RBI and FEMA

Wise or Western Union: Which RBI Inward Remittance Rules Apply to Export Payments from Europe

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: 6 min read

Short answer

RBI's Money Transfer Service Scheme allows only inward personal remittances and excludes trade related remittances.¹ RBI lists Western Union for cross-border money transfer, inbound only.² Wise Payments India is an authorised PA-CB for inward payments from 12 March 2026.² Export payments from Europe fall under the FEMA 2026 Regulations.³ SEPA covers euro transfers.⁴

Applies to	Rules involved	Platforms compared	Last verified
Indian exporters paid by European clients; individuals receiving personal money from Europe¹³	FEMA 2026 Regulations, MTSS Master Direction, PA Master Direction paragraph 11(d)¹³⁵	Skydo, Razorpay, Karbon Business, Western Union, Wise¹⁵¹⁶¹⁷¹⁸¹⁹	31 October 2026²

Invoice amountCurrencyHow the client pays

900 EUR = ₹93,742 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	Karbon BusinessLowest estimated costBank transfer to a Karbon virtual USD account	US bank transfers and marketplace payouts	₹937plus GST, rate not stated	0%	₹92,636 to ₹92,804	1.00 to 1.18%
2	RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)	Local transfers from the US, UK and eurozone	₹1,000plus GST, rate not stated	0%	₹92,562 to ₹92,742	1.07 to 1.26%
3	WinvestaGlobal Collections Account, standard plan (up to 2,000 a month per currency)	Local transfers with a published per-payment fee	₹1,710	0%	₹92,032	1.82%
4	SkydoTransfer to Skydo local account details or international SWIFT account	Local bank transfers from major markets	₹2,113	0%	₹91,629	2.25%
5	PayoneerLocal bank transfer to Payoneer receiving account details	Marketplace payouts such as Amazon or Upwork	₹0no GST stated	1 to 4%	₹89,992 to ₹92,804	1.00 to 4.00%
6	PayPalInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)	Clients paying by card or PayPal balance	₹4,161no GST stated	3 to 4%	₹85,997 to ₹86,893	7.31 to 8.26%

Not estimated because pricing is not fully published: Cashfree Payments, Dodo Payments, PingPong, Tazapay, TransFi, 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.

Searches about bringing money from Europe to India often mix two kinds of inward remittance. Money a relative or friend sends you for personal use can travel through a money transfer service under RBI's Money Transfer Service Scheme (MTSS).¹ Payment from a European client for work you did is an export receipt, governed by the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (the 2026 Regulations).³ This page's heading asks which rules apply, because MTSS excludes trade related remittances, so Western Union and Wise sit under different rules.¹² For European client payments in full, read how to receive payments from Europe to India.

How do Wise and Western Union compare for money from Europe?

Wise collects export payments for Indian businesses as an authorised payment aggregator, while Western Union is authorised for inbound cross-border money transfer.²²⁰ The table adds the three lowest-cost providers for an EUR 4,500 receipt on published fees, ordered by estimated cost, cheapest first, then the rest A to Z.¹⁵¹⁶¹⁷

Platform	Best for	Fee	FX markup	Settlement	FIRA	RBI PA-CB status	Source
Skydo	Local bank transfers from major markets	USD 19 plus GST up to USD 2,000; USD 29 plus GST from USD 2,001 to 10,000; 0.3% plus GST above	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 & O (8 January 2026)	²¹⁵²¹²⁴²⁷
Razorpay	Local transfers from the US, UK and eurozone	1% plus GST per bank transfer; flat ₹1,000 on transactions below ₹1,00,000	Razorpay says 0% markup on bank transfers	T+1 for bank transfers	Foreign Inward Remittance Statement (FIRS) within 24 hours of settlement	Authorised PA-CB I & O (19 December 2023)	²¹⁶²²
Karbon Business	US bank transfers and marketplace payouts	1% transaction fee, listed on its PayPal comparison page	0% (freelancer page); 0.5% to 1.0% (PayPal alternative page)	24 to 48 hours	FIRA for every transaction from a banking partner	Not on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB	²¹⁷²⁵²⁶
Western Union	Personal money sent by family or friends abroad	Not published on its India receive page	Not published on its India receive page	Not published on its India receive page	Not mentioned on its India receive page	Listed for cross-border money transfer, inbound only (31 March 2009); not a PA-CB	¹²¹⁸
Wise	Bank transfers to local account details	Domestic (non-Swift) receipts free (business fee table); 2 USD equivalent per transfer to the INR account (help article); EUR 2.39 per EUR Swift payment; 18% GST on Wise fees	Mid-market rate plus a fee that depends on the currency; no INR percentage published	INR reaches the bank within 1 to 2 days of Wise receiving the payment	e-FIRC for each transfer within 3 working days	Authorised PA-CB-I (12 March 2026)	²¹⁹²⁰²³

