Wise, Remitly or Western Union: The Cheapest Way to Get British Pounds into India
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
- Published:
- Last modified:
Short answer
Wise, Remitly and Western Union are compared here for getting British pounds into India in 2026. GBP client fees are export receipts under RBI's FEMA Regulations 2026, with an EDF and nine-month realisation. Banks report a purpose code and issue a FIRC or FIRA. GST is zero-rated under an LUT. Family transfers through MTSS are capped at USD 2,500 each.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Indian freelancers, agencies and companies paid in GBP by UK clients, and individuals in India receiving personal remittances in GBP from family in the UK. | FEMA (Export and Import of Goods and Services) Regulations, 2026, FEMA Manner of Receipt and Payment Regulations, 2023, RBI Master Direction on MTSS, FETERS purpose codes, IGST Act s.2(6) and s.16, CGST Rule 96A, and the UK Payment Services Regulations 2017, regulation 43 on the sender's side | Skydo, Razorpay, Wise Business, Remitly, Western Union | 6 Oct 2026 |
How do Wise, Remitly and Western Union compare for getting British pounds into 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 | ₹4,71,037 | 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) |
| 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) |
| Western Union | Personal and family remittances sent to India from abroad | Receiver free; sender fees vary; MTSS bars trade remittances | Margin not published; states it earns from currency exchange | Not confirmed; no bank deposit timeline given | Not confirmed; not a route for export proceeds | Paid under RBI MTSS via authorised Indian Agents | Not for business: RBI MTSS bars trade related remittances | Western Union pricing (checked 6 Oct 2026) |
Which RBI rule governs British pounds received in India?
The RBI rule for GBP received in India depends on what the money is for. A UK client paying an Indian freelancer or company for services is an export receipt under the FEMA (Export and Import of Goods and Services) Regulations, 2026, in force from 1 October 2026. A relative in the UK sending money home is a personal remittance, and when it is paid out through a money transfer company's Indian agent the RBI Master Direction on MTSS applies, which bars trade related remittances. For example, a designer invoicing a Manchester client GBP 1,500 follows the export rules, while GBP 400 sent by a daughter in London for household costs is a personal transfer. See how to receive GBP 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)(ii) | Receipts from countries outside the Asian Clearing Union, such as the UK, can be in INR or any foreign currency, including GBP, through an authorised bank or authorised person. | Anyone checking that a GBP receipt is permitted |
| Export Declaration Form | FEMA Regulations, 2026 | Reg 3(2) | An exporter of services files an EDF for the full export value within 30 days from the end of the month in which the invoice was raised. One EDF can cover all of a month's exports. | Freelancers and agencies invoicing UK clients in GBP |
| Realisation period | FEMA Regulations, 2026; amendment of 22 September 2026 | Reg 5(1) | The full export value is realised within nine months from the invoice date for services, or twelve months if invoiced or settled in INR. | UK clients on long payment terms |
| EDPMS closure | FEMA Regulations, 2026 | Reg 4(2), first proviso | For invoices up to Rs 10 lakh or its foreign currency equivalent, the EDPMS entry can be closed on the exporter's declaration that payment was realised. | Freelancers with smaller GBP invoices |
| Purpose code reporting | FEMA Regulations, 2026; FETERS circular; FETERS purpose codes | Reg 18(2); Circular No. 84 para 2; receipt purpose code list | The AD bank reports all foreign trade transactions in FETERS, and FETERS classifies every foreign exchange transaction by purpose code. Client fees take a services code. P1301 covers inward remittance from Indian non-residents towards family maintenance and savings. | Choosing the right code with your bank |
| Personal remittances via MTSS | RBI Master Direction on MTSS | Paras 1.1 and 3.4 | Only personal remittances, such as family maintenance, are allowed. Each remittance is capped at USD 2,500 and one beneficiary can receive 30 per calendar year. Trade related remittances and credits to NRE accounts are not allowed. | Families receiving GBP from relatives in the UK |
| UK cost disclosure | Payment Services Regulations 2017 | Reg 43(2)(c) and (d); reg 40(1)(b)(iii) and 40(3) | Before a single payment, a UK payment service provider gives the sender the charges payable and, where applicable, the actual or reference exchange rate. Where only one provider is in the UK, these rules cover the part of the transaction carried out in the UK. | UK senders comparing the total cost of a GBP transfer |
Which option leaves the most rupees when GBP 500, GBP 2,000 or GBP 5,000 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 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 |
For example, on a $2,000 invoice Skydo pays about ₹1,87,587 and Wise Business about ₹1,85,979 at today's reference rate, a difference of ₹1,607.
What documents and GST apply to British pound payments received in India?
A services export paid in GBP needs an LUT before invoicing, an EDF after invoicing, and a FIRC or FIRA after the pounds are converted and 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 INR where RBI permits. A personal remittance from family is not an export, so no EDF, LUT or export invoice applies to it. Read FIRC vs FIRA vs e-BRC for the differences.
| Document | Who issues it | When needed | Best for |
|---|---|---|---|
| LUT in FORM GST RFD-11 | The exporter furnishes it to the jurisdictional Commissioner under CGST Rule 96A | Before export, so GBP invoices go out without IGST | GST-registered exporters billing UK 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; Rule 89(2)(c) names BRCs or FIRCs for export of services refund claims | Freelancers and agencies paid in GBP |
| Purpose code | The AD bank reports it under FETERS | With each inward remittance; confirm the code with your bank | Classifying the GBP receipt correctly |
| KYC for MTSS credits | The recipient bank, under the MTSS Master Direction | Before a direct-to-account MTSS credit; the account must be KYC compliant and not an NRE or NRO account | Families receiving personal remittances |
What changed in the rules for getting British pounds into 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. The MTSS Master Direction was updated as on 29 September 2026, and its USD 2,500 and 30-per-year limits remain.
