Wise or Western Union: What RBI's Inward Remittance Rules Mean for Money from Singapore
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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Short answer
Wise and Western Union both move money from Singapore to India in 2026. SGD client fees for services 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 through MTSS are capped at USD 2,500 each.
| Applies to | Rules involved | Platforms compared | Last verified |
|---|---|---|---|
| Indian freelancers, agencies and companies paid in SGD or another currency by clients in Singapore, and individuals in India receiving personal remittances from family working in Singapore. | 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, and CGST Rule 96A | Skydo, Razorpay, Wise Business, Western Union | 6 Oct 2026 |
How do Wise and Western Union compare for receiving money from Singapore 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 | ₹4,70,317 | 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 | ₹4,67,971 | 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 | ₹4,64,566 | 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 Singapore?
The RBI rule depends on what the money from Singapore is for. A Singapore 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 working in Singapore 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 Singapore startup SGD 3,000 follows the export rules, while SGD 400 sent by a son in Singapore for household costs is a personal transfer. See how to receive money from Singapore.
| 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) | Singapore is not an Asian Clearing Union member (2016 list), so receipts from Singapore can be in INR or any foreign currency, including SGD, through an authorised bank or authorised person. | Anyone checking that an SGD receipt is permitted |
| Export Declaration Form | FEMA Regulations, 2026 | Reg 3(2) | An exporter of services files an EDF for the export value within 30 days from the end of the month in which the invoice was raised. | Freelancers and agencies invoicing Singapore clients |
| Realisation period | FEMA Regulations, 2026; amendment of 22 September 2026 | Reg 5(1) | The 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. | Singapore clients on long payment terms |
| EDPMS closure | FEMA Regulations, 2026 | Reg 4(2), first proviso | For invoices up to Rs 10 lakh or its foreign currency equivalent, the AD bank can close the EDPMS entry on the exporter's declaration. | Freelancers with smaller SGD 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. In the transfers group, P1301 covers inward remittances from Indian non-residents towards family maintenance and savings. | 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 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 Singapore |
| UPI-PayNow linkage | RBI FAQs on UPI-PayNow | Questions 7 and 8 | The FAQs, dated 21 February 2023, allow only person to person remittances for maintenance of relatives and gifts, with a daily limit of Rs 60,000. Check the current limit with your bank. | Families sending small amounts from Singapore by mobile app |
Which option leaves the most rupees when SGD 500, SGD 2,000 or SGD 5,000 is sent from Singapore 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 | ₹1,800 | ₹0 | ₹324 | ₹45,232 | 4.48% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $2,000 | ₹1,800 | ₹0 | ₹324 | ₹1,87,300 | 1.12% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Skydo, $5,000 | ₹2,747 | ₹0 | ₹494 | ₹4,70,317 | 0.68% | Indian freelancers and exporters receiving mid to large B2B invoices |
| Razorpay, $500 | ₹1,000 | ₹0 | ₹180 | ₹46,176 | 2.49% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $2,000 | ₹1,894 | ₹0 | ₹341 | ₹1,87,188 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Razorpay, $5,000 | ₹4,736 | ₹0 | ₹852 | ₹4,67,971 | 1.18% | Indian businesses and freelancers on Razorpay invoicing foreign clients |
| Wise Business, $500 | ₹929 | ₹0 | ₹167 | ₹46,259 | 2.32% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $2,000 | ₹3,160 | ₹0 | ₹569 | ₹1,85,695 | 1.97% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
| Wise Business, $5,000 | ₹7,621 | ₹0 | ₹1,372 | ₹4,64,566 | 1.90% | Freelancers and small exporters wanting multi-currency local accounts and eFIRC |
For example, on a $2,000 invoice Skydo pays about ₹1,87,300 and Wise Business about ₹1,85,695 at today's reference rate, a difference of ₹1,605.
What documents and GST apply to payments received in India from Singapore?
