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RBI and FEMA

Wise or Western Union: What RBI's Inward Remittance Rules Mean for Money from the UK

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Editorial team, serviceexportguide.com
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Short answer

In 2026, Western Union's UK terms accept only accounts used for personal, not business, purposes.1 RBI's Money Transfer Service Scheme caps each personal remittance at USD 2,500 and bars trade remittances.2 Wise's UK page says sending INR to India is not yet available.3 Payments from UK clients follow the FEMA 2026 Regulations.4

Applies toRules involvedPlatforms comparedLast verified
People in India receiving money from the UK, for family support or for exported services24RBI MTSS Master Direction; FEMA 2026 Regulations; PA Master Direction 11(d)245Skydo, Razorpay, Karbon Business, Western Union, Wise631 October 2026

760 GBP = ₹94,735 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 routeBest forFee (+GST)MarkupYou receiveCost
1Karbon BusinessLowest estimated costBank transfer to a Karbon virtual USD accountUS bank transfers and marketplace payouts₹947plus GST, rate not stated0%₹93,617 to ₹93,7881.00 to 1.18%
2RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)Local transfers from the US, UK and eurozone₹1,000plus GST, rate not stated0%₹93,555 to ₹93,7351.06 to 1.25%
3WinvestaGlobal Collections Account, standard plan (up to 2,000 a month per currency)Local transfers with a published per-payment fee₹1,8420%₹92,8931.94%
4SkydoTransfer to Skydo local account details or international SWIFT accountLocal bank transfers from major markets₹2,1130%₹92,6222.23%
5PayoneerLocal bank transfer to Payoneer receiving account detailsMarketplace payouts such as Amazon or Upwork₹0no GST stated1 to 4%₹90,946 to ₹93,7881.00 to 4.00%
6PayPalInternational commercial transaction received into a PayPal account (PayPal checkout or invoice)Clients paying by card or PayPal balance₹4,193no GST stated3 to 4%₹86,920 to ₹87,8267.29 to 8.25%

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.

Money from the United Kingdom reaches India for two different reasons: family support from relatives in the UK, and payment from a UK client for work done in India. RBI handles these under separate rules, and Wise and Western Union fit them differently.

If you are an Indian freelancer billing UK clients, read Wise, Payoneer or PayPal for UK clients and how to receive money from the United Kingdom to India. This page covers the inward remittance side.

How do Wise and Western Union compare for money from the UK?

Wise and Western Union compare differently for money from the UK: Western Union moves personal money only, and Wise lets Indian businesses receive GBP from clients while its UK page says personal INR sends to India are not yet available.1143 For client payments, the table also lists the three lowest-cost GBP providers on published fees for GBP 3,800, cheapest first, then the rest A to Z.151617

PlatformBest forFeeFX markupSettlementFIRARBI statusSource
SkydoLocal bank transfers from major marketsPublished in USD: USD 19 plus GST up to USD 2,000; USD 29 plus GST to USD 10,0000% 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 paymentAuthorised PA-CB-I and O, 8 January 202618158633
RazorpayLocal transfers from the US, UK and eurozone1% per bank transfer plus GST; flat ₹1,000 below ₹1,00,000Razorpay says 0% on bank transfersT+1 for bank transfersFIRS emailed within 24 hours of settlementAuthorised PA-CB I and O191696
Karbon BusinessUS bank transfers and marketplace payouts1% transaction fee on its comparison page0% on its freelancer page; 0.5% to 1.0% on its comparison pageKarbon says 24 to 48 hoursFIRA for every transaction from a banking partnerNot on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB2017216
Western UnionPersonal transfers to individuals in IndiaReceiving is free; the sender pays all feesInterbank rate plus a margin Western Union keepsNot published for the UKNot publishedAuthorised cross-border money transfer operator, inbound only, under MTSS, 31 March 20091106
WiseBank transfers to local account detailsBusiness receipts: 2 USD equivalent per transfer to the INR account (help article); free e-FIRC (receive pricing page); 18% GST on feesMid-market rate plus a fee; no INR percentage publishedBusiness INR within 1 to 2 dayse-FIRC per business transfer within 3 working daysAuthorised PA-CB-I, 12 March 202614226

Wise's general Business fee table lists 2.16 GBP for a GBP Swift payment and free domestic payments, and its India help article gives a 2 USD equivalent per transfer to the INR account.2314

Which RBI rule governs money from the UK?

Personal money from the UK sent through a money transfer operator is governed by RBI's Money Transfer Service Scheme (MTSS), and payment from a UK client for services is governed by the FEMA 2026 Regulations.24

RuleBest for (who it applies to)Plain meaningSource
RBI MTSS Master Direction, paragraph 1.1Families receiving support from the UKOnly inward personal remittances, such as family maintenance, and remittances to foreign tourists; no outward remittances2
RBI MTSS Master Direction, paragraph 3.4Anyone collecting through Western Union or another MTSS operatorUSD 2,500 cap per remittance, 30 per beneficiary per calendar year, cash up to ₹50,000, no trade related remittances2
FEMA 2026 Regulations, regulations 3 to 5Indian exporters with UK clientsEDF to the AD bank and realisation within nine months of the invoice424
RBI PA Master Direction, paragraph 11(d)Exporters paid through a PA-CB₹25 lakh cap per transaction5
RBI Circular No. 84 (2012)Every inward remittanceBanks report each receipt with a purpose code13

Because MTSS excludes trade related remittances, Western Union is not a route for a UK client's invoice.21

What does each option charge for money from the UK?

Each option charges for money from the UK differently: Western Union charges the sender and earns from its exchange margin, while export platforms charge the Indian business that receives.10115

OptionBest forWho paysFeeExchange rateSource
SkydoLocal bank transfers from major marketsIndian businessUSD 19 to USD 29 per payment up to USD 10,000, plus GST0% markup on the mid-market rate (product page); retail rate set by Skydo or its partner banks (terms)1525833
RazorpayLocal transfers from the US, UK and eurozoneIndian business1% plus GSTRazorpay says 0% markup16
Karbon BusinessUS bank transfers and marketplace payoutsIndian business1% listed0% (freelancer page); 0.5% to 1.0% (PayPal alternative page)2017
Western UnionPersonal transfers to individuals in IndiaSenderSet per transfer; receiving is