Can my client's parent company pay my export invoice?

Many foreign clients pay from a central treasury: a UK brand's invoices are settled by its US parent, or a start-up's bills are paid by its holding company in Singapore. Under the rules in force from 1 October 2026, this is a third-party payment, and your bank decides whether to accept it.¹

What does the rule say?

Regulation 8 of the FEMA (Export and Import of Goods and Services) Regulations, 2026 (the 2026 Regulations) lets an Authorised Dealer (AD) bank permit third-party receipts and payments, that is, by someone other than the parties undertaking the export and import, if it is satisfied with the bona fides of the transaction.¹ The detailed conditions in the old RBI Master Direction no longer apply, because Circular No. 20 superseded it from 1 October 2026.³

What evidence should you give the bank?

The 2026 Regulations do not list documents, so your bank's procedure decides; in practice it will want to see why the third party is paying.¹ Useful items:

1. The invoice, addressed to your actual client.
2. Proof of the relationship, such as the client's website or annual report naming the parent, or a group chart.
3. A note or email from the client asking the parent to pay, or confirming that it has.
4. The remittance details, showing the payer's name and the invoice number in the payment reference.

Example: a marketing consultant in Kochi invoices a Dublin subsidiary; the payment comes from the group's head office in Boston. The consultant sends the bank the invoice, the client's email naming the Boston entity as payer, and the remittance advice. That is usually enough to show the payment is genuine.¹

Does a third-party payment change your deadline?

No. You still need the full invoice value in India within nine months from the invoice date, or twelve if invoiced or settled in rupees.¹² If the parent pays late, ask your bank for an extension under regulation 5.¹

Is a payment platform a "third party"?

Regulation 8 does not mention payment platforms or aggregators.¹ A payment made by your client through a platform is different from a payment by another company, but ask your bank or provider how such receipts are treated. For the wider rules, see third-party payment for exports.

Confirm your bank's document list before the first such payment arrives, and check unusual payer arrangements with a chartered accountant.