Wise, Remitly or an Exchange House: What Actually Costs Least for UAE to India Transfers
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
- Published:
- Last modified:
Short answer
This 2026 page compares Wise, Remitly and UAE exchange houses for AED to INR. Exchange houses can pay out through RBI's Rupee Drawing Arrangement, which caps trade payments at Rs 15 lakh each. Client payments for services also follow the FEMA Regulations 2026, with an EDF and nine-month realisation, a purpose code and a FIRC or FIRA.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Indian freelancers, agencies and companies paid by clients in the UAE, and individuals in India receiving personal remittances from family working in the UAE. | RBI Master Direction on Rupee Drawing Arrangements with exchange houses, RBI Master Direction on MTSS, FEMA (Export and Import of Goods and Services) Regulations, 2026, FEMA Manner of Receipt and Payment Regulations, 2023, FETERS purpose codes, IGST Act s.2(6) and s.16, and CGST Rule 96A | Skydo, Razorpay, Wise Business, Remitly | 6 Oct 2026 |
How do Wise, Remitly and a UAE exchange house compare for transfers from the UAE to India?
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 | ₹4,69,568 | 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 | ₹4,67,224 | 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 | ₹4,63,826 | Wise Business pricing (checked 6 Oct 2026) |
| Remitly | Family and personal remittances from the US to India | Sender pays $3.99 below $1,000, $0 from $1,000; recipient charges not confirmed | Not published; may earn from rate difference | Promised time per transfer; specific timings not confirmed | Not confirmed; not stated on Remitly pages | Not confirmed; not shown as PA-CB authorised | Not for business: Remitly is for personal, family or household transfers | Remitly pricing (checked 6 Oct 2026) |
- A UAE exchange house: An exchange house in the UAE sends rupees to India through a vostro account it holds with an Indian AD Category-I bank under a Rupee Drawing Arrangement. RBI requires the Indian bank to confirm the exchange house holds a valid licence from its local monetary or supervisory authority, and trade payments through this route are capped at Rs 15 lakh per transaction.
Which RBI rule governs money received in India from the UAE?
The RBI rule depends on the channel and on what the payment is for. Money sent by a UAE exchange house is paid out under a Rupee Drawing Arrangement, which RBI designed mainly for personal remittances and which allows trade transactions up to Rs 15 lakh each. A client in the UAE paying an Indian freelancer for services is an export receipt under the FEMA (Export and Import of Goods and Services) Regulations, 2026, in force from 1 October 2026. For example, a designer billing a Dubai client AED 8,000 follows the export rules, while AED 1,500 sent by a relative for household costs is a personal transfer. See how to receive AED payments in India.
| Rule | Source | Clause | Plain meaning | Best for |
|---|---|---|---|---|
| Currency and channel | FEMA Manner of Receipt and Payment Regulations, 2023 | Reg 3(2)(I)(a)(iii) and 3(2)(II) | The UAE is not an ACU member, so receipts can be in INR or any foreign currency, including AED, routed through an authorised bank or authorised person. | Anyone checking that an AED receipt is permitted |
| Rupee Drawing Arrangement | RBI Master Direction on exchange house vostro accounts | Paras 1, 2 and 3(a) | Exchange houses in Gulf countries can hold rupee vostro accounts with Indian AD Category-I banks. These accounts carry inward remittances mainly on private account, and the remitter and beneficiary should be individuals barring a few exceptions. | Families receiving money through a UAE exchange house |
| Trade payments via exchange houses | RBI Master Direction on exchange house vostro accounts | Paras 3(a) and 4(b)(x) | Trade transactions through an exchange house are permitted up to Rs 15 lakh per transaction. Donations to charitable institutions cannot be routed this way, and no cash payout is allowed. | Small client payments sent through an exchange house |
| Personal remittances via MTSS | RBI Master Direction on MTSS | Para 3.4 | Money transfer service payouts are for personal remittances such as family maintenance. Each is capped at USD 2,500, one beneficiary can receive 30 a year, and trade related remittances are not allowed. | Families receiving cash-pickup style transfers |
| Export Declaration Form | FEMA Regulations, 2026 | Reg 3(2) | A services exporter files 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. | Freelancers and agencies invoicing UAE clients |
| Realisation period | FEMA Regulations, 2026 | Reg 5(1) | The full export value is realised within nine months from the invoice date, or twelve months if invoiced or settled in INR. The AD bank may extend the period. | UAE clients on long payment terms |
| Purpose code reporting | FEMA Regulations, 2026; FETERS purpose codes | Reg 18(2); receipt purpose code list | The AD bank reports each foreign trade transaction in FETERS with a purpose code that matches the service. Family maintenance sent by Indian non-residents uses P1301. | Choosing the right code with your bank |
Which option leaves the most rupees when AED 1,000, AED 5,000 or AED 20,000 is sent to India?
