RBI and FEMA

Wise, Remitly or Western Union: What RBI's Inward Remittance Rules Mean for Money from Canada

Author:: Editorial team, serviceexportguide.com
Verified by:: Editorial team
Published: 31 October 2026
Last modified: 31 October 2026
Fees checked on: 28 October 2026
Reading time: 7 min read

Short answer

In 2026, Remitly's personal service and Western Union send money from Canada to India for personal purposes only, under their Canadian terms, while Remitly says Remitly Business is available to businesses in Canada.¹²³⁹ RBI's Money Transfer Service Scheme caps each personal remittance at USD 2,500.³ Wise lets people in Canada send CAD to Indian bank accounts.⁴ Payments from Canadian clients follow the FEMA 2026 Regulations instead.⁵

Applies to	Rules involved	Platforms compared	Last verified
People in India receiving money from Canada, for family support or for exported services³⁵	RBI MTSS Master Direction; RDA trade limit; FEMA 2026 Regulations; PA Master Direction 11(d)³⁶⁵⁷	Skydo, Payoneer, PayPal, Remitly, Western Union, Wise⁸⁹	31 October 2026

Invoice amountCurrencyHow the client pays

1,400 CAD = ₹92,537 at the reference rate for 13 November 2026 (European Central Bank data).

Estimated rupees received, on published fees

Sorted by estimated rupees received, highest first. Only providers that publish both their fee and their conversion markup for this currency and method can be estimated.

#	Provider and route	Best for	Fee (+GST)	Markup	You receive	Cost
1	SkydoLowest estimated costTransfer to Skydo local account details or international SWIFT account	Local bank transfers from major markets	₹2,113	0%	₹90,425	2.28%
2	PayoneerLocal bank transfer to Payoneer receiving account details	Marketplace payouts such as Amazon or Upwork	₹0no GST stated	1 to 4%	₹88,836 to ₹91,612	1.00 to 4.00%
3	PayPalInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)	Clients paying by card or PayPal balance	₹4,091no GST stated	3 to 4%	₹84,908 to ₹85,793	7.29 to 8.24%

Not estimated because pricing is not fully published: Cashfree Payments, PingPong, Wise.

Where a provider says GST applies to its fee but not at what rate, the range runs from no GST to 18%, the rate Skydo, Stripe and Winvesta state on their pages. Estimates use each provider's published fee, conversion markup, GST on fees and FIRA charge, checked 2026-10-28, against the reference rate. They exclude charges taken by intermediary banks and your own bank, and the rate a provider actually applies at the time of conversion. Check the provider's pricing page before you choose. The order is calculated only from these published numbers; no provider can pay to change its position, and there are no affiliate links.

Money from Canada reaches India for two very different reasons: family support from relatives who live there, and payment from a Canadian client for work done in India. RBI treats these under different rules, and Wise, Remitly and Western Union fit them differently.

If you are an Indian freelancer or company billing Canadian clients, start with how to receive money from Canada to India and PayPal, Wise or Payoneer for a Canadian client. This page explains the inward remittance side.

How do Wise, Remitly and Western Union compare for money from Canada?

Wise, Remitly and Western Union all move personal money from Canada to Indian bank accounts, but only Wise also offers Indian businesses a way to receive client payments.⁴¹⁷¹² Remitly's Canadian agreement treats business use of personal accounts as a breach, Remitly Business is offered to businesses in Canada without a published FIRA for the recipient, and Western Union's Canadian terms accept only accounts used for personal purposes, so for export receipts the table also lists the lowest-cost CAD providers on published fees for CAD 7,000, cheapest first, then the rest A to Z.¹²¹⁹³⁹²⁷