A services export paid from Singapore needs an LUT before invoicing if IGST is not paid, an EDF after invoicing, and a FIRC or FIRA after the SGD 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 or in INR where RBI permits. 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 furnishes it to the jurisdictional Commissioner under CGST Rule 96A | Before export, so SGD invoices go out without IGST | GST-registered exporters billing Singapore 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 Singapore clients |
| Purpose code | The AD bank reports it under FETERS | With each inward remittance; confirm the code with your bank | Classifying the SGD receipt correctly |
| KYC for MTSS credits | The recipient bank, under the MTSS Master Direction | Before a direct-to-account MTSS credit; the account must be KYC compliant | Families receiving personal remittances |
What changed in the rules for receiving money from Singapore 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 Directions on Export and Import 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 govern export receipts from 1 October 2026, and Circular No. 20 supersedes the earlier SOFTEX circulars.
- 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.
- 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.
- Faster credit: An RBI circular of 9 April 2026 asks banks to endeavour to credit inward payments received in forex market hours on the same business day. It takes effect six months from the circular date.
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, Regulations 1(2), 3(2), 4(2), 5(1), 18(2) (checked 6 Oct 2026)
- RBI: FEMA (Export and Import of Goods and Services) (Amendment) Regulations, 2026, Notification FEMA 23(R)/(1)/2026-RB (22 September 2026), Amendment to regulation 5 (checked 6 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20 dated 16 January 2026 (RBI/2025-26/194): Export and Import of Goods and Services, Supersession of Master Directions and Annex circulars from 1 October 2026 (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: FEMA (Manner of Receipt and Payment) Regulations, 2016 (superseded; cited for its list of ACU members), Regulation 3, Members of the Asian Clearing Union (checked 6 Oct 2026)
- RBI Master Direction: Money Transfer Service Scheme (MTSS), updated as on 29 September 2026, Paras 1.1 and 3.4 (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)
- RBI press release: Prime Ministers of India and Singapore launch real-time payment systems linkage (21 February 2023), Paras 1 to 4 (checked 6 Oct 2026)
- RBI FAQs: UPI-PayNow Linkage (21 February 2023), Questions 7 and 8 (checked 6 Oct 2026)
- RBI circular: 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-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)
- IRAS: Payments to non-resident company that are subject to withholding tax, Services provided via electronic means from overseas are rendered outside Singapore (checked 6 Oct 2026)
- MAS: Payment Services Act 2019, Overview of the regulatory framework for payment service providers (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 Singapore client pay an Indian freelancer's SGD 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.
What are the RBI permitted methods to receive an inward remittance from Singapore into an Indian bank account?
Under the Manner of Receipt and Payment Regulations, a receipt from a non-ACU country such as Singapore 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 SGD 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 an SGD 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.
Can UPI-PayNow be used to receive client fees from Singapore in India?
RBI's UPI-PayNow FAQs say only person to person remittances for maintenance of relatives abroad and gifts are allowed, so client fees for services do not fit. The linkage was launched on 21 February 2023 between UPI and Singapore's PayNow. Business receipts follow the export rules instead. See receiving SGD payments.
Which purpose code applies to SGD received in India from family in Singapore?
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.
Does a Singapore client withhold Singapore tax on fees paid to an Indian freelancer working remotely?
IRAS guidance on payments to non-resident companies says that services provided by electronic means from overseas, without staff sent to Singapore, are rendered outside Singapore, so withholding tax is not applicable. Withholding may apply to work performed in Singapore. Payment service providers in Singapore are regulated under the Payment Services Act 2019.
Does GST apply when an Indian freelancer is paid in SGD by a client in Singapore?
The service is an export under IGST section 2(6) when the recipient and place of supply are outside India and payment arrives in convertible foreign exchange such as SGD. Exports are zero-rated under section 16. With an LUT, no IGST is charged on the invoice. See LUT filing.
Do Wise and Western Union transfers from Singapore 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, with nine months to realise under Regulation 5. 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.