Wise or Western Union: What RBI's Inward Remittance Rules Mean for Money from Australia
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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- Last modified:
Short answer
Wise and Western Union both carry money from Australia to India in 2026. RBI rules follow the purpose. Client fees are export receipts under the FEMA Regulations 2026, needing an EDF, a purpose code, a FIRC and a GST LUT. Family money paid out through MTSS is capped at USD 2,500 per transfer and cannot credit NRE or NRO accounts.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Indian freelancers, agencies and companies paid in AUD by Australian clients, residents in India receiving family money from Australia, and NRIs in Australia moving funds to their own NRE or NRO accounts. | 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 Deposits and Accounts (NRE and NRO), FETERS purpose codes, IGST Act s.2(6) and s.16, CGST Rule 96A, and ATO GST rules for non-resident businesses on the Australian side | Skydo, Razorpay, Wise Business, Western Union | 6 Oct 2026 |
How do Wise and Western Union compare for receiving money from Australia 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 | ₹4,70,098 | 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) |
| 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 Australia?
The RBI rule depends on why the money is sent from Australia. An Australian 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 Australia sending money home is a personal remittance, and when it is paid out by a money transfer company's Indian agent the RBI Master Direction on MTSS applies. Money an NRI sends to an NRE or NRO account follows the Master Direction on Deposits and Accounts. For example, a developer invoicing a Sydney client AUD 4,000 follows the export rules, while AUD 500 from a sister in Perth for household costs is a personal transfer. See how to receive money from Australia to India.
| Rule | Source | Clause | Plain meaning | Best for |
|---|---|---|---|---|
| Currency and channel | Manner of Receipt and Payment Regulations, 2023 | Reg 3(2)(II)(ii); Reg 3(2)(I)(a)(iii) for trade | Non-trade receipts from countries other than Nepal and Bhutan can be in INR or any foreign currency, including AUD. Trade receipts from countries outside the ACU can also be in INR or any foreign currency. | Anyone checking that an AUD receipt is permitted |
| 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 a month's exports, and services other than software may file on or before the payment date. | Freelancers and agencies invoicing Australian clients |
| Realisation period | FEMA Regulations, 2026 | Reg 5(1), as amended | Services must be paid 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. | Australian 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, one by one or in quarterly bulk. | Freelancers with smaller AUD 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 matching the service. Family maintenance from Indian non-residents has its own code, P1301. | 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 is capped at USD 2,500, one beneficiary can receive 30 a calendar year, and trade related remittances or credits to NRE accounts are not allowed. | Families receiving money from relatives in Australia |
| NRE and NRO accounts | Master Direction on Deposits and Accounts | Paras 4.1, 4.4, 6.1 and 6.7 | NRIs and PIOs may open NRE accounts, which accept inward remittances. Any person resident outside India may open an NRO account, which accepts inward remittances and legitimate dues in India. | NRIs in Australia sending money to their own Indian accounts |
Which option leaves the most rupees when AUD 500, AUD 2,000 or AUD 5,000 is sent from Australia 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 Australia?
A services export paid from Australia needs an LUT before invoicing, an EDF after invoicing, and a FIRC or bank record after the AUD is credited. GST is zero-rated under IGST section 16 when the five conditions in section 2(6) are met, including payment in convertible foreign exchange. A family remittance is not an export, so no EDF, LUT or export invoice applies. On the Australian side, the ATO sets GST at 10% and treats sales of imported services to Australian GST-registered businesses differently from sales to consumers. 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 AUD invoices go out without IGST | GST-registered exporters billing Australian 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 bank inward remittance record | The AD bank that credits the rupees | After the payment is credited; Rule 89(2)(c) asks for BRC or FIRC details in export of services refund claims | Freelancers and agencies paid by Australian clients |
| Purpose code | The AD bank reports it under FETERS | With each inward remittance; confirm the code with your bank | Classifying the AUD receipt correctly |
| KYC for MTSS account credits | The recipient bank, under the MTSS Master Direction | Before a direct-to-account MTSS credit; under para 8(ii), KYC non-compliant, NRE and NRO accounts are not credited | Families receiving personal remittances |
| Client ABN and GST statement | The Australian business client, per the ATO | When an Australian business customer says it is GST-registered | Indian suppliers checking whether Australian GST is their concern |
What changed in the rules for receiving money from Australia 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, and software exports are now declared in the EDF.
- Realisation: A 22 September 2026 amendment set nine months, or twelve months for rupee invoicing, in place of the fifteen and eighteen months first notified.
- Monthly EDF: Service exporters can file one EDF per month within 30 days of month end under Regulation 3(2). See the EDF guide.
- Faster credit: An RBI circular of 9 April 2026 asks banks to inform customers of inward payments on receipt and to try to credit them the same business day when received in forex market hours. It applies six months from the circular date.
- Income tax: The Income-tax Act, 2025 repealed the 1961 Act on 1 April 2026, with transitional provisions for pending matters.
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, Regulations 1(2), 3(2), 4(2), 5(1), 13 and 18(2) (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 (Export and Import of Goods and Services) (Amendment) Regulations, 2026, FEMA 23(R)/(1)/2026-RB (22 September 2026), Para 2 (amendment to regulation 5) (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 Master Direction: Deposits and Accounts, updated as on 2 September 2026, Paras 4.1, 4.3, 4.4, 6.1 and 6.7 (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 (purpose code reporting from April 2012) (checked 6 Oct 2026)
- RBI circular RBI/2026-27/08: Guidelines to facilitate faster cross-border inward payments (9 April 2026), Paras 3 and 4 (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)
- CGST Rules, 2017: Rule 89, Application for refund, Rule 89(2)(c) (checked 6 Oct 2026)
- Income Tax Department: Objective and scope of the new Act (Income-tax Act, 2025), FAQ 2 (checked 6 Oct 2026)
- Australian Taxation Office: How Australian GST works (non-resident businesses), GST rate; GST turnover; identifying GST-registered business customers (checked 6 Oct 2026)
- Australian Taxation Office: GST on imported services and digital products, How this applies; examples of imported services (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 an Australian client pay an Indian freelancer's AUD 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 bars 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 with a purpose code.
Can money from Australia sent through MTSS be credited to an NRE or NRO account in India?
No. Paragraph 3.4 of the MTSS Master Direction bars credits to NRE accounts, and the direct-to-account rules in paragraph 8(ii) require the partner bank to flag that MTSS money should not be credited to KYC non-compliant, NRE or NRO accounts. An NRI moving savings to an NRE account uses normal banking channels instead.
Who can receive an inward remittance from Australia into an NRE account under RBI rules?
Under paragraph 4.1 of the Master Direction on Deposits and Accounts, NRIs and PIOs may open NRE accounts, and paragraph 4.4 permits inward remittances to them. Under paragraph 4.3, a resident relative can only be a joint holder on a former or survivor basis. An NRO account can be opened by any person resident outside India, under paragraph 6.1.
Is there a limit on AUD family remittances to India under MTSS?
Yes. Paragraph 3.4 of the MTSS Master Direction caps each remittance at USD 2,500, so an AUD 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 AUD received in India from family in Australia?
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 the P1301 purpose code and confirm the final code with your bank before the money is credited.
Does GST apply when an Indian freelancer is paid in AUD by a client in Australia?
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 AUD. Exports are zero-rated under section 16, and with an LUT no IGST is charged on the invoice. See LUT filing.
How long does an Indian exporter have to receive an AUD 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 Australia 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. See what an inward remittance is and the comparison table on this page.