PayPal, Wise or Payoneer: What RBI's FIRC Rules Actually Mean for Receiving International Payments
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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Short answer
RBI's 2026 FEMA rules do not name a FIRC for international payments received through PayPal, Wise or Payoneer. The FEMA Export and Import Regulations 2026 rely on bank EDPMS closure and purpose code reporting. The FIRC matters for GST, because CGST Rule 89 asks for FIRC or BRC details on export refunds. An LUT allows export without paying IGST.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Indian residents (freelancers, sole proprietors, firms and companies) who receive export proceeds for services from clients abroad through PayPal, Wise, Payoneer, another payment gateway 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, FETERS purpose codes, IGST Act s.2(6) and s.16, CGST Rule 89 and Rule 96A, DGFT eBRC guidelines. | Skydo, Razorpay, Wise Business, PayPal, Payoneer | 6 Oct 2026 |
How do PayPal, Wise and Payoneer compare for Indian freelancers and exporters receiving international 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 | ₹4,71,037 | 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 | ₹4,68,686 | 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 | ₹4,65,277 | 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 | ₹4,36,023 | 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) | ₹4,49,905 to ₹4,69,540 (estimate) | Payoneer pricing (checked 6 Oct 2026) |
Which RBI rule governs international payments received in India as export proceeds?
Two RBI regulations govern international payments received in India as export proceeds. The FEMA (Manner of Receipt and Payment) Regulations 2023 require the money to come through an Authorised Bank or Authorised Person. From 1 October 2026 the FEMA Export and Import Regulations 2026 set the EDF, EDPMS, realisation and FETERS reporting rules. A payment gateway that works as a cross-border payment aggregator also follows the RBI Master Direction on Payment Aggregators. None of these texts uses the term FIRC.
| Rule | Source | Clause | Plain meaning | Best for |
|---|---|---|---|---|
| Authorised channel | Manner of Receipt and Payment Regulations 2023 | Reg 3(2) | Receipts from a person outside India come 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 Asian Clearing Union 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 full export value within 30 days from the end of the invoice month. One EDF can cover all exports made in a month. | Service exporters with several clients a month |
| EDPMS closure | FEMA Export and Import Regulations 2026 | Reg 4(2) | Entries for invoices up to ₹10 lakh may be closed on the exporter's declaration that payment was realised. | Freelancers with smaller invoices |
| Realisation period | FEMA Export and Import Regulations 2026, as amended by FEMA 23(R)/(1)/2026-RB | Reg 5(1) | Payment for services is due within nine months of the invoice date, or twelve months if invoiced or settled in INR. | Anyone with slow-paying clients |
| Purpose code reporting | FEMA Export and Import Regulations 2026 and A.P. (DIR Series) Circular No. 84 | Reg 18(2); Circular 84 para 3 | The AD bank reports foreign trade transactions in FETERS, and Circular 84 tells banks to report all foreign exchange transactions under RBI's purpose code list. | Understanding why the bank asks for a purpose code |
| Payment aggregator cap | RBI Master Direction on Payment Aggregators | Para 11(d) and 11(h) | A cross-border payment aggregator handles up to ₹25 lakh per transaction and gives the exporter's AD bank the documents for EDPMS closure. | Exporters paid through a payment gateway |
| FIRC for GST refund | CGST Rule 89 | Rule 89(2)(c) | A refund claim on export of services lists 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 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 | ₹1,802 | ₹0 | ₹324 | ₹45,302 | 4.48% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $2,000 | ₹1,802 | ₹0 | ₹324 | ₹1,87,587 | 1.12% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $5,000 | ₹2,751 | ₹0 | ₹495 | ₹4,71,037 | 0.68% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Razorpay, $500 | ₹1,000 | ₹0 | ₹180 | ₹46,248 | 2.49% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $2,000 | ₹1,897 | ₹0 | ₹341 | ₹1,87,475 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $5,000 | ₹4,743 | ₹0 | ₹854 | ₹4,68,686 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Wise Business, $500 | ₹931 | ₹0 | ₹167 | ₹46,330 | 2.32% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $2,000 | ₹3,164 | ₹0 | ₹570 | ₹1,85,979 | 1.97% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $5,000 | ₹7,632 | ₹0 | ₹1,374 | ₹4,65,277 | 1.90% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| PayPal, $500 | ₹2,115 | ₹1,359 | ₹381 | ₹43,573 | 8.13% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $2,000 | ₹8,376 | ₹5,440 | ₹1,508 | ₹1,74,390 | 8.08% | Card and PayPal-wallet payments from overseas PayPal buyers |
| PayPal, $5,000 | ₹20,897 | ₹13,602 | ₹3,761 | ₹4,36,023 | 8.07% | Card and PayPal-wallet payments from overseas PayPal buyers |
For example, on a $2,000 invoice Skydo pays about ₹1,87,587 and PayPal about ₹1,74,390 at today's reference rate, a difference of ₹13,197.
What documents and GST apply to international payments received in India?