Platform	Best for	Fee	FX markup	Settlement	FIRA	RBI status	Source
Skydo	Local bank transfers from major markets	Published in USD: USD 19 plus GST up to USD 2,000; USD 29 plus GST to USD 10,000	0% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)	Within 24 hours (product page); T+1 to T+3 business days (terms)	Free FIRA on every payment	Authorised PA-CB-I and O, 8 January 2026	¹¹¹⁹²⁰⁸³⁷
Payoneer	Marketplace payouts such as Amazon or Upwork	Free to receive (multi-currency account page); fixed fee or 1% for non-local currencies (pricing page)	1% to 4% to withdraw in INR	Within 24 hours (multi-currency account page); within 48 hours (pricing page)	Free digital FIRA per transaction	In-principle PA-CB authorisation; RBI lists it as under process	¹²²¹²²²³⁹
PayPal	Clients paying by card or PayPal balance	4.40% plus CAD 0.30	3.0% or 4.00% above the base rate	Up to 5 business days to the bank	Free weekly digital FIRA from February 2026	In-principle authorisation as an existing PA-CB	²⁴¹⁴²⁵²⁶⁹
Remitly	Personal transfers from senders in Canada; Remitly Business for businesses in Canada	Sender pays; shown before the transfer	Remitly may earn from the rate difference	Not verified for Canada	Not published	Not on the PA-CB list	¹³⁹²⁷⁸
Western Union	Personal transfers to individuals in India	Receiving is free; the sender pays all fees	Interbank rate plus a margin Western Union keeps	Not published for Canada	Not published	Authorised cross-border money transfer operator, inbound only, under MTSS, 31 March 2009	²¹⁵⁸
Wise	Bank transfers to local account details	Personal sends: example CAD 2.28 on CAD 1,000 by bank transfer. Business receipts: 2 USD equivalent per transfer (help article); free e-FIRC (receive pricing page)	Mid-market rate plus a fee	Sends usually 1 working day after conversion; business INR in 1 to 2 days	e-FIRC per business transfer	Authorised PA-CB-I, 12 March 2026	⁴¹⁷⁸³⁸

For a family transfer, the sender's own Canadian provider sets the cost; for a client payment, the Indian business's receiving platform does.⁴¹⁹

Which RBI rule governs money from Canada?

Personal money from Canada sent through a money transfer operator is governed by RBI's Money Transfer Service Scheme (MTSS), and payment from a Canadian client for services is governed by the FEMA 2026 Regulations.³⁵

Rule	Best for (who it applies to)	Plain meaning	Source
RBI MTSS Master Direction, paragraph 1.1	Families receiving support from Canada	Only inward personal remittances, such as family maintenance, and remittances to foreign tourists; no outward remittances	³
RBI MTSS Master Direction, paragraph 3.4	Anyone collecting through Western Union or another MTSS operator	USD 2,500 cap per remittance, 30 per beneficiary per calendar year, cash up to ₹50,000, no trade related remittances	³
RBI Circular No. 9 dated 20 October 2016	Trade payments through exchange house Rupee Drawing Arrangements	Each trade transaction under RDA is capped at ₹15 lakh	⁶
FEMA 2026 Regulations, regulations 3 to 5	Indian exporters with Canadian clients	EDF to the AD bank and realisation within nine months of the invoice	⁵²⁸
RBI PA Master Direction, paragraph 11(d)	Exporters paid through a PA-CB	₹25 lakh cap per transaction	⁷

The purpose code tells the bank which set of rules applies, so a family transfer and a client payment should never share one.²⁹

What does each option charge for money from Canada?

