Wise, Remitly or Western Union: The Cheapest Way to Receive USD in India Right Now
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
- Published:
- Last modified:
Short answer
Wise, Remitly and Western Union are compared here for receiving USD in India in 2026. Client payments follow RBI's FEMA Regulations 2026: an EDF, nine-month realisation, a purpose code and a FIRC or FIRA. GST is zero-rated under an LUT. Family transfers paid out under MTSS are capped at USD 2,500 each.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Indian freelancers, agencies and companies paid in US dollars by clients abroad, and individuals in India receiving USD personal remittances from family overseas. | FEMA (Export and Import of Goods and Services) Regulations, 2026, FEMA Manner of Receipt and Payment Regulations, 2023, RBI Master Direction on MTSS, RBI Master Direction on accounts by residents (EEFC), FETERS purpose codes, IGST Act s.2(6) and s.16, CGST Rule 96A | Skydo, Razorpay, Wise Business, Remitly, Western Union | 6 Oct 2026 |
How do Wise, Remitly and Western Union compare for receiving USD in 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 | ₹4,69,722 | 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 | ₹4,67,378 | 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 | ₹4,63,978 | 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 USD received in India?
The RBI rule for USD received in India depends on what the money is for. A foreign client paying an Indian freelancer or company in USD for services is an export receipt under the FEMA (Export and Import of Goods and Services) Regulations, 2026, in force from 1 October 2026. USD sent by a relative abroad is a personal remittance, and when a money transfer company pays it out through an Indian agent, the RBI Master Direction on MTSS applies and excludes trade related remittances. For example, a developer billing a client USD 4,000 follows the export rules, while USD 300 from a sibling for family expenses is a personal transfer. See the cheapest ways to receive USD 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) | For countries outside the Asian Clearing Union, trade and non-trade receipts can be in INR or any foreign currency, including USD, through an authorised bank or authorised person. | Anyone checking that a USD receipt is permitted |
| Export Declaration Form | FEMA Regulations, 2026 | Reg 3(2) | A service exporter 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 exports in a month. | Freelancers and agencies invoicing in USD |
| Realisation period | FEMA Regulations, 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. The AD bank may extend the period. | 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 may be closed on the exporter's declaration that payment was realised. | Freelancers with smaller USD 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. Family maintenance has its own code, P1301. | Choosing the right code with your bank |
| Personal remittances via MTSS | RBI Master Direction on MTSS | Para 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 in a calendar year. Trade related remittances are not allowed. | Families receiving USD from relatives abroad |
| EEFC account | RBI Master Direction on accounts by residents; FEMA 10(R) | Para 3.1; Schedule I | A resident can credit 100 percent of foreign exchange earnings received through normal banking channels to an EEFC account. Each month's accruals, net of approved use, are converted into rupees by the last day of the next month. | Exporters who pay foreign currency expenses |
Which option leaves the most rupees when USD 500, USD 2,000 or USD 5,000 is received in 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 | ₹324 | ₹45,175 | 4.48% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $2,000 | ₹1,797 | ₹0 | ₹324 | ₹1,87,063 | 1.12% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $5,000 | ₹2,743 | ₹0 | ₹494 | ₹4,69,722 | 0.68% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Razorpay, $500 | ₹1,000 | ₹0 | ₹180 | ₹46,116 | 2.49% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $2,000 | ₹1,892 | ₹0 | ₹341 | ₹1,86,951 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $5,000 | ₹4,730 | ₹0 | ₹851 | ₹4,67,378 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Wise Business, $500 | ₹928 | ₹0 | ₹167 | ₹46,201 | 2.32% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $2,000 | ₹3,156 | ₹0 | ₹568 | ₹1,85,460 | 1.97% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $5,000 | ₹7,611 | ₹0 | ₹1,370 | ₹4,63,978 | 1.90% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
For example, on a $2,000 invoice Skydo pays about ₹1,87,063 and Wise Business about ₹1,85,460 at today's reference rate, a difference of ₹1,603.
What documents and GST apply to USD payments received in India?
A USD services export needs an LUT before invoicing, an EDF after invoicing, and a FIRC or FIRA once the USD 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. A personal remittance from family is not an export, so no EDF, LUT or invoice applies. 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 USD invoices go out without IGST | GST-registered exporters |
| 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 each credit; keep one per receipt as a record of the inward remittance | Freelancers and agencies paid in USD |
| Purpose code | The AD bank reports it under FETERS | With each inward remittance; confirm the code with your bank | Classifying the USD receipt correctly |
| KYC compliant resident account | The recipient bank, under the MTSS Master Direction | Before a direct-to-account MTSS credit, which must not go to KYC non-compliant, NRE or NRO accounts | Families receiving personal remittances |
What changed in the rules for receiving USD in India this year?
