How Do You Receive International Payments in India as an Exporter?
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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Short answer
Exporters in India receive international payments through an authorised dealer (AD) bank, either by direct bank transfer or through an RBI-authorised cross-border payment aggregator. The money can arrive in foreign currency or, where permitted, in rupees. Services exporters file an EDF with the bank within 30 days of the invoice month. Payment must arrive within nine months of the invoice.
| Applies to | Governed by | Deadline | Penalty | Last verified |
|---|---|---|---|---|
| Any person resident in India who exports goods, services or software and is paid from abroad, including individual freelancers, consultants, agencies and companies | Foreign Exchange Management Act, 1999; FEMA (Manner of Receipt and Payment) Regulations, 2023; FEMA (Export and Import of Goods and Services) Regulations, 2026, in force from 1 October 2026; RBI (Regulation of Payment Aggregators) Directions, 2025; IGST Act, 2017 for GST treatment | EDF for services within 30 days from the end of the invoice month; full export value realised within 9 months of the invoice date (12 months if invoiced or settled in rupees), unless your AD bank extends it | Under FEMA section 13, up to three times the sum involved, or up to Rs 2 lakh where the amount cannot be quantified; unrealised exports can also restrict future exports to advance or letter of credit terms | 9 Oct 2026 |
What does receiving an international payment in India involve for an exporter?
Receiving an international payment in India means getting money from a person outside India through a channel that FEMA allows, and then completing the export records for that payment. Regulation 3(2) of the Manner of Receipt and Payment Regulations, 2023 says such receipts must go through an authorised bank or authorised person.
- Channel: The payment must reach you through an authorised bank or authorised person, in the manner RBI specifies (Regulation 3). A transfer into an informal account, or cash collected abroad on your behalf, does not meet this rule.
- Currency: For trade with countries outside the Asian Clearing Union, receipts can be in Indian rupees or any foreign currency. Trade with Nepal and Bhutan is generally settled in rupees (Regulation 3(2)(I)).
- Declaration: Every export is declared to a specified authority on an Export Declaration Form (EDF). For services the specified authority is usually your AD bank (Regulations 2(1)(f) and 3).
- Realisation: The full export value must be realised and repatriated to India within the period in Regulation 5, which is nine months from the invoice date for services.
- Reporting: Your AD bank enters the export and the inward remittance in EDPMS, closes the entry once paid, and reports the transaction with a purpose code in FETERS (Regulation 18).
The payment route you choose changes how fast money arrives and what it costs, but the FEMA duties on declaration, realisation and records stay the same.
Which Indian exporters must follow the rules for receiving international payments?
Every person resident in India who is paid from abroad for an export must follow the FEMA receipt rules, with no minimum size. The 2026 Regulations treat software as a service, so freelancers, agencies, software firms and goods exporters are all covered (Regulation 2).
| Exporter type | Applicable | Why | Best for |
|---|---|---|---|
| Individual freelancer or consultant | Yes | Services exported to a client abroad are exports under the 2026 Regulations; the AD bank is the specified authority for the EDF | Designers, writers, developers and consultants with foreign clients |
| Software or SaaS business | Yes | Software is included in services; the EDF goes to the AD bank or STPI in the domestic tariff area, or the SEZ Development Commissioner in an SEZ | IT exporters that earlier filed SOFTEX forms |
| Goods exporter | Yes | The EDF is filed at the time of export and is deemed part of the shipping bill at EDI ports (Regulation 3(1)) | Manufacturers, traders and e-commerce sellers shipping goods |
| Seller paid through a cross-border payment aggregator | Yes | The aggregator must give the documents your AD bank needs to close EDPMS entries (PA Directions, para 11(h)) | Online sellers and creators taking card or wallet payments from abroad |
| Person receiving a gift or personal remittance | No (export rules) | A gift is not an export, so EDF and realisation rules do not apply, though the bank still records a purpose code | Individuals receiving money from family abroad |
How does an Indian exporter receive an international payment step by step?
An Indian exporter receives an international payment by invoicing the client, giving bank or payment aggregator details, declaring the export on an EDF, and confirming the purpose of the remittance when it arrives. The steps below follow a typical services invoice from start to finish.
- Open or choose a current account with an AD Category-I bank that handles foreign exchange. Ask whether you also want an EEFC account to hold foreign currency.