Western Union in India: Western Union's India receive page offers cash pickup at agent locations and credit to a bank account, and asks for the purpose of the remittance.¹⁸
MTSS limits: USD 2,500 per remittance, cash up to ₹50,000 and 30 remittances a year per beneficiary.¹
Wise EUR: Wise lists EUR among its local-detail currencies and returns single payments above ₹25 lakh equivalent.²⁰

Which RBI rule governs money from Europe?

Money from Europe is governed by the 2026 Regulations when it pays for exported services, and by MTSS when it is a personal remittance through a money transfer company.¹³

Rule	Best for (who it applies to)	Plain meaning	Source
FEMA 2026 Regulations, regulations 3 to 5	Exporters paid by European clients	EDF within 30 days from the end of the invoice month; realisation within nine months	³⁶
MTSS, paragraph 1.1	Individuals receiving personal money	Only inward personal remittances, such as family maintenance; no outward remittance	¹
MTSS, paragraph 3.4	Individuals receiving personal money	Trade related remittances excluded; USD 2,500 cap; 30 a year	¹
PA Master Direction, paragraph 11(d)	Exporters paid through a PA-CB	₹25 lakh per transaction	⁵
Regulation 19	Exporters paid by wire	Banks publish documents, timelines and charges	³

See what is an inward remittance for the general term.

What does each option charge?

Each option publishes its euro charges differently, and Western Union's India receive page publishes no receiver charge.¹⁵¹⁶¹⁷¹⁸²³

Platform	Best for	Receiving fee	Conversion to INR	Source
Skydo	Local bank transfers from major markets	USD 19 or 29 plus GST by USD-equivalent band	0% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)	¹⁵²¹²⁴²⁷
Razorpay	Local transfers from the US, UK and eurozone	1% plus GST; SEPA in EUR	0% markup on bank transfers, per Razorpay	¹⁶²²
Karbon Business	US bank transfers and marketplace payouts	1% transaction fee	0% (freelancer page); 0.5% to 1.0% (PayPal alternative page)	¹⁷²⁵
Western Union	Personal money sent by family or friends abroad	Not published on its India receive page	Not published	¹¹⁸
Wise	Bank transfers to local account details	Free domestic (business fee table); 2 USD equivalent per transfer to the INR account (help article); EUR 2.39 per EUR Swift payment	Currency-dependent fee	¹⁹²⁰²³

Which option is cheapest at EUR 1,800, EUR 4,500 and EUR 9,000?

On published fees, Razorpay and Karbon Business cost least at EUR 1,800 and Skydo costs least at EUR 4,500 and EUR 9,000.¹⁵¹⁶¹⁷ The table below works out the INR you receive at today's rate.

Platform	Best for	INR on EUR 1,800	INR on EUR 4,500	INR on EUR 9,000	Cost on EUR 4,500
SkydoMost INRTransfer to Skydo local account details or international SWIFT account	Local bank transfers from major markets	₹1,85,371	₹4,65,484	₹9,34,193	0.69%
Karbon BusinessBank transfer to a Karbon virtual USD account	US bank transfers and marketplace payouts	₹1,85,271 to ₹1,85,609	₹4,63,178 to ₹4,64,022	₹9,26,356 to ₹9,28,043	1.00 to 1.18%
RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)	Local transfers from the US, UK and eurozone	₹1,85,271 to ₹1,85,609	₹4,63,178 to ₹4,64,022	₹9,26,356 to ₹9,28,043	1.00 to 1.18%

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

Ranked by INR received on EUR 4,500. 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, the estimated cost on published fees at EUR 1,800 is 1.00% to 1.18% for Razorpay and Karbon Business and 1.71% for Skydo; at EUR 9,000 Skydo's estimate falls to 0.35%.¹⁵¹⁶¹⁷

What documents and GST apply?

