What Is an RBI Purpose Code?

A purpose code is a short code, a letter followed by four digits, that the RBI list gives to each kind of foreign exchange transaction. Banks use it to say why money came in or went out. The RBI guidelines for FETERS say banks report the purpose, country, currency and other details of such transactions to the Reserve Bank, mainly to compile India's balance of payments statistics. For an exporter, the code is chosen from the list according to what was sold. Software services, consulting, advertising and goods all have different codes.

For example, a designer in Pune bills a client in France for brand design work. The designer checks the RBI list, picks the code that matches that service, and gives it to the AD bank with the remittance details.

• Bank compliance: AD banks must report the purpose of each foreign exchange transaction in FETERS (RBI FETERS guidelines). A wrong code gives the bank wrong data to report.
• Payment documents: The purpose code appears on bank records of the inward remittance, so it should agree with the invoice description. Ask your bank which documents carry it.
• GST: GST treatment of an export of services depends on the conditions in IGST law, not on the code. A consistent code and invoice make it easier to show what was supplied.
• Income tax: The code is a reporting label and does not decide tax. Income tax treatment depends on the nature of the income, so ask a tax adviser.

Purpose codes work as a fixed list that every AD bank uses. The bank picks or confirms one code for each transaction and reports it to RBI.

1. RBI publishes the list of purpose codes with a description for each.
2. The exporter issues an invoice that describes the service or goods clearly.
3. The remitter or the exporter gives the purpose to the bank when the money is sent or credited.
4. The AD bank maps the transaction to the closest code on the list.
5. The bank reports the transaction to RBI in FETERS (RBI FETERS guidelines).
6. The code appears in the bank's records for the remittance.

Use the code whose official description matches what you sold. Check the description on the RBI list, not a summary from another website. Confirm the choice with your AD bank, which reports it.

1. Write down what the invoice is for, such as software development, consulting or advertising.
2. Open the RBI purpose code list and find the description that matches.
3. Check the codes in the same group, as nearby codes cover similar services.
4. Give the code to the client, or to your AD bank, when payment details are shared.
5. Use the same code for the same type of work unless the work changes.
6. If a bank asks to change a code, ask for the reason and keep the reply on file.

• Free choice: The code is not a tag to pick freely. It should match the real nature of the transaction.
• Tax setting: A code does not set the GST or income tax position of the receipt.
• One code: Different invoices can need different codes if the work differs.
• Old list: Only the current list should be used. The FETERS list revised from 1 April 2012 is the one linked here.

• P0802: Software consultancy/implementation (other than those covered in SOFTEX form), as worded on the RBI list.
• P0807: Off-site Software Exports, as worded on the RBI list.
• Purpose code for freelancers: How freelancers choose among the codes.
• FIRA: A bank advice confirming a foreign payment was credited.
• Inward remittance: Foreign currency received into India.

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

1. RBI: Guidelines for Submission of Data, FETERS, with purpose code list (A.P. (DIR Series) Circular No. 84, 29 February 2012), Opening guidelines; Annex I purpose codes (checked 9 Oct 2026)