Wise or Western Union: What RBI's Inward Remittance Rules Mean for Bringing Money from Europe
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
- Published:
- Last modified:
Short answer
Wise and Western Union are two ways to bring money from Europe into India in 2026. Client payments for services follow RBI's FEMA Regulations 2026, with an EDF, nine-month realisation and a purpose code. The bank issues 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 EUR or other European currencies by clients in Europe, and individuals in India receiving personal remittances from family in Europe. | 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 EU Regulation 2023/1113 on information accompanying transfers on the European side | Skydo, Razorpay, Wise Business, Western Union | 6 Oct 2026 |
How do Wise and Western Union compare for bringing money from Europe 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 | ₹4,69,991 | 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 | ₹4,67,646 | 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 | ₹4,64,244 | Wise Business 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 Europe?
The RBI rule depends on what the money from Europe is for. A European 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 Europe 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 excludes trade related remittances. For example, a designer invoicing a Berlin client EUR 3,000 follows the export rules, while EUR 400 sent by a sibling in Dublin for family expenses is a personal transfer. See how to receive EUR 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) | European countries are not ACU members, so trade and non-trade receipts can be in INR or any foreign currency, including EUR, routed through an authorised bank or authorised person. | Anyone checking that a EUR 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 European 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 on request. | European 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 EUR 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 cross-border 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 Europe |
| EU payer information | EU Regulation 2023/1113 | Articles 4, 6(2) and 40 | From 30 December 2024, an EU payment service provider sends the payer's and payee's names and account details with a transfer. When the payee's provider is outside the EU, transfers of up to EUR 1,000 may carry a reduced set. | Senders in the EU and recipients checking that names match |
Which option leaves the most rupees when EUR 500, EUR 2,000 or EUR 5,000 is sent from Europe 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 | ₹1,798 | ₹0 | ₹324 | ₹45,201 | 4.48% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $2,000 | ₹1,798 | ₹0 | ₹324 | ₹1,87,170 | 1.12% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $5,000 | ₹2,745 | ₹0 | ₹494 | ₹4,69,991 | 0.68% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Razorpay, $500 | ₹1,000 | ₹0 | ₹180 | ₹46,143 | 2.49% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $2,000 | ₹1,893 | ₹0 | ₹341 | ₹1,87,058 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $5,000 | ₹4,732 | ₹0 | ₹852 | ₹4,67,646 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Wise Business, $500 | ₹928 | ₹0 | ₹167 | ₹46,227 | 2.32% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $2,000 | ₹3,157 | ₹0 | ₹568 | ₹1,85,566 | 1.97% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $5,000 | ₹7,615 | ₹0 | ₹1,371 | ₹4,64,244 | 1.90% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
For example, on a $2,000 invoice Skydo pays about ₹1,87,170 and Wise Business about ₹1,85,566 at today's reference rate, a difference of ₹1,604.
What documents and GST apply to payments received in India from Europe?
A services export paid from Europe needs an LUT before invoicing, an EDF after invoicing, and a FIRC or FIRA after the EUR 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 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 files it with the jurisdictional Commissioner under CGST Rule 96A | Before export, so EUR invoices go out without IGST | GST-registered exporters billing European 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 by European clients |
| Purpose code | The AD bank reports it under FETERS | With each inward remittance; confirm the code with your bank | Classifying the EUR receipt correctly |
| KYC for MTSS credits | The recipient bank, under para 8(ii) of the MTSS Master Direction | Before a direct-to-account MTSS credit; an account that is not KYC compliant must complete KYC before the money is credited or withdrawn | Families receiving personal remittances |
What changed in the rules for bringing money from Europe 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 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: EUR invoices worth up to Rs 10 lakh can be closed in EDPMS on the exporter's declaration under Regulation 4(2).
- Unrealised exports: Exports unrealised one year past the due date limit further exports to full advance or an irrevocable letter of credit under Regulation 13.
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), 13, 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)
- CGST Rules, 2017: Rule 89, Application for refund, Rule 89(2)(c) (checked 6 Oct 2026)
- European Central Bank: Single Euro Payments Area (SEPA), SEPA countries (status 22 May 2025) (checked 6 Oct 2026)
- Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets, Articles 4(1) and (2), 6(2) and 40 (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)
- Western Union India: Receive money (checked 6 Oct 2026)
Frequently asked questions
Can a European client pay an Indian freelancer's EUR invoice through an MTSS money transfer in 2026?
No. The RBI Master Direction on MTSS allows only cross-border 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.
What are the RBI permitted methods to receive an inward remittance from Europe into an Indian bank account?
Under the Manner of Receipt and Payment Regulations, a receipt from a European country can be in INR or any foreign currency through an authorised bank or authorised person. Client fees follow the export rules and family money can also come through MTSS. Read what an inward remittance is for the basics.
Is there a limit on EUR family remittances to India under MTSS?
Yes. Under paragraph 3.4 of the MTSS Master Direction, each remittance is capped at USD 2,500, so a EUR transfer is measured against that dollar limit. 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 EUR received in India from family in Europe?
The RBI receipt purpose code list has P1301 for inward remittances 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 final code with your bank before the money is credited.
Can a SEPA transfer from Europe land directly in an Indian bank account?
No. The SEPA region consists of 41 European countries, and India is not one of them. A SEPA credit transfer moves euros between accounts held in SEPA countries. Money then moved from that account to India still follows FEMA rules. See what a SEPA transfer is.
Does GST apply when an Indian freelancer is paid in EUR by a client in Europe?
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 EUR. 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 EUR 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.
Do Wise and Western Union transfers from Europe follow the same RBI inward remittance rules as a bank transfer?
Yes, the rules follow the purpose of the money. A client payment for services is an export under the FEMA Regulations 2026 whichever channel is used. A family transfer paid out through an Indian agent falls under the MTSS Master Direction. The comparison table on this page shows each provider's verified data.