8,353 | ₹5,425 | ₹1,504 | ₹1,73,915 | 8.08% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $5,000 | ₹20,840 | ₹13,565 | ₹3,751 | ₹4,34,836 | 8.07% | Card and PayPal-wallet payments from overseas PayPal buyers |
For example, on a $2,000 invoice Skydo pays about ₹1,87,076 and PayPal about ₹1,73,915 at today's reference rate, a difference of ₹13,161.
What documents and GST apply to foreign payments received in India?
Each foreign payment involves an export invoice and an EDF entry, and a FIRC or bank inward remittance record serves as proof of receipt. An LUT applies if you are GST-registered and export without paying IGST. Services count as an export of services when the five conditions in IGST Act s.2(6) are met, including payment in convertible foreign exchange or in INR where RBI permits. For most services the place of supply is the recipient's location under IGST s.13(2), and an export of services is a zero-rated supply under IGST s.16.
| Document | Who issues it | When needed | Best for |
|---|---|---|---|
| Export invoice | You, the exporter | When you bill the client; the invoice date starts the nine-month realisation clock under Reg 5(1) | Every foreign assignment or retainer |
| Export Declaration Form (EDF) | You declare it to the specified authority: an AD bank for services, or an AD bank or STPI for software (Reg 2(1)(f)) | Within 30 days from the end of the invoice month (Reg 3(2)). For services other than software, the EDF may instead be submitted on or before the date payment is received | All service and software exporters |
| FIRC (foreign inward remittance certificate) | Your AD bank, where it issues one. The 2026 RBI regulations do not name the FIRC, so ask your bank what record it provides | After the money is credited. CGST Rule 89(2)(c) asks for BRC or FIRC details when claiming a refund on export of services | GST refund claims and proof of foreign receipt |
| eBRC | DGFT; you self-generate it on the DGFT portal from your bank's inward remittance message (IRM) (DGFT eBRC FAQs) | After payment is received. IRMs can be clubbed only if they share the same currency and bank account (DGFT eBRC guidelines) | Exporters who need a DGFT record of realisation |
| Letter of Undertaking (Form GST RFD-11) | You file it on the GST portal | Before export; valid for the whole financial year it is filed in (Circular 8/8/2017-GST) | GST-registered exporters supplying without paying IGST |
| Payment aggregator transaction records | The cross-border payment aggregator, sent to your AD bank | For EDPMS closure of aggregator-routed receipts (PA Master Direction para 11(h)) | Exporters paid through an aggregator |
What changed in the rules this year?
The main change is that the FEMA Export and Import Regulations 2026 replaced the 2015 regulations on 1 October 2026. RBI also asked banks to credit inward cross-border payments faster from October 2026, and the Income-tax Act, 2025 took effect on 1 April 2026.
- New regulations: From 1 October 2026, Circular No. 20 supersedes the Master Directions on Export and Import of Goods and Services and the circulars listed in its annex, including the SOFTEX circulars. Software exports are now declared in the EDF.
- Realisation: A 22 September 2026 amendment set the period at nine months, or twelve months for INR invoices, replacing the fifteen and eighteen months in the January text before it took effect.
- EDPMS closure: Invoices up to ₹10 lakh can be closed in EDPMS on the exporter's declaration (Reg 4(2)).
- Faster credit: An RBI circular of 9 April 2026 asks banks to tell customers about inward payments on receipt and to aim to credit those received in forex market hours the same business day. The directions take effect six months from the circular date, which is 9 October 2026.
- Income tax: The Income-tax Act, 2025 repealed the 1961 Act from 1 April 2026 and uses the term 'tax year'. Earlier years stay under the old Act.
