Wise, Remitly or Western Union: The Cheapest Way to Get Canadian Dollars into India
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
- Published:
- Last modified:
Short answer
Wise, Remitly and Western Union are options for moving Canadian dollars into India in 2026. Client payments for services follow RBI's FEMA Regulations 2026: an EDF, nine-month realisation and purpose code reporting, with a FIRC or FIRA from the bank. Exports are zero-rated, with no IGST under an LUT. Family transfers under MTSS are capped at USD 2,500 each.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Indian freelancers, agencies and companies paid in CAD by clients in Canada, and individuals in India receiving personal remittances from family in Canada. | 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 FINTRAC's electronic funds transfer reporting on the Canadian side | Skydo, Razorpay, Wise Business, Remitly, Western Union | 6 Oct 2026 |
How do Wise, Remitly and Western Union compare for getting Canadian dollars 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 | ₹4,70,098 | 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 | ₹4,67,752 | 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 | ₹4,64,350 | 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 money received in India from Canada in Canadian dollars?
The RBI rule depends on what the CAD payment is for. A Canadian 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 Canada sending money home is a personal remittance, and when it runs through a money transfer company's Indian agent the RBI Master Direction on MTSS applies, which excludes trade related remittances. For example, a developer invoicing a Toronto client CAD 3,000 follows the export rules, while CAD 500 sent by a sibling for family expenses is a personal transfer. See how to receive CAD 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) | Canada is not an ACU member, so trade and non-trade receipts can be in INR or any foreign currency, including CAD, routed through an authorised bank or authorised person. | Anyone checking that a CAD 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 invoice month. One EDF can cover a month's exports. Services other than software may file on or before the payment date. | Freelancers and agencies invoicing Canadian 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. | Canadian clients on long payment terms |
| EDPMS closure | FEMA Regulations, 2026 | Reg 4(2), first proviso | For invoices up to Rs 10 lakh, the EDPMS entry can be closed on the exporter's declaration, also in quarterly bulk. | Freelancers with smaller CAD invoices |
| 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 sold. Family maintenance has its own code, P1301, in the transfers group. | Choosing the right code with your bank |
| Personal remittances via MTSS | RBI Master Direction on MTSS | Paras 1.1 and 3.4 | Only inward 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 money from relatives in Canada |
| Canadian reporting | FINTRAC EFT reporting guidance | Sections 3 to 5, including the 24-hour rule | A Canadian financial entity, money services business or casino reports an international electronic funds transfer of CAD 10,000 or more in a single transaction to FINTRAC. Two or more transfers totalling CAD 10,000 within a static 24-hour window are also reported when known to be by or for the same person or beneficiary. | Senders in Canada moving larger amounts |
Which option leaves the most rupees when CAD 500, CAD 2,000 or CAD 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 | ₹1,799 | ₹0 | ₹324 | ₹45,211 | 4.48% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $2,000 | ₹1,799 | ₹0 | ₹324 | ₹1,87,213 | 1.12% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $5,000 | ₹2,745 | ₹0 | ₹494 | ₹4,70,098 | 0.68% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Razorpay, $500 | ₹1,000 | ₹0 | ₹180 | ₹46,154 | 2.49% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $2,000 | ₹1,893 | ₹0 | ₹341 | ₹1,87,101 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $5,000 | ₹4,733 | ₹0 | ₹852 | ₹4,67,752 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Wise Business, $500 | ₹929 | ₹0 | ₹167 | ₹46,238 | 2.32% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $2,000 | ₹3,158 | ₹0 | ₹568 | ₹1,85,608 | 1.97% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $5,000 | ₹7,617 | ₹0 | ₹1,371 | ₹4,64,350 | 1.90% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
For example, on a $2,000 invoice Skydo pays about ₹1,87,213 and Wise Business about ₹1,85,608 at today's reference rate, a difference of ₹1,604.
What documents and GST apply to payments received in India from Canada?
A services export paid from Canada needs an LUT before invoicing, an EDF after invoicing, and a FIRC or FIRA after the CAD is 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. 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 for the differences.
| Document | Who issues it | When needed | Best for |
|---|---|---|---|
| LUT in FORM GST RFD-11 | The exporter files it with the jurisdictional Commissioner under CGST Rule 96A | Before export, so CAD invoices go out without IGST | GST-registered exporters billing Canadian 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; keep one per receipt as proof of export | Freelancers and agencies paid by Canadian clients |
| Purpose code | The AD bank reports it under FETERS | With each inward remittance; confirm the code with your bank | Classifying the CAD receipt correctly |
| KYC for MTSS credits | The recipient bank, under the MTSS Master Direction | Before a direct-to-account MTSS credit is allowed to a non-KYC account | Families receiving personal remittances |
What changed in the rules for receiving Canadian dollars 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 Direction on Export 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 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 fifteen and eighteen months 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: CAD 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, as amended by FEMA 23(R)/(1)/2026-RB, Regulations 1(2), 3(2), 4(2), 5(1), 18(2); footnotes 2 to 4 (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 (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, 3.4(a) to (c) and 8(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, Para 3 (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)
- FINTRAC: Reporting electronic funds transfers to FINTRAC, Sections 1, 3, 4 and 5 (24-hour rule) (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 Canadian client pay an Indian freelancer's CAD invoice through an MTSS money transfer in 2026?
No. The RBI Master Direction on MTSS allows only personal remittances such as family maintenance, and it bars trade related remittances. A client payment for services is an export receipt under the FEMA Regulations 2026, so it must come through a channel your AD bank can report as an export.
Is there a limit on CAD family remittances to India under MTSS?
Yes. Under paragraph 3.4 of the MTSS Master Direction, each remittance is capped at USD 2,500, and the cap is stated in US dollars. One beneficiary can receive 30 remittances in a calendar year. Amounts up to Rs 50,000 may be paid in cash and larger amounts go by cheque, draft or bank credit.
Which purpose code applies to CAD received in India from family in Canada?
The RBI receipt purpose code list has P1301, "Inward remittance from Indian nonresidents towards family maintenance and savings", and P1302, "Personal gifts and donations". Client fees use a services code instead. See purpose code for freelancers and confirm the final code with your bank before the money is credited.
Does GST apply when an Indian freelancer is paid in CAD by a Canadian client?
The service is an export under IGST section 2(6) when the client and place of supply are outside India and payment arrives in convertible foreign exchange such as CAD. 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 CAD 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 when the exporter gives reasons. Read the export realisation period guide for extensions.
Does a large CAD transfer to India get reported in Canada?
Yes, above a threshold. FINTRAC's EFT reporting guidance requires Canadian financial entities and money services businesses to report an international transfer of CAD 10,000 or more in one transaction. Under the 24-hour rule, two or more transfers totalling CAD 10,000 within a static 24-hour window are reported when known to be by or for the same person or beneficiary.
Can CAD sent through MTSS be credited to an NRE or NRO account in India?
No. The MTSS Master Direction says direct-to-account MTSS remittances should 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. Use a resident savings account that is KYC compliant.
What proof of a CAD 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 CAD is credited in rupees. Your AD bank closes the EDPMS entry after crediting the payment. Read what a FIRA is and receiving money from Canada.