- New regulations: The 2026 Regulations govern GBP export receipts from 1 October 2026, and Circular No. 20 supersedes the export and import Master Directions and the circulars listed in its Annex.
- Realisation: An amendment dated 22 September 2026 set nine months, or twelve months for rupee invoicing, in place of the fifteen and eighteen months first notified.
- Monthly EDF: Service exporters file the EDF within 30 days of the end of the invoice month under Regulation 3(2). See the EDF guide.
- Small invoices: GBP invoices 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: FEMA (Export and Import of Goods and Services) Regulations, 2026, Notification FEMA 23(R)/2026-RB, Regulations 1(2), 3(2), 4(2), 5(1), 18(2) (checked 6 Oct 2026)
- RBI: FEMA (Export and Import of Goods and Services) (Amendment) Regulations, 2026, Notification FEMA 23(R)/(1)/2026-RB (22 September 2026), Amendment to regulation 5 (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20 dated 16 January 2026 (RBI/2025-26/194): Export and Import of Goods and Services, Supersession of Master Directions and Annex circulars from 1 October 2026 (checked 6 Oct 2026)
- RBI: FEMA (Manner of Receipt and Payment) Regulations, 2023, Regulation 3(2)(I)(a)(iii) and 3(2)(II)(ii) (checked 6 Oct 2026)
- RBI Master Direction: Money Transfer Service Scheme (MTSS), updated as on 29 September 2026, Paras 1.1 and 3.4(a) to (c); direct-to-account credit alert (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, Paragraph 2: purpose code reporting of all foreign exchange transactions (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)
- CGST Rules, 2017: Rule 89, Application for refund, Rule 89(2)(c) (checked 6 Oct 2026)
- UK Payment Services Regulations 2017, regulation 43: Information required prior to the conclusion of a single payment service contract, Regulation 43(1) and 43(2)(c), (d) (checked 6 Oct 2026)
- UK Payment Services Regulations 2017, regulation 40: Application of Part 6, Regulation 40(1)(b)(iii), 40(3) and 40(5) (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)
- Western Union India: Receive money (checked 6 Oct 2026)
Frequently asked questions
Can a UK client pay a GBP invoice to an Indian freelancer through an MTSS transfer in 2026?
No, not as an MTSS payout. The RBI Master Direction on MTSS allows only personal remittances such as family maintenance and bars trade related remittances. A client fee is an export receipt under the FEMA Regulations 2026, so it must arrive through a channel your AD bank can report as an export.
Is there a USD 2,500 limit on GBP family transfers to India paid out through MTSS agents?
Yes. Paragraph 3.4 of the MTSS Master Direction caps each remittance at USD 2,500, and the cap is stated only in dollars, so check the GBP equivalent with the operator. One beneficiary can receive 30 remittances a calendar year. Up to Rs 50,000 may be paid in cash and larger amounts go by cheque, draft or bank credit.
What must a UK provider show about the GBP to INR exchange rate before a transfer?
Under regulation 43(2) of the UK Payment Services Regulations 2017, a payment service provider gives the sender the charges payable and, where applicable, the actual or reference exchange rate before the sender is bound. Comparing both figures helps estimate the rupees that will arrive. See why SWIFT charges reduce what arrives.
Which purpose code applies to GBP sent to India by family in the UK?
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 take a services code instead. See purpose code for freelancers and confirm the code with your bank.
Does GST apply when an Indian freelancer receives GBP from a UK client in 2026?
The service is an export under IGST section 2(6) when the recipient and place of supply are outside India and payment arrives in convertible foreign exchange such as GBP. Exports are zero-rated under section 16. With an LUT, no IGST is charged on the invoice. See LUT filing.
How long does an Indian exporter have to receive a GBP invoice payment under FEMA 2026?
Regulation 5 of the FEMA Regulations 2026, as amended on 22 September 2026, gives nine months from the invoice date for services, or twelve months when the invoice is raised or settled in Indian rupees. Read the export realisation period guide for extensions from your AD bank.
Can GBP sent through an MTSS operator be credited to an NRE or NRO account in India?
No. The MTSS Master Direction says direct-to-account MTSS remittances carry an alert that they must not be credited to KYC non-compliant accounts or to NRE or NRO accounts. Paragraph 3.4 also bars MTSS credits to NRE accounts. A KYC compliant resident savings account is used instead.
What proof of a GBP inward remittance does an Indian exporter keep for GST and RBI in 2026?
Keep the export invoice, the EDF filed under Regulation 3(2), and the FIRC or FIRA your bank issues once the GBP is credited in rupees. CGST Rule 89(2)(c) names FIRCs for export of services refund claims. Read what a FIRA is and receiving money from the UK.