Wise, Remitly or Western Union: What RBI's Inward Remittance Rules Mean for Money from Canada
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
- Published:
- Last modified:
Short answer
Wise, Remitly and Western Union all move money from Canada to India in 2026. RBI rules depend on the purpose. Client payments are export receipts under the FEMA Regulations 2026, with an EDF, a purpose code, a FIRC or FIRA, and zero-rated GST billed under an LUT. Family money through MTSS is personal only.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Indian freelancers, agencies and companies paid by clients in Canada, and individuals in India receiving personal remittances from relatives 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 in Canada FINTRAC EFT reporting and CRA Regulation 105 | Skydo, Razorpay, Wise Business, Remitly, Western Union | 6 Oct 2026 |
How do Wise, Remitly and Western Union compare for receiving money from Canada in an Indian bank account?
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 an inward remittance from Canada to India?
An inward remittance from Canada is governed by one of two RBI frameworks, depending on its purpose. A Canadian client paying 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 sending money home through a money transfer company's Indian agent falls under the RBI Master Direction on MTSS, where remitters and beneficiaries must be individuals. For example, a Toronto client paying a Pune designer CAD 4,000 is an export, while CAD 600 from a parent in Calgary is a personal remittance. See receiving money from Canada.
| 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 other receipts can be in INR or any foreign currency, including CAD, through an authorised bank or authorised person. | Anyone checking that a CAD receipt is allowed |
| 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 all of a month's exports. | 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 ₹10 lakh, the EDPMS entry can be closed on the exporter's declaration, including in bulk each quarter. | Freelancers with smaller CAD invoices |
| Purpose code reporting | FEMA Regulations, 2026; receipt purpose codes | Reg 18(2); Group 13 Transfers | The AD bank reports each foreign trade transaction in FETERS with a purpose code. Inward remittance from Indian non-residents towards family maintenance and savings has its own code, P1301. | Matching the code to the reason for the money |
| Personal remittances via MTSS | RBI Master Direction on MTSS | Paras 1.1, 3.4 and 8(ii) | Only personal remittances between individuals are allowed. Each is capped at USD 2,500, and one beneficiary can receive 30 in a calendar year. Trade related remittances and NRE credits are barred. | Families receiving money from relatives in Canada |
| Canadian EFT reporting | FINTRAC EFT reporting guidance | Sections 3 and 4 | Canadian financial entities and money services businesses report an international transfer of CAD 10,000 or more in a single transaction to FINTRAC. | Senders in Canada moving larger amounts |
Which option leaves the most rupees when CAD 500, CAD 2,000 or CAD 5,000 is sent from Canada 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 Canada to India payments?
A services export paid from Canada needs an LUT before invoicing, an EDF after invoicing, and a FIRC or FIRA once the CAD is credited in rupees. The supply is an export of services when the client and place of supply are outside India and payment arrives in convertible foreign exchange or in rupees where RBI permits, and exports are zero-rated. A family remittance is not an export, so no invoice, EDF or LUT applies. 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 with the jurisdictional Commissioner under CGST Rule 96A | Before export, so invoices to Canada go out without IGST | GST-registered exporters |
| Export invoice | The exporter | For every supply; its date starts the EDF and realisation clocks | All freelancers and agencies |
| 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; check the format with your AD bank | GST records and EDPMS closure |
| KYC compliant bank account | The recipient bank, under para 8(ii) of the MTSS Master Direction | Before a direct-to-account MTSS credit, which carries an alert that it must not be credited to KYC non-compliant, NRE or NRO accounts | Families receiving personal remittances |
| Regulation 105 waiver (form R105) | Canada Revenue Agency | Only when a non-resident performs services in Canada and the client must withhold tax | Indian professionals who travel to Canada to work on site |
What changed in the rules for money from Canada to India this year?
The export side of the rules 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 on Import of Goods and Services and the listed circulars from the same date. The MTSS Master Direction, updated as on 29 September 2026, still sets the personal remittance limits.
- 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 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). See the EDF guide.
- MTSS: The MTSS Master Direction was updated as on 29 September 2026, and it still sets the USD 2,500 per remittance and 30-per-year limits.
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 and 8(ii) (direct-to-account alert) (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84 (2012), FETERS purpose codes for receipts, P0802; Group 13 Transfers, P1301 and P1302 (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-section (1) (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 3 and 4, CAD 10,000 single transaction threshold (checked 6 Oct 2026)
- Canada Revenue Agency: Rendering services in Canada, Regulation 105 withholding and form R105 waiver (checked 6 Oct 2026)
- Canada Revenue Agency: Guidelines for treaty-based waivers involving Regulation 105 withholding, Applicants performing services in Canada (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
Is a Canada to India money transfer through Wise, Remitly or Western Union to an Indian bank account official under RBI rules?
Yes, when the money arrives through an authorised bank or authorised person, as the Manner of Receipt and Payment Regulations require. Canada is outside the ACU, so CAD or INR receipts are allowed. Your AD bank reports the credit with a purpose code. The comparison table on this page shows each provider's verified data.
Can a Canadian client pay an Indian freelancer through an MTSS money transfer to an India bank account?
No. The MTSS Master Direction 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 come through a channel your AD bank reports as an export. See receiving CAD payments.
How much family money from Canada can one person in India receive under MTSS each year?
Under paragraph 3.4 of the MTSS Master Direction, each remittance is capped at USD 2,500, so a CAD transfer is measured against that dollar limit. One beneficiary can receive 30 remittances in a calendar year. Amounts up to ₹50,000 may be paid in cash, and larger amounts go by cheque, draft or bank credit.
Which RBI purpose code applies to money from family in Canada credited to an Indian bank account?
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 such as P0802 for software. See P1301 purpose code and confirm the code with your bank.
Can a Remitly or Western Union transfer from Canada be credited to an NRE or NRO account in India?
Not when it runs as an MTSS remittance. The MTSS Master Direction says direct-to-account MTSS credits must carry an alert that they are not to be credited to KYC non-compliant, NRE or NRO accounts. Ask the provider whether your transfer runs under MTSS. If it does, use a KYC compliant account other than NRE or NRO.
Does a Canadian client withhold tax when paying an Indian freelancer who works from India?
The CRA's Regulation 105 guidelines describe the withholding as applying to non-residents performing services in Canada. The CRA pages do not address work done entirely from India, so ask the client why tax was withheld. Keep any Canadian slip and read foreign withholding tax and DTAA for exporters.
Does a large Canada to India transfer through Wise, Remitly or Western Union get reported to FINTRAC?
Yes, at CAD 10,000 or more. FINTRAC's EFT guidance requires Canadian financial entities and money services businesses to report an international transfer of CAD 10,000 or more in a single transaction. The reporting duty sits with the reporting entity in Canada that initiates the transfer. The guidance places no filing duty on the recipient in India.
How long can a CAD invoice stay unpaid under the FEMA 2026 inward remittance rules?
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 you give reasons. Read the export realisation period guide for details.