What is an RBI purpose code?
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Short answer
An RBI purpose code is a code from RBI's list for classification and reporting of foreign exchange transactions.1 AD Category-I banks use it to report every foreign exchange transaction under FETERS, from 1 April 2012.1 Receipt codes are five characters, "P" followed by four digits.12 For example, P0802 is software consultancy and implementation.2
| Full form | Governed by | Who needs it | Where it is used | Related terms |
|---|---|---|---|---|
| Purpose code for reporting foreign exchange transactions | RBI A.P. (DIR Series) Circular No. 84 of 29 February 2012 (FETERS)1 | Every exporter receiving foreign exchange through a bank | Bank credit advices, FIRAs, IRMs and e-BRCs4 | Inward remittance, FIRA, e-BRC, SAC code, FETERS |
Every time money crosses India's border through a bank, the bank must report why. A US client paying a Chennai developer, a UK agency paying a Delhi illustrator and a family sending savings home all look alike as dollars or pounds, and the purpose code is what tells them apart in RBI's records.1
What does an RBI purpose code mean in simple words?
An RBI purpose code is a short label that tells your bank, RBI and DGFT why foreign money came in. RBI's Circular No. 84 of 29 February 2012 told AD Category-I banks to report all foreign exchange transactions under the Foreign Exchange Transactions Electronic Reporting System (FETERS) using the revised purpose code list, for transactions from 1 April 2012.1
- Format: receipt codes begin with "P", followed by a two-digit group and a two-digit item.12
- Example: P1006 is business and management consultancy and public relations services.2
For example, a management consultant paid by a London client would expect P1006 on the bank advice.2
Why does an RBI purpose code matter for Indian exporters and freelancers?
An RBI purpose code matters because it tells the bank and DGFT that a receipt is payment for an exported service, and which kind.13
- Bank compliance: the code flows into the bank's record of the inward remittance.4
- e-BRC: DGFT uses that record for the electronic Bank Realisation Certificate (e-BRC).4
- GST: DGFT maps purpose codes to GST service accounting codes (SAC).3
A code for family maintenance and savings (P1301) on a client payment can raise questions about whether the receipt is an export.2
How does an RBI purpose code work?
An RBI purpose code works as a group-and-item label: the group says the broad type of service, and the item narrows it down.12 Service exporters commonly use groups P08 (telecommunication, computer and information services), P10 (other business services) and P11 (personal, cultural and recreational services). Descriptions below are as in the RBI list:2
| Code | Description | Best for |
|---|---|---|
| P0802 | Software consultancy/implementation (other than those covered in SOFTEX form) | IT consultant |
| P0807 | Off-site Software Exports | Software development firm |
| P0803 | Data base, data processing charges | Data entry or analytics service |
| P1004 | Legal services | Lawyer advising a foreign client |
| P1005 | Accounting, auditing, book keeping services | Bookkeeper |
| P1006 | Business and management consultancy and public relations services | Management consultant |
| P1007 | Advertising, trade fair service | Digital marketing agency |
| P1009 | Architectural services | Architect |
| P1014 | Engineering Services | CAD or engineering design firm |
| P1101 | Audio-visual and related services like Motion picture and video tape production, distribution and projection services. | Video editor |
The "Best for" column is illustrative. Pick the code that matches the contract, not the one that looks closest to your job title.
How do you find and check your RBI purpose code?
You find the code on the bank's credit advice or Foreign Inward Remittance Advice (FIRA), in the bank's inward remittance message to DGFT, and on any e-BRC you generate from it.4
- Before payment: payment platforms usually ask you to declare the code when you set up payouts.
- After payment: check the code on the advice and the DGFT portal.4
- Finding a code: match your service to a code with the purpose code finder.
Corrections go through the bank that credited the payment.4
What is the difference between an RBI purpose code and a SAC code?
An RBI purpose code classifies a foreign exchange transaction for bank reporting, while a SAC code classifies a service for GST. DGFT publishes a mapping between the two.13
| Code | Used for | Best for |
|---|---|---|
| RBI purpose code | Reporting why foreign exchange came in, under FETERS | Bank advices, FIRAs and e-BRCs |
| SAC code | Classifying a service for GST | Tax invoices and GST returns |
The mapping is in DGFT's Purpose Code and SAC Code Mapping, Version 1.0, of 10 November 2023.3
What do people get wrong about an RBI purpose code?