Each option charges for money from Canada differently: Remitly, Western Union and Wise personal sends charge the sender in Canada, while export platforms charge the Indian business that receives.¹¹⁵⁴¹⁹

Option	Best for	Who pays	Fee	Exchange rate	Source
Skydo	Local bank transfers from major markets	Indian business	USD 19 to USD 29 per payment up to USD 10,000, plus GST	0% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)	¹⁹³⁰²⁰³⁷
Payoneer	Marketplace payouts such as Amazon or Upwork	Indian business	Free to receive (multi-currency account page); fixed fee or 1% for non-local currencies (pricing page)	1% to 4% to INR	²¹¹²
PayPal	Clients paying by card or PayPal balance	Indian business	4.40% plus CAD 0.30	3.0% or 4.00% above base rate	¹⁴
Remitly	Personal transfers from senders in Canada	Sender	Shown before the transfer	Rate includes Remitly's margin	¹
Western Union	Personal transfers to individuals in India	Sender	Set per transfer; receiving is free	Interbank rate plus margin	¹⁵²
Wise personal send	Family members in Canada	Sender	CAD 2.28 by bank transfer on CAD 1,000, CAD 6.56 from a Wise balance	Mid-market rate	⁴

Wise's Canadian page also caps business senders or recipients at 15 lakh INR per working day.⁴

Which option is cheapest at CAD 700, CAD 2,800 and CAD 7,000?

For client payments at CAD 700, CAD 2,800 and CAD 7,000, the cheapest option depends on the invoice size, because Skydo's fee is fixed per band while Payoneer's and PayPal's scale with the amount.¹⁹²¹¹⁴ The table works out INR received at today's rate from published fees.

Platform	Best for	INR on CAD 2,900	INR on CAD 7,100	INR on CAD 14,000	Cost on CAD 7,100
SkydoMost INRTransfer to Skydo local account details or international SWIFT account	Local bank transfers from major markets	₹1,88,460	₹4,66,072	₹9,22,149	0.69%
PayoneerLocal bank transfer to Payoneer receiving account details	Marketplace payouts such as Amazon or Upwork	₹1,84,017 to ₹1,89,768	₹4,50,525 to ₹4,64,604	₹8,88,359 to ₹9,16,121	1.00 to 4.00%
PayPalInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)	Clients paying by card or PayPal balance	₹1,75,902 to ₹1,77,734	₹4,30,683 to ₹4,35,169	₹8,49,253 to ₹8,58,099	7.27 to 8.23%

Not estimated because pricing for CAD is not fully published: Wise.

Ranked by INR received on CAD 7,100. Reference rate: European Central Bank data for 13 November 2026. Fees, conversion markup, GST on fees and FIRA charges as published by each provider, checked 28 October 2026. Ranges appear where a provider publishes a range or does not state its GST rate. Intermediary bank charges are excluded. See the methodology.

For example, on CAD 7,000 Skydo's published fee is about 0.68% of the invoice, and PayPal's 4.40% fee with its 3.0% or 4.00% conversion spread totals roughly 7.3% to 8.2%.¹⁹¹⁴ For a family transfer of CAD 1,000, Wise's example bank transfer fee of CAD 2.28 is about 0.23% before any exchange rate difference.⁴

What documents and GST apply to money from Canada?

Money from Canada needs different documents depending on why it was sent: an export receipt needs a FIRA, e-BRC, EDF and GST treatment, while a personal remittance only needs the right purpose code with your bank.³¹⁵¹⁶

Item	Best for	What applies	Source
P1301	Family support from Indian non-residents in Canada	Inward remittance from Indian non-residents towards family maintenance and savings	¹⁶
P1302	Gifts from relatives or friends in Canada	Personal gifts and donations	¹⁶
FIRA or e-FIRC	Export receipts	Issued by Skydo, Payoneer, PayPal and Wise Business	²⁰²³²⁶¹⁷
e-BRC	Export receipts	Self-certified on DGFT from the bank's IRM data	³¹
EDF	Every service exporter	Filed with the AD bank within 30 days from the end of the invoice month	⁵
GST	Exporters billing Canadian clients	Place of supply in Canada under section 13(2); zero-rated under section 16; LUT for registered suppliers	³²³³³⁴

Export test: All five conditions of section 2(6) of the IGST Act must hold for a client payment to be an export.³⁵
Remitly and Western Union documents: Neither publishes a FIRA for the Indian recipient on the pages checked.²⁷¹⁵

See what an inward remittance is for how banks record each receipt.

