Key takeaways
Your international payment setup should align the receiving channel, RBI purpose code, and supporting documents with the nature of your export transaction.
SaaS exports can qualify as zero-rated supplies under Section 16 of the IGST Act if all prescribed export conditions under the IGST Act are satisfied.
Using an AD Category-I bank remains central to foreign-exchange compliance, including receipt of export proceeds, documentation, reporting and e-FIRC issuance.
From 1 October 2026, the new FEMA framework provides a standard 15-month period for realisation of export proceeds, with specific provisions for INR-denominated settlements and advance receipts.
You should compare settlement timelines, inward-remittance fees, forex conversion costs, payment methods and reporting support before selecting a bank, PA-CB or other permitted payment channel.
Three things determine whether your international payment lands cleanly or triggers compliance problems: the bank account it flows through, the purpose code attached to it, and the documentation your AD bank receives. The Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (opens in a new tab), notified on 13 January 2026, replaced the entire 2015 framework. If you have not reviewed your payment setup since then, now is the right time.
What are the options for receiving international payments in India?
Indian businesses can generally receive international payments through bank-to-bank transfers via an AD Category-I bank, Payment Aggregator-Cross Border (PA-CB) arrangements, and eligible foreign-currency account structures. For certain transactions, businesses can also use other permitted mechanisms under FEMA, including settlement through Special Rupee Vostro Accounts.
The RBI's Master Direction – Export of Goods and Services (FED Master Direction No. 16/2015-16), updated on 17 July 2026, sets out key rules on receiving and repatriating export proceeds, foreign-currency accounts, INR settlement and reporting.
For online cross-border payments, the RBI's Payment Aggregator-Cross Border (PA-CB) framework is now the relevant regulatory framework. PA-CBs facilitate online cross-border payments and, for exports, operate through Export Collection Accounts maintained with AD Category-I scheduled commercial banks.
The right choice depends on your business type, transaction size, and whether your clients pay by card, bank transfer, or local payment methods.
How do I collect payments from global users for my Indian SaaS product?
SaaS exports qualify as zero-rated supplies under Section 16 of the IGST Act, 2017, provided five conditions are met: the provider is in India, the recipient is outside India, payment is received in foreign exchange or RBI-permitted INR, the parties are not related, and the place of supply is outside India, per Section 2(6) of the IGST Act.
For GST treatment, you have two routes. The simpler option is to file a Letter of Undertaking (LUT) once before the financial year begins. LUT-filing steps on the GST portal are:
Log in and go to Services → User Services → Furnish LUT
Select the financial year
Sign using DSC or EVC
Save the acknowledgement
With an LUT in place, you raise zero-rated invoices without paying IGST upfront and claim input tax credit as a refund. The alternative is paying IGST on each invoice and claiming a refund afterwards, which ties up working capital.
For purpose codes, software implementation and consultancy receipts map to RBI FETERS code P0802; business and management consultancy maps to P1006. Using the correct code at the time of inward remittance prevents your AD bank from flagging the transaction.
Quick Fact: India's services exports reached an all-time high of USD 387.6 billion in FY25, growing 13.6% year-on-year. This growing services-export economy means more Indian freelancers, SaaS companies and service businesses are receiving payments from overseas customers, making the choice of an efficient, compliant international payment channel increasingly important.
What is the best way to accept international payments?
For most exporters, the choice comes down to settlement speed, payment method and the total cost of receiving funds. A PA-CB licensed payment aggregator can settle funds in two to three business days, while SWIFT transfers through an AD bank typically take two to five business days. Bank charges typically include an inward remittance processing fee plus a forex markup on conversion.
The table below compares the primary channels and the factors that affect your net receipt.
Channel | Typical settlement time | Forex markup range | Best suited for |
|---|---|---|---|
SWIFT via AD bank | 2-5 business days | 1.5-3.5% | Large single payments |
PA-CB aggregator | 2-3 business days | Varies by provider | Cards, recurring, multi-currency |
OPGSP | 3-5 business days | Varies | Marketplace and platform sellers |
IFSC foreign currency account | Same or next day (internal) | 0% until conversion | Businesses with GIFT City presence |
Keep forex markup in focus: on a ₹10,00,000 receipt, a 3.5% markup costs ₹35,000 compared to ₹17,500 at 1.75%.
How do I receive international payments in India as a freelancer or agency?
Freelancers and agencies need three things in place before the first payment arrives: an active current account with an AD Category-I bank, the correct RBI purpose code communicated to the client's bank, and a system to request your e-FIRC (electronic Foreign Inward Remittance Certificate) after each receipt.
Since 2016, the RBI no longer issues physical FIRC certificates. Your AD bank generates an e-FIRC, reported directly to the RBI; a Foreign Inward Remittance Advice (FIRA) serves as the lighter credit confirmation you receive immediately. The e-FIRC is what your CA needs for GST refund claims and export-benefit purposes.
Under A.P. (DIR Series) Circular No. 12, dated 1 October 2025, AD Category-I banks can now close export entries of ₹10,00,000 or less on the exporter's self-declaration, with no penal charges on those entries. This is significant relief for freelancers whose client payments occasionally fall short of the invoiced amount.
Retain all records, including contracts, invoices, bank statements, and e-FIRA, for at least five years under FEMA requirements.
What is the AD Category-I bank requirement for receiving foreign payments?
An AD Category-I bank is a scheduled commercial bank authorised by RBI under FEMA to handle the full range of foreign exchange transactions. As of 18 November 2025, RBI recognises 91 such banks in India.
Your AD bank is not just where the money lands. It verifies export documents, credits proceeds, issues e-FIRC, monitors outstanding bills, and reports to RBI on your behalf. You cannot bypass it by receiving payments directly to a personal account or through an unauthorised channel.
Key regulatory changes in 2025-2026 you need to know
Three updates from the past eight months affect every exporter directly. The following list covers each change and what it means for your payment setup:
15-month realisation window: The Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, will officially come into effect on 1 October 2026. Under the upcoming October 2026 framework, the standard export realisation window permanently extends to 15 months (and up to 18 months for INR-denominated settlements). Advance receipts can also be held or refunded within 3 years without needing RBI approval.
IFSC account retention extended: Under Notification No. FEMA 10(R)(7)/2025-RB, dated 6 October 2025, exporters can retain foreign currency proceeds in IFSC-located accounts for up to 3 months (up from 1 month). Non-IFSC accounts retain the 1-month limit.
2026 FEMA framework: The 2026 Regulations replaced the earlier 2015 framework, with AD banks receiving greater authority to grant timeline extensions.
How Jio Payment Solutions helps
Jio Payment Solutions holds an RBI PA-CB (Payment Aggregator, Cross-Border) license, granted on 12 March 2026, making it one of approximately 19 entities in India authorised to process cross-border payments.
For freelancers and agencies, the most relevant features address the three recurring pain points covered in this guide. Settlement reaches your Indian bank account in T+2 days, while the service generates an automated eFIRA for each transaction. Bank transfer pricing is designed around a transparent fee with no additional forex markup, which can reduce the cost of receiving a ₹10,00,000 payment compared with a bank channel charging a 3.5% forex markup.
For SaaS exporters, Jio Payment Solutions supports 50-plus local payment methods across 100-plus countries, with built-in FEMA reporting and purpose code handling designed to support compliance as of June 2026.
Getting started with international payments
Once your basic compliance setup is ready, focus on choosing the payment channel that offers the right balance of speed, payment methods and total cost. Confirm your current account is active for export operations, file your GST LUT before your next invoice if you have not done so for FY2026-27, and check that your service has been assigned the appropriate RBI FETERS purpose code.