People often pick a code by job title rather than by the service in the contract. The description in the RBI list is the test.2
- Personal codes: a family maintenance code on a client payment can raise questions about export status.2
- Advances: P0103's wording refers to goods and software forms, so ask your bank which code it wants for a services advance.24
What happens with a wrong code is covered in wrong purpose code consequences, and fixes in correcting a purpose code after payment.
Which terms are related to an RBI purpose code?
These terms describe the records an RBI purpose code feeds into:
- Inward remittance: the foreign receipt the code describes.1
- FIRA: the advice that shows the code for each receipt.4
- e-BRC: the certificate DGFT generates from the bank's record.4
- RBI purpose codes list for exporters: the receipt codes relevant to exporters.2
- Purpose code for freelancers: how freelancers choose a code.
How did we verify this?
We checked this page against the sources below on 30 October 2026. Read our methodology or report an error.
- [1]RBI: A.P. (DIR Series) Circular No. 84 (RBI/2011-12/413) dated 29 February 2012, Compilation of R-Returns: Reporting under FETERS
- [2]HDFC Bank: Inward Remittance Purpose Codes (bank reproduction of the RBI list, checked 28 October 2026)
- [3]DGFT: Purpose Code and SAC Code Mapping, Version 1.0, 10 November 2023
- [4]DGFT: FAQs (Self-Generation of eBRC), Version 1.0, March 2024
Frequently asked questions
Who chooses the RBI purpose code on a foreign payment?+
The bank reports the RBI purpose code, based on what the remitter or the exporter declares about the payment. If your bank asks, tell it which service the payment is for; payment platforms often ask you to choose the purpose code when you set up payouts or withdraw funds.1
What RBI purpose code should a freelancer use?+
A freelancer should use the RBI purpose code that describes the service in the contract. For example, P1007 is advertising and trade fair services, P1005 is accounting, auditing and book keeping services, and P1101 covers audio-visual and related services such as video production.2
Can a wrong RBI purpose code be corrected after payment?+
Yes, through the bank that credited the payment. DGFT's e-BRC FAQs say exporters must contact the bank for purpose code changes, and banks can amend the inward remittance record. Ask the bank to confirm once the amended record is updated.4
Is there an RBI purpose code for an advance payment for services?+
RBI's list has P0103 for advance receipts against export contracts, but its wording refers to goods and software forms, so ask your bank before the advance arrives whether it wants P0103 or the code for the service you will export. See the [purpose code for advance payments](/blog/purpose-code-for-advance-payment-export).24
How does an RBI purpose code connect to GST service codes?+
DGFT maps RBI purpose codes to GST service accounting codes (SAC) in its Purpose Code and SAC Code Mapping of 10 November 2023. The mapping links the reason a bank reports for a receipt with the service classification used for GST on the export invoice.3
This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.
Keep reading
What are the RBI purpose codes for receiving export of services payments?
Every RBI receipt purpose code in groups P02 to P16 with its exact description from Circular No. 84, and which kinds of Indian service exporters use each group.
RBI and FEMAWhich RBI purpose code should a freelancer or service exporter use?
Which RBI purpose code to use for software, design, video editing, marketing, writing, consulting, tutoring and bookkeeping exports, and how to fix errors.
Purpose codesHow do you correct a wrong purpose code after a foreign payment has been credited?
Steps to change a wrong purpose code on a foreign payment already credited: ask the bank to amend the IRM, fix any e-BRC, and handle platform payouts like Upwork.
Purpose codesWhat happens if a foreign payment is received under the wrong purpose code?
What RBI, DGFT and banks say happens when a foreign receipt carries the wrong purpose code: e-BRC blocks, mismatched GST evidence, and amendment deadlines.
GlossaryWhat is an inward remittance?
An inward remittance is money sent into India from abroad and credited by an Indian bank. What it means for service exporters: purpose codes, IRM, FIRA, e-BRC.