- Raise an export invoice in foreign currency or, where your bank offers rupee settlement under Regulation 17, in Indian rupees. If you are GST-registered and export without paying IGST, file the LUT before the export.
- Give the client your bank's inward remittance instructions, or onboard with an RBI-authorised cross-border payment aggregator. You can check authorisation using the guide on RBI-authorised payment aggregators.
- File the EDF for services with your AD bank within 30 days from the end of the invoice month. One EDF can cover all services exported that month (Regulation 3(2)). See the EDF form guide.
- When the money arrives, confirm the purpose of the remittance with the bank so it can report the right FETERS purpose code, such as P0802 or P1006.
- Keep the bank's inward remittance advice. If you hold an IEC, you can generate an eBRC on the DGFT portal against the inward remittance.
- Check that the bank has closed the EDPMS entry. For invoices up to Rs 10 lakh, your own declaration is enough, individually or quarterly in bulk (Regulation 4(2)).
- Track every unpaid invoice against its nine-month realisation date, and ask the bank for an extension before the date passes (Regulation 5(1)).
How does a direct bank transfer from abroad reach an Indian exporter's account?
A direct bank transfer reaches the exporter through the AD bank in India, which receives the funds in its overseas account and then credits the exporter. The AD bank credits the account only after it is satisfied that the transaction is genuine (Regulation 4(2)).
- Under an RBI circular of 9 April 2026, banks must tell customers about an inward cross-border payment as soon as the message arrives, or at the start of the next business day if it arrives after hours (RBI/2026-27/08, para 3).
- The same circular asks banks to try to credit payments received during foreign exchange market hours on the same business day (para 3). These directions take effect six months from the circular date, which is 9 October 2026 (para 4).
- Banks may set up straight-through crediting for individual residents based on their risk assessment, subject to FEMA rules.
How does a cross-border payment aggregator (PA-CB) handle export receipts for Indian sellers?
A PA-CB collects payments from buyers abroad for sellers it has onboarded through e-commerce, then settles the money to the Indian seller through an AD bank. RBI regulates these entities under the Payment Aggregator Directions, 2025.
- The maximum value of each inward or outward transaction processed by a PA-CB is Rs 25 lakh (para 11(d)).
- Settlement in a currency other than rupees is allowed only for Indian exporters directly onboarded by the PA-CB (para 11(i)).
- The PA-CB must give your AD bank the documents needed to close your EDPMS entries (para 11(h)).
- A card payment where a card network settles the foreign exchange and the aggregator receives rupees is not PA-CB activity (para 4(i)(ii), note 2). See export payment by card.
How does an EEFC account work for receiving international payments in India?
An EEFC account lets a resident foreign exchange earner keep export earnings in foreign currency instead of converting them to rupees. RBI's EEFC FAQ says 100% of foreign exchange earnings can be credited to it.
- It is a current account in foreign currency, and no interest is paid on it (Q3).
- Accruals in a calendar month must be converted to rupees by the last day of the next month, after adjusting for approved uses or forward commitments (Q4).
- Professional earnings received in an individual capacity, such as consultancy fees, and advance remittances for exports are permitted credits (Q7). More detail is in what is an EEFC account.
What documents and records does each international payment route into India need?
Each international payment route into India needs an export invoice, an EDF where the export rules apply, a purpose code and a record of the inward remittance. The table shows what changes by route. Ask your AD bank for its own list, since each bank must publish its export policy and SOP (Regulation 19).
| Payment route | What you need | Main rule | Best for |
|---|---|---|---|
| Direct bank transfer in foreign currency | Invoice, EDF, purpose code confirmation, bank's inward remittance advice | Receipt through an authorised bank (MRP Regulation 3(2)) | Larger invoices and long-term clients who pay by wire |
| Cross-border payment aggregator | Merchant KYC with the aggregator, invoice, EDPMS documents passed to your AD bank | Up to Rs 25 lakh per transaction (PA Directions para 11) | Online sales, subscriptions and small invoices from many buyers |
| EEFC account | Same as a bank transfer; conversion of monthly accruals by the end of the next month | 100% of earnings may be credited (RBI EEFC FAQ Q4) | Exporters with foreign currency costs or who want to choose when to convert |
| Invoicing or settlement in rupees | Invoice in rupees, bank that offers the rupee settlement arrangement | 12-month realisation period (Regulation 5(1) proviso) | Trade with buyers whose banks hold rupee vostro accounts; see export invoicing in INR |
| Advance payment before export | Advance routed through the same AD bank as later realisation, unless both banks are told | Same-bank routing (Regulation 10(1)) | Clients who pay before work starts; see advance payment rules |
| Payment from a third party | Bank's approval after checking the transaction is genuine | AD bank discretion (Regulation 8) | Clients who pay through a group company or agent; see third party payments |
What happens if an Indian exporter receives an international payment the wrong way or too late?