The main change in 2026 is that the FEMA (Export and Import of Goods and Services) Regulations, 2026 came into force on 1 October 2026. From the same date, A.P. (DIR Series) Circular No. 20 superseded the Master Directions on Export and on Import of Goods and Services and the circulars listed in its annex.
- New regulations: The 2026 Regulations replaced the earlier 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).
- Monthly EDF: Service exporters file the EDF within 30 days of the end of the invoice month under Regulation 3(2), and non-software exporters may file it by the payment date. See the EDF guide.
- Small invoices: Invoices up to Rs 10 lakh can close in EDPMS on the exporter's declaration, also in bulk each quarter (Regulation 4(2)).
- MTSS update: The MTSS Master Direction was updated as on 29 September 2026, and its USD 2,500 and 30-per-year limits remain.
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 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, Paras 4 and 7; Annex A (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, Para 3.4; para 8(ii) on direct credit to beneficiary bank accounts (checked 6 Oct 2026)
- RBI Master Direction: Deposits and Accounts (foreign currency accounts by residents), updated as on 2 September 2026, Para 3.1 (EEFC account), sub-paragraphs 1, 4 and 6 (checked 6 Oct 2026)
- RBI: FEMA (Foreign Currency Accounts by a person resident in India) Regulations, 2015, FEMA 10(R), Regulation 4(A); Schedule I (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84 (2012), FETERS purpose codes for receipts, P0802, P1006, P1301 and P1302 (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84 dated 29 February 2012: Compilation of R-Returns, Reporting under FETERS, Purpose codes for FETERS reporting (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)(b) (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 Remitly or Western Union carry a USD client payment to India under the RBI MTSS rules?
Not under MTSS. The RBI Master Direction on MTSS allows only personal remittances such as family maintenance and excludes trade related remittances. A client payment for services is an export receipt under the FEMA Regulations 2026, so it must arrive through a channel your AD bank can report as an export. Ask the provider which arrangement it uses.
What is the RBI MTSS limit on a personal USD remittance received in India in 2026?
Under paragraph 3.4 of the MTSS Master Direction, each inward personal remittance under the scheme is capped at USD 2,500. One beneficiary can receive 30 remittances in a calendar year. Amounts up to Rs 50,000 may be paid in cash. Direct-to-account credits must not go to KYC non-compliant, NRE or NRO accounts.
Which purpose code should an Indian freelancer give the bank for a USD payment received through Wise?
The code depends on the service, whichever channel carries the USD. The RBI purpose code list includes P0802 for software consultancy/implementation (other than those covered in SOFTEX form) and P1006 for business and management consultancy and public relations services. Use the purpose code for freelancers guide and confirm the code with your AD bank.
Can USD be held in an EEFC account to avoid converting at a poor exchange rate?
Yes, for a limited time. The RBI Master Direction lets a resident credit 100 percent of foreign exchange earnings received through normal banking channels to an EEFC account. The account pays no interest. Each month's accruals, net of approved payments, must be converted into rupees by the last day of the next month. See EEFC account benefits.
Does IGST apply to USD export payments received in India when an LUT is filed?
No IGST is charged on the invoice when you supply under an LUT in FORM GST RFD-11. The service must meet the export conditions in IGST section 2(6), including payment in convertible foreign exchange. If payment is not received within one year or the FEMA period, whichever is later, tax with interest falls due. See LUT filing.
How long can a USD invoice stay unpaid under the FEMA 2026 realisation rule?
Regulation 5 of the FEMA Regulations 2026 requires the full export value to be realised within 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. Read the export realisation period guide for the extension steps.
Which purpose code applies to USD sent to India by family abroad through Remitly or Western Union?
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. A client's fee uses a services code instead. Read the P1301 purpose code guide and confirm the code with your bank.
What FIRC or FIRA record does an Indian exporter keep for each USD inward remittance in 2026?
Keep the FIRC or FIRA your AD bank issues once the USD is credited, together with the export invoice and the EDF filed under Regulation 3(2). Your AD bank uses the realisation details to close the EDPMS entry. Read what a FIRA is and how to receive USD payments in India.