Export payments from Europe need proof of receipt, an EDF and, for registered exporters, an LUT, and the invoice is usually zero-rated for GST.³¹⁰¹¹

Document or rule	Best for	What it means	Source
FIRA or e-FIRC	Exporters	Wise issues an e-FIRC per transfer; Skydo a free FIRA per payment	²⁰²⁴
e-BRC	Exporters claiming GST refunds	Self-certified on DGFT from bank IRM data	⁹
LUT	GST-registered exporters	Invoice without IGST for the financial year	¹⁰
Place of supply	Remote services	Client's location under IGST section 13(2)	¹²
India-Germany DTAA	Exporters with German clients	Fees for technical services capped at 10%	⁷

Five conditions: Export of services needs a supplier in India, a recipient outside India, place of supply outside India, payment in convertible foreign exchange or permitted INR, and distinct persons.¹³
Personal remittances: Money received under MTSS cannot be a trade related remittance.¹

What changes in 2026 for money from Europe?

Money from Europe in 2026 is affected by the 2026 Regulations, the EDF for services, nine-month realisation, new PA-CB authorisations and an MTSS update.¹²³⁶

2026 Regulations: In force from 1 October 2026, replacing the 2015 Regulations.³
EDF: Every service exporter files one from 1 October 2026.³
Realisation: Nine months from the invoice date.⁶
Wise: Authorised as a PA-CB for inward payments on 12 March 2026.²
MTSS: RBI's MTSS Master Direction was last updated on 29 September 2026.¹
Income tax: The Income-tax Act, 2025 applies from 1 April 2026.¹⁴

Confirm your own position with a chartered accountant.

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

Can I receive payment from a European client through Western Union in India?+

RBI's Money Transfer Service Scheme permits only inward personal remittances, such as family maintenance and remittances to foreign tourists, and says trade related remittances shall not be made through it.¹ Payment for services you export to a European client is a trade receipt governed by the FEMA 2026 Regulations.³

What are the Western Union limits for receiving money in India?+

Under RBI's Money Transfer Service Scheme, each individual remittance is capped at USD 2,500, amounts up to ₹50,000 may be paid in cash, and one beneficiary can receive 30 remittances in a calendar year.¹ Western Union's India receive page offers cash pickup and bank account credit.¹⁸

Is Wise legal for receiving euro payments in India?+

RBI's list of authorised payment system operators includes Wise Payments India Private Limited as a cross-border payment aggregator for inward transactions, authorised on 12 March 2026.² Wise lists EUR among the currencies with local account details for Indian businesses.²⁰ Wise emails an e-FIRC for each transfer within 3 working days.²⁰

What is the RBI rule for receiving foreign money for freelance work?+

From 1 October 2026 the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 govern receipts for exported services.³ They require an EDF within 30 days from the end of the invoice month and realisation within nine months of the invoice.³⁶

Can a German client pay me by SEPA transfer?+

A German client can pay by SEPA credit transfer if you have euro account details from a provider such as Wise, Skydo or Razorpay.²⁰²¹²² SEPA instant credit transfers arrive in about 10 seconds, according to the European Central Bank.⁴ Wise's business fee table lists domestic receipts as free, and its India help article gives a 2 USD equivalent per transfer to the INR account.²³²⁰

Does a European client deduct tax on payments to Indian freelancers?+

It depends on the client's country and the treaty. For example, the India-Germany DTAA caps tax on fees for technical services at 10% of the gross amount.⁷ If tax is withheld, a foreign tax credit may be claimed in Form 44 from tax year 2026-27.⁸

Do I get a FIRA when money arrives through Western Union?+

Western Union's India receive page does not mention a FIRA or FIRC.¹⁸ For export receipts, providers such as Wise issue an e-FIRC for each transfer, and the exporter self-certifies the e-BRC on the DGFT portal from the bank's inward remittance data.⁹²⁰

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.

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