An exporter who receives payment outside an authorised channel, or does not realise it in time, contravenes FEMA and can face a penalty. Late or missing realisation also affects GST under an LUT and can restrict future exports.
- FEMA penalty: A contravention can lead to a penalty of up to three times the sum involved, or up to Rs 2 lakh where it cannot be quantified, plus up to Rs 5,000 a day for a continuing contravention (FEMA section 13(1)).
- Future exports: If proceeds stay unrealised for more than one year after the due or extended date, further exports are allowed only against full advance or an irrevocable letter of credit (Regulation 13).
- GST: Under an LUT, if a services payment is not received within one year or the FEMA period with extension, whichever is later, IGST with interest is payable within 15 days (Rule 96A(1)(b)).
- Export status: A service counts as an export for GST only if payment is received in convertible foreign exchange or in rupees where RBI permits (IGST Act section 2(6)(iv)). See GST on export of services.
- Open entries: Unclosed EDPMS entries stay on your record until the bank marks them off after realisation (Regulation 18(1)(g)).
If a payment is delayed, ask your AD bank for an extension of the realisation period before it ends (Regulation 5(1)). If the client will pay less, the bank can allow a reduction, and for invoices up to Rs 10 lakh your declaration is enough (Regulation 6). See extension of the export realisation period.
What is the timeline for receiving an international payment for an export of services?
The timeline for receiving an international payment for services starts on the invoice date. The EDF is due within 30 days from the end of the invoice month, and the payment is due within nine months of the invoice, or twelve months if invoiced or settled in rupees.
| Trigger event | Due date | Filed where | Best for |
|---|---|---|---|
| Start of financial year, before first zero-rated export | LUT in Form GST RFD-11 before export (Rule 96A(1)) | GST portal | GST-registered exporters; see LUT filing |
| Services invoice raised | EDF within 30 days from the end of the invoice month; services other than software may file on or before the payment date (Regulation 3(2)) | AD bank (or STPI or SEZ for software) | All service exporters |
| EDF received by the bank | Entered in EDPMS within five working days (Regulation 18(1)(b)) | Your AD bank does this | Checking your record in EDPMS |
| Inward payment message received by the bank | Customer informed immediately, or at the start of the next business day (RBI/2026-27/08) | Your AD bank does this | Exporters waiting for a credit |
| Invoice date | Full value realised within nine months, or twelve if invoiced or settled in rupees (Regulation 5(1)) | AD bank account | All exporters; see export realisation period |
| Realisation due date passes | Ask for an extension before it passes; after one more year unpaid, future exports need advance or letter of credit (Regulation 13) | AD bank | Exporters with slow-paying clients |
What mistakes do Indian exporters make when receiving international payments?
- Wrong purpose code: Letting the bank report a personal or gift code for client payments. The purpose code tells the bank the money is an export, so confirm it each time (Circular No. 84). See purpose code for freelancers.
- Missed EDF: Assuming the EDF is only for goods. From 1 October 2026 exporters of services, including software, file an EDF with the specified authority, and the SOFTEX circulars are superseded.
- Old deadlines: Relying on the fifteen-month period in the original 2026 text. The 22 September 2026 amendment set nine months, as shown in the footnotes to Regulation 5.
- Split banks: Taking an advance through one bank and the balance through another without telling both banks (Regulation 10(1)).
- Unauthorised channels: Using an aggregator without checking that it is authorised by RBI or is a bank, since a non-bank needs authorisation to act as a payment aggregator (PA Directions para 5).
- EEFC balances: Leaving EEFC accruals unconverted past the end of the following month without an approved use (RBI EEFC FAQ Q4).
How did we verify this?
Every rule, deadline and form on this page is linked to its official source, checked on the dates below.
- Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification No. FEMA 23(R)/2026-RB (amended up to 22 September 2026), Regulations 1(2), 2, 3, 4(2), 5(1), 6, 8, 10(1), 13, 17, 18, 19 and footnotes 2 to 4 (checked 9 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20, RBI/2025-26/194, 16 January 2026: Export and Import of Goods and Services, Paras 1, 4 and 7; Annex list of superseded circulars (checked 9 Oct 2026)
- Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023, Notification No. FEMA 14(R)/2023-RB (amended up to 12 February 2025), Regulation 3(1) and 3(2)(I) (checked 9 Oct 2026)
- RBI Master Direction on Regulation of Payment Aggregator (PA), RBI/DPSS/2025-26/141, 15 September 2025, Paras 4(i)(ii), 5, 11(d), 11(h), 11(i), 13(b) (checked 9 Oct 2026)
- RBI circular RBI/2026-27/08, 9 April 2026: Guidelines to facilitate faster cross-border inward payments, Paras 3 and 4 (checked 9 Oct 2026)
- RBI FAQ: Exchange Earners Foreign Currency (EEFC) Account (updated as on 5 July 2016), Q1 to Q4 and Q7 (checked 9 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 84, RBI/2011-12/413: Compilation of R-Returns, Reporting under FETERS, Para 3: purpose codes for all foreign exchange transactions (checked 9 Oct 2026)
- Integrated Goods and Services Tax Act, 2017, section 2 (CBIC tax information portal), Section 2(6) export of services (checked 9 Oct 2026)
- Central Goods and Services Tax Rules, 2017, Rule 96A (CBIC tax information portal), Rule 96A(1) and (1)(b) (checked 9 Oct 2026)
- DGFT Public eBRC FAQs (Self-Generation of eBRC), Version 1.0, March 2024, Q1, Q2 and Q10 (checked 9 Oct 2026)
- Foreign Exchange Management Act, 1999 (text hosted by IFSCA), Section 13(1) (checked 9 Oct 2026)
Frequently asked questions
Can a freelancer in India receive international payments into a savings account?
Whether a freelancer in India can receive international payments into a savings account depends on the AD bank's own account rules, so check with your bank before sharing account details. The FEMA export rules, including the EDF and the nine-month realisation period, apply whichever account type is used. See export payment in a savings account.
Is an IEC needed to receive payment for an export of services in India?
The 2026 FEMA export regulations do not make an IEC a condition for receiving payment for services. However, DGFT's eBRC FAQ says a user must link or apply for an IEC before generating an eBRC on the DGFT portal. Check with your AD bank whether it asks for an IEC for your account type.
Which purpose code applies to software development payments received in India?
Software development payments are often reported under P0802, described in RBI's FETERS list as "Software consultancy/implementation (other than those covered in SOFTEX form)". Off-site software exports use P0807, "Off site software exports". Confirm the code with your AD bank. See the P0802 purpose code page.
Can an exporter receive the FEMA export value in Indian rupees instead of foreign currency?
Yes, an exporter can receive payment in Indian rupees when the export is invoiced or settled in rupees under RBI's framework, which the 2026 Regulations refer to in Regulation 17. The realisation period is then twelve months instead of nine. For GST, rupee receipts count only where RBI permits them.
What is the PA-CB per-transaction limit for export receipts in India?
The PA-CB per-transaction limit for export receipts is Rs 25 lakh, set by paragraph 11(d) of RBI's Payment Aggregator Directions, 2025. This applies to each inward or outward transaction processed by a cross-border payment aggregator. Larger invoices are usually received by direct bank transfer through an AD bank. See PA-CB transaction limit.
How quickly must an AD bank credit an inward remittance to an exporter's account?
Under RBI circular RBI/2026-27/08, an AD bank should try to credit inward remittances received during foreign exchange market hours on the same business day, and those received later on the next business day. The bank must inform the customer on receipt. The directions take effect six months after 9 April 2026.
Does the EDPMS entry close automatically when an exporter's AD bank receives the money?
The EDPMS entry closes when the AD bank marks it off after confirming realisation, which it does when crediting the payment. For invoices up to Rs 10 lakh, the bank can close the entry on the exporter's declaration, filed per invoice or quarterly in bulk, under Regulation 4(2). See EDPMS closure.