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 No. FEMA 23(R)/2026-RB, Regulations 2(1)(f), 3(2), 4(2), 5(1) and 18(2) (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20, RBI/2025-26/194: Export and Import of Goods and Services (16 January 2026), Supersession of Master Directions and annexed circulars from 1 October 2026 (checked 6 Oct 2026)
- Foreign Exchange Management (Export and Import of Goods and Services) (Amendment) Regulations, 2026, Notification No. FEMA 23(R)/(1)/2026-RB (22 September 2026), Amendment to regulation 5 (checked 6 Oct 2026)
- Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023, Notification No. FEMA 14(R)/2023-RB, Regulation 3(2) and 3(2)(I)(a)(iii) (checked 6 Oct 2026)
- RBI Master Direction on Regulation of Payment Aggregator (PA) (15 September 2025), Paragraph 11(d) and 11(h) (checked 6 Oct 2026)
- RBI circular RBI/2026-27/08: Guidelines to facilitate faster cross-border inward payments (9 April 2026), Paras 3 and 4 (checked 6 Oct 2026)
- Integrated Goods and Services Tax Act, 2017, section 2 (CBIC tax information portal), Section 2(6) (checked 6 Oct 2026)
- Integrated Goods and Services Tax Act, 2017, section 13 (CBIC tax information portal), Section 13(2) (checked 6 Oct 2026)
- Integrated Goods and Services Tax Act, 2017, section 16: Zero rated supply (CBIC tax information portal), Section 16(1) and 16(3) (checked 6 Oct 2026)
- Central Goods and Services Tax Rules, 2017, Rule 96A (CBIC tax information portal), Rule 96A(1) (checked 6 Oct 2026)
- Central Goods and Services Tax Rules, 2017, Rule 89: Application for refund (CBIC tax information portal), Rule 89(2)(c) (checked 6 Oct 2026)
- CBIC Circular No. 8/8/2017-GST: Clarification on furnishing of Bond/Letter of Undertaking (4 October 2017), Para 2(b), validity of LUT (checked 6 Oct 2026)
- GST Portal user guide: Furnishing of Letter of Undertaking (Form GST RFD-11), Filing steps (checked 6 Oct 2026)
- DGFT Self-Certified eBRC Generation Guidelines, Version 1.0 (10 November 2023), Rules 1, 2 and 10 (checked 6 Oct 2026)
- DGFT FAQs on Self-Generation of eBRC, Version 1.0 (March 2024), Q1 and Q2 (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84, RBI/2011-12/413: Compilation of R-Returns, reporting under FETERS (29 February 2012), Paragraph 3 (checked 6 Oct 2026)
- Income Tax Department: Objective and scope of the new Act (Income-tax Act, 2025), Repeal of the 1961 Act on 01.04.2026 and the tax year concept (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)
- Payoneer India home (checked 6 Oct 2026)
Frequently asked questions
Is it legal for Indian freelancers to receive international payments through PayPal, Wise or Payoneer under RBI FEMA rules in 2026?
FEMA allows foreign clients to pay Indian residents, and the money must reach you through an Authorised Bank or Authorised Person under Regulation 3(2) of the Manner of Receipt and Payment Regulations 2023. Check how each service routes money to India before relying on it. See is it legal to receive payments through Wise, Payoneer or PayPal.
Does RBI require a FIRC for every inward remittance received in India in 2026?
The FEMA Export and Import Regulations 2026 do not name the FIRC. They rely on EDPMS closure and FETERS reporting by your AD bank. The FIRC matters mainly for GST, because CGST Rule 89(2)(c) asks for BRC or FIRC details on refund claims. Read FIRC vs FIRA vs e-BRC.
How do Indian exporters get an eBRC for international payments received in 2026?
An eBRC is self-generated on the DGFT portal using the inward remittance message (IRM) your bank sends, as explained in the DGFT eBRC FAQs. Under the DGFT eBRC guidelines, IRMs can be clubbed only when they share the same currency and the same bank account. See e-BRC on DGFT.
Is GST charged on international payments received by Indian freelancers who file an LUT in 2026?
No IGST is paid on a qualifying export of services when you file an LUT in Form GST RFD-11 under Rule 96A. The supply must meet all five conditions of IGST s.2(6), including payment in convertible foreign exchange or INR where RBI permits. See LUT filing on the GST portal.
How long can a foreign client take to pay under the RBI export realisation rule in 2026?
Under Regulation 5(1) of the FEMA Export and Import Regulations 2026, as amended on 22 September 2026, services must be paid within nine months from the invoice date, or twelve months if invoiced or settled in INR. Your AD bank can extend the period. See export realisation period.
Which RBI purpose code do banks use for international payments received by freelancers in India?
Banks report every receipt under RBI's revised purpose code list in FETERS (A.P. (DIR Series) Circular No. 84). For IT services, DGFT's eBRC guidelines list only P0802, P0803, P0807 and P0103 as applicable. The right code depends on the service you sold, so confirm it with your AD bank. See purpose code for freelancers.
Is there an RBI limit on international payments received in India through a cross-border payment aggregator (PA-CB)?
Yes. Paragraph 11(d) of the RBI Master Direction on Payment Aggregators caps each inward or outward transaction processed by a PA-CB at ₹25 lakh. The aggregator must also share documents with your AD bank for EDPMS closure. An invoice above that amount cannot pass through a PA-CB as one transaction. See RBI PA-CB guidelines.
How is foreign income received through inward remittance taxed under the Income-tax Act 2025?
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026, so foreign client fees for tax years from 1 April 2026 are charged under the new Act. Income of years beginning before 1 April 2026 stays under the old Act. Check the matching provision in the 2025 Act before filing. See income tax on foreign income.