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 | ₹323 | ₹45,160 | 4.48% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $2,000 | ₹1,797 | ₹0 | ₹323 | ₹1,87,001 | 1.12% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $5,000 | ₹2,742 | ₹0 | ₹494 | ₹4,69,568 | 0.68% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Razorpay, $500 | ₹1,000 | ₹0 | ₹180 | ₹46,100 | 2.50% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $2,000 | ₹1,891 | ₹0 | ₹340 | ₹1,86,890 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $5,000 | ₹4,728 | ₹0 | ₹851 | ₹4,67,224 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Wise Business, $500 | ₹928 | ₹0 | ₹167 | ₹46,186 | 2.32% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $2,000 | ₹3,155 | ₹0 | ₹568 | ₹1,85,399 | 1.97% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $5,000 | ₹7,608 | ₹0 | ₹1,370 | ₹4,63,826 | 1.90% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
For example, on a $2,000 invoice Skydo pays about ₹1,87,001 and Wise Business about ₹1,85,399 at today's reference rate, a difference of ₹1,602.
What documents and GST apply to payments received in India from the UAE?
A services export paid from the UAE needs an LUT before invoicing, an EDF after invoicing, and a FIRC or FIRA once the money is credited. GST on the export is zero-rated under IGST section 16 when the conditions in section 2(6) are met, including payment in convertible foreign exchange or in Indian rupees wherever permitted by RBI. A personal remittance from family is not an export, so no EDF, LUT or invoice applies to it. Read FIRC vs FIRA vs e-BRC.
| Document | Who issues it | When needed | Best for |
|---|---|---|---|
| LUT in FORM GST RFD-11 | The exporter files it under CGST Rule 96A | Before export, so invoices to UAE clients go out without IGST | GST-registered exporters billing UAE clients |
| EDF (Export Declaration Form) | The exporter files it with the AD bank or other specified authority | Within 30 days from the end of the invoice month | All service exports from 1 October 2026 |
| FIRC or FIRA | The AD bank that credits the rupees | After the payment is credited; ask your AD bank for one per receipt | Freelancers and agencies paid by UAE clients |
| Inward remittance certificate for RDA payouts (tourists) | The AD bank, under para 3(d) of the RDA Master Direction | When a tourist must prove funds came from abroad, for example to re-convert unused rupees | Tourists receiving money through an exchange house |
| Purpose code | The AD bank reports it under FETERS | With each inward remittance; confirm the code with your bank | Classifying the UAE receipt correctly |
What changed in the rules for receiving money from the UAE in India this year?
The export side changed on 1 October 2026, when the FEMA (Export and Import of Goods and Services) Regulations, 2026 came into force. A.P. (DIR Series) Circular No. 20 superseded the Master Directions on export and import of goods and services from the same date. RBI updated the exchange house Master Direction as on 1 October 2026 to let a Board committee approve additional drawing arrangements, and its Rs 15 lakh trade limit is unchanged.
- New regulations: The 2026 Regulations replaced the 2015 export regulations from 1 October 2026.
- Realisation: An amendment dated 22 September 2026 set nine months, or twelve months for rupee invoicing, in place of the longer periods first notified (Regulation 5 footnotes).
- Monthly EDF: Service exporters file one EDF per month within 30 days of month end under Regulation 3(2). See the EDF guide.
- Small invoices: Invoices to UAE clients worth up to Rs 10 lakh can be closed in EDPMS on the exporter's declaration under Regulation 4(2).
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.
- RBI Master Direction: Opening and Maintenance of Rupee/Foreign Currency Vostro Accounts of Non-resident Exchange Houses, updated as on 1 October 2026, Paras 1, 2(a), 3(a), 3(d), 4(a) to (c) (checked 6 Oct 2026)
- RBI Master Direction: Money Transfer Service Scheme (MTSS), updated as on 29 September 2026, Para 3.4(a) to (c) (checked 6 Oct 2026)
- RBI: FEMA (Export and Import of Goods and Services) Regulations, 2026, Notification FEMA 23(R)/2026-RB, as amended by FEMA 23(R)/(1)/2026-RB, Regulations 1(2), 3(2), 4(2), 5(1), 18(2); footnotes to Regulation 5 (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20 dated 16 January 2026: Export and Import of Goods and Services, Para 4 (checked 6 Oct 2026)
- RBI: FEMA (Manner of Receipt and Payment) Regulations, 2023, Regulation 3(2)(I)(a)(iii) and 3(2)(II) (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84 (2012), FETERS purpose codes for receipts, Group 13 Transfers, P1301 and P1302 (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84 dated 29 February 2012: Reporting under FETERS (checked 6 Oct 2026)
- IGST Act, 2017: Section 2, Definitions, Clause (6), export of services (checked 6 Oct 2026)
- IGST Act, 2017: Section 16, Zero rated supply, Sub-sections (1) and (3) (checked 6 Oct 2026)
- CGST Rules, 2017: Rule 96A, Export under bond or Letter of Undertaking, Sub-rule (1) (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)
- Remitly: Send Money to India from the US (checked 6 Oct 2026)
Frequently asked questions
Can a UAE client pay an Indian freelancer's invoice through a UAE exchange house in 2026?
Yes, within a limit. The RBI Master Direction on exchange house vostro accounts permits trade transactions up to Rs 15 lakh per transaction under a Rupee Drawing Arrangement. The payment is still an export receipt under the FEMA Regulations 2026, so the EDF, purpose code and FIRC or FIRA steps apply. Confirm with your AD bank first.
Is there a USD 2,500 limit on UAE to India transfers under MTSS?
Yes, for money transfer service payouts. Paragraph 3.4 of the MTSS Master Direction caps each remittance at USD 2,500 and allows one beneficiary 30 remittances in a calendar year. Amounts up to Rs 50,000 may be paid in cash. Trade related remittances and credits to NRE accounts are not allowed under MTSS.
Can UAE exchange house remittances be credited to an NRE account in India?
Yes. The Rupee Drawing Arrangement Master Direction lists credit to NRE accounts held by Non-Resident Indians as a permitted transaction. It also says these payouts get the same status as remittances made in foreign exchange in an approved manner. MTSS payouts, by contrast, cannot be credited to NRE accounts.
Which purpose code applies to AED sent to India by family working in the UAE?
The RBI receipt purpose code list has P1301 for inward remittance from Indian non-residents towards family maintenance and savings, and P1302 for personal gifts and donations. Client fees use a services code instead. See purpose code for freelancers and confirm the code with your bank.
Does GST apply when an Indian freelancer is paid by a UAE client in rupees through an exchange house?
IGST section 2(6) treats a service as an export when payment arrives in convertible foreign exchange or in Indian rupees wherever permitted by RBI, with the client and place of supply outside India. Exports are zero-rated under section 16. Ask your tax adviser whether your bank's rupee credit meets this test. See LUT filing.
How long does an Indian exporter have to receive a UAE client's payment under FEMA 2026?
Regulation 5 of the FEMA Regulations 2026 gives nine months from the invoice date for services, or twelve months when the invoice is raised or settled in Indian rupees. The AD bank may extend the period on request with reasons. Read the export realisation period guide for extensions.
Can a UAE exchange house transfer be paid out in cash in India under the RDA rules?
No. The Rupee Drawing Arrangement Master Direction says no cash disbursement is allowed under rupee or foreign currency drawing arrangements. The partner bank can credit the beneficiary's account at another bank by NEFT or IMPS, but only to a KYC compliant account. Cash pickup is a feature of MTSS, within its Rs 50,000 cash limit.
What proof of a UAE inward remittance does an Indian exporter keep for the 2026 rules?
Keep the export invoice, the EDF filed under Regulation 3(2), and the FIRC or FIRA your bank issues once the money is credited in rupees. Your AD bank closes the EDPMS entry after the payment. Read what a FIRA is and receiving payments from UAE clients.