An international payment for services involves an export invoice, an EDF and a bank record of the inward remittance, which may be a FIRC or an e-FIRC. A GST-registered exporter also files an LUT to export without paying IGST. The service counts as an export of services only when all five conditions in IGST Act s.2(6) are met, 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 realisation period under Reg 5(1) | Every foreign assignment or retainer |
| Export Declaration Form (EDF) | You declare it to the specified authority, such as your AD bank | Within 30 days from the end of the invoice month. Non-software service exporters may also submit it on or before the date of payment (Reg 3(2)) | All service and software exporters |
| FIRC or e-FIRC | Your AD bank, where it issues one. Ask your bank which inward remittance record it provides | After the money is credited. CGST Rule 89(2)(c) asks for BRC or FIRC details on refund claims for export of services | GST refund claims and proof of foreign receipt |
| e-BRC | DGFT. You self-generate it on the DGFT portal from your bank's inward remittance message (IRM). The DGFT eBRC FAQs say this also works for payments received through PayPal, Wise or other platforms once the bank reports the IRM | 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. It is valid for the whole financial year in which it is filed (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 receipts routed through a payment gateway (PA Master Direction para 11(h)) | Exporters paid through a payment gateway |
What changed in the rules this year?
The biggest change is that the FEMA Export and Import Regulations 2026 took effect on 1 October 2026 and replaced the old Master Direction on Export. A separate RBI circular asks banks to credit inward payments faster from six months after 9 April 2026. The Income-tax Act, 2025 applies from 1 April 2026.
- New regulations: A.P. (DIR Series) Circular No. 20 supersedes the Master Directions on Export and Import of Goods and Services and the circulars in its annex, including the SOFTEX circulars, from 1 October 2026. Software exports now use the EDF.
- Realisation: The 22 September 2026 amendment, in force from 1 October 2026, replaced fifteen months with nine months, and eighteen months with twelve months for INR invoices.
- EDPMS closure: The ₹10 lakh declaration route for closing EDPMS entries, earlier a special procedure in para C.31 of the Master Direction on Export, now sits in Reg 4(2).
- Faster credit: The RBI circular of 9 April 2026 asks banks to tell customers about inward payments on receipt and to try to credit those received in forex market hours the same business day. It applies six months after the circular date.
- Income tax: The Income-tax Act, 2025 repealed the 1961 Act on 1 April 2026. The repeal does not disturb matters for tax years before that date.
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 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), Para 4 and Annex: supersession 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, Amendment to regulation 5(1) (checked 6 Oct 2026)
- RBI Master Direction: Export of Goods and Services (FED Master Direction No. 16/2015-16, updated as on 17 July 2026), superseded from 1 October 2026, Para C.31, EDPMS special procedure for entries up to ₹10 lakh (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), 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)
- 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)
- 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 16: Zero rated supply (CBIC tax information portal), Section 16(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)
- Central Goods and Services Tax Rules, 2017, Rule 96A: Export without payment of integrated tax (CBIC tax information portal), Rule 96A(1)(b) (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, 3 and 10 (checked 6 Oct 2026)
- DGFT FAQs on Self-Generation of eBRC, Version 1.0, Q1, Q2, Q21 and Q82 (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 (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
Can Indian exporters receive international payments through payment gateways like PayPal, Wise or Payoneer under RBI rules in 2026?
Yes, provided the money reaches India through an Authorised Bank or Authorised Person, as Regulation 3(2) of the Manner of Receipt and Payment Regulations 2023 requires. A gateway acting as a cross-border payment aggregator must also follow the RBI Payment Aggregator Master Direction. See is it legal to receive payments through Wise, Payoneer or PayPal.
What is a FIRC, and does RBI require one for every inward remittance of export proceeds?
A FIRC (foreign inward remittance certificate) is a bank's record that foreign money was credited to your account. The FEMA Export and Import Regulations 2026 do not name the FIRC and rely on EDPMS closure instead. GST still refers to it, because CGST Rule 89(2)(c) asks for FIRC or BRC details on refunds. See what is a FIRC.
Is an e-BRC from DGFT the same as an e-FIRC from a bank for export proceeds?
No. The DGFT eBRC FAQs state that e-FIRC and eBRC are different systems. A bank issues the e-FIRC, while you self-generate the eBRC on the DGFT portal using the inward remittance message (IRM) your bank sends. You cannot generate an eBRC for purpose codes P0101 and P0108 under the DGFT eBRC guidelines. See FIRC vs FIRA vs e-BRC.
Which RBI purpose code applies to export proceeds for IT services received in India?
Banks report every receipt under RBI's purpose code list in FETERS, as set out in A.P. (DIR Series) Circular No. 84. The DGFT eBRC guidelines accept only P0802, P0803, P0807 and P0103 for IT services, where P0103 covers advance payments. Confirm the exact code with your AD bank. See purpose code for freelancers.
What is the RBI limit on export proceeds received through a cross-border payment aggregator (PA-CB)?
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. Paragraph 11(h) requires the PA-CB to give your AD bank the documents needed to close your EDPMS entry. An invoice above that cap cannot pass through a PA-CB as one transaction. See RBI PA-CB guidelines.
What happens to GST under an LUT if international payments for exported services arrive late?
Under CGST Rule 96A(1)(b), the LUT binds you to pay the tax with interest if payment is not received within fifteen days after one year from the invoice date, or after the FEMA period with any RBI extension, whichever is later. The Commissioner can allow more time. See what is an LUT.
Do freelancers need a separate EDF for each inward remittance under the FEMA Regulations 2026?
No. Under Regulation 3(2) of the FEMA Export and Import Regulations 2026, a service exporter may file a single EDF for all exports to one or more clients in a month. It is due within 30 days from the end of the invoice month. Non-software exporters may file on or before the payment date. See EDF form for exports.
How fast should Indian banks credit inward remittances of export proceeds from October 2026?
The RBI circular of 9 April 2026 tells banks to inform customers of an inward payment as soon as the message arrives. Banks should try to credit payments received during forex market hours the same business day. The directions apply six months after the circular date. See fastest way to receive international payments.