What Is an Inward Remittance?

An inward remittance is any payment that comes into India from abroad. For an exporter it usually means the buyer's payment for an invoice. The buyer's bank sends the money, often through SWIFT and correspondent banks, to your AD bank. Your bank credits your account, converts it to rupees if it is not an EEFC account, and records the receipt. It may ask for the invoice or purpose details, because it has to report the transaction using a purpose code and match it with your export record. Keep the invoice number in the payment reference so matching is simple.

For example, a content writer in Pune invoices a UK client GBP 500. The client sends GBP 500 from a UK bank. The Indian AD bank credits the rupee equivalent and issues an advice showing the amount and rate. These figures are hypothetical.

• Bank compliance: Under Regulation 4(2) of the Export and Import Regulations, 2026, the AD bank closes or updates the EDPMS entry once the export value is realised, so the remittance must be matched to an export.
• Realisation period: Regulation 5 sets the period within which export value must be realised, so delayed or returned remittances matter.
• Reporting: Banks report inward remittances under FETERS using purpose codes, as set out in A.P. (DIR Series) Circular No. 84. The code on your remittance should match the nature of the receipt.
• GST: Ask your tax adviser which bank documents your officer accepts when you claim a GST refund on an export of services. The remittance advice is a common supporting record.

An inward remittance works as a chain from the overseas buyer's bank to your AD bank. Your bank then credits you and records the transaction for FEMA reporting.

1. The buyer instructs their bank to send the payment, with your bank details and a payment reference.
2. The money moves through the buyer's bank and any intermediary banks to your AD bank.
3. Your AD bank tells you about the payment. Under RBI's faster cross-border inward payments guidelines, banks inform customers immediately and try to credit funds received during forex market hours on the same business day, subject to FEMA.
4. The bank may ask for an invoice or purpose details before crediting or reporting.
5. The bank reports the transaction under FETERS with a purpose code.
6. The bank links the receipt to your export entry and closes or updates it under Regulation 4(2).

You receive an inward remittance by giving the payer correct bank details, quoting the invoice in the reference, and responding promptly to your AD bank's questions. Preparing documents in advance reduces delays.

1. Share your account name, account number, bank name, SWIFT or BIC code and the invoice number with the payer. See SWIFT code.
2. Ask the payer to put the invoice number and purpose in the payment reference.
3. Keep the invoice and contract ready, because the bank may request them. See what to send when the bank asks.
4. Confirm the purpose code with your bank. See RBI purpose code.
5. Collect the credit advice or FIRA after the credit. See FIRA.
6. If the payment is returned or delayed, ask your bank for the reason. See why inward remittances are returned.

• Instant credit: RBI's guidelines ask banks to try for same-day credit during forex market hours, subject to FEMA. Credit time still depends on the bank and the payment route.
• Only exports: Inward remittance covers any inflow of foreign exchange, not only export payments. The purpose determines the reporting.
• No paperwork: Banks can ask for an invoice or purpose details, so keep documents ready.
• Exact amount: Intermediary bank charges and the conversion rate can make the credited amount lower than the invoice.

• FIRA: A bank advice confirming a foreign payment was credited.
• FIRC: A certificate issued by a bank for a foreign inward remittance.
• RBI purpose code: A code that classifies the purpose of a foreign exchange transaction.
• Advance remittance: A payment received before the export is completed.
• SWIFT MT103: The message used to send a single customer credit transfer.

Every rule and definition on this page is linked to its official source, checked on the dates below.

1. Reserve Bank of India (Regulation of Payment Aggregators) Directions, 2025, Master Direction RBI/DPSS/2025-26/141, Paragraph 4 (definition of inward transaction) (checked 9 Oct 2026)
2. Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification FEMA 23(R)/2026-RB, amended up to 22 September 2026, Regulations 4(2) and 5 (checked 9 Oct 2026)
3. RBI circular RBI/2026-27/08: Guidelines to facilitate faster cross-border inward payments, 9 April 2026, Paragraphs 3 and 4 (checked 9 Oct 2026)
4. RBI A.P. (DIR Series) Circular No. 84, RBI/2011-12/413: Compilation of R-Returns: Reporting under FETERS, 29 February 2012, Paragraph 3 (checked 9 Oct 2026)