What changes in 2026 for money from Canada?

The 2026 changes for money from Canada are an updated MTSS Master Direction, the FEMA 2026 Regulations from 1 October 2026, the EDF for every service exporter and new PA-CB authorisations.³⁵⁸

MTSS: RBI's MTSS Master Direction was updated on 29 September 2026 and still caps each remittance at USD 2,500.³
FEMA 2026 Regulations: In force from 1 October 2026.⁵
EDF: RBI Circular No. 20 supersedes the SOFTEX circulars from 1 October 2026.³⁶
Realisation: Nine months from the invoice date, or twelve months in rupees.²⁸
Authorisations: Skydo was authorised as PA-CB-I and O on 8 January 2026 and Wise Payments India as PA-CB-I on 12 March 2026.⁸
Remitly Canada terms: Remitly's Canadian user agreement took effect on 10 September 2026.¹

For CAD rates and every export route, read receiving CAD payments in India.

How did we verify this?

We checked this page against the sources below on 31 October 2026. Provider fees, conversion markups and RBI payment aggregator (PA-CB) status were checked on 28 October 2026. Rupee amounts use European Central Bank reference rates for 13 November 2026. Read our methodology or report an error.

Frequently asked questions

How do I receive money from Canada to India in my bank account?+

Family in Canada can send CAD to your Indian bank account through Wise, Remitly or Western Union, and you receive INR.⁴¹¹⁰ If the money is payment for your work, use an export route instead, such as Skydo or Payoneer CAD account details, so the receipt carries a FIRA and fits the FEMA rules.¹¹¹²⁵

Can a Canadian client pay my invoice through Remitly?+

Remitly's Canadian agreement says its services are only for consumers and that using them for business purposes breaches the agreement.¹ Remitly Business is for US-registered businesses under its US agreement, and Remitly's Canada site says it is also available to businesses in Canada, so a Canadian business client may be able to pay through Remitly Business.¹³³⁹ Remitly's pages do not mention a FIRA or purpose code for the Indian recipient, and Remitly is not on RBI's PA-CB list.²⁷⁸ A Canadian client can also pay an Indian supplier by bank transfer, PayPal or a provider's CAD account details.¹¹¹⁴

Is there a limit on money received from Canada through Western Union?+

Western Union India's FAQ says you can receive up to USD 2,500 or the INR equivalent per transfer and up to 30 transfers a year.¹⁵ RBI's Money Transfer Service Scheme sets the same USD 2,500 cap and 30 remittances per beneficiary in a calendar year.³

Is money from parents in Canada taxable in India?+

The tax treatment of gifts or family support from Canada depends on the relationship and the amount, and this page does not cover it. The RBI purpose code list separates family maintenance from Indian non-residents (P1301) from personal gifts and donations (P1302).¹⁶ Ask a chartered accountant about your own case.

What exchange rate does Remitly use from Canada to India?+

Remitly's Canadian agreement says Remitly and its service providers may make money from the difference between the rate at which they buy foreign currency and the rate given to the sender.¹ The rate is shown before the sender authorises the transfer, and no margin percentage is published.¹

How much does Wise charge to send CAD to India?+

Wise's Canadian page shows example fees on a CAD 1,000 transfer of CAD 2.28 when paid by bank transfer and CAD 6.56 from a Wise balance, with card payments costing more.⁴ Wise says it uses the mid-market rate, and the sender must choose a payment purpose.⁴

Can an Indian business receive CAD from clients through Wise?+

An Indian business can receive CAD through Wise Business, which lists CAD among 24 currencies it can receive.¹⁷ Wise converts each payment to INR, sends it to the verified Indian bank account and emails an e-FIRC within 3 working days.¹⁷ Wise personal accounts in India cannot receive money.¹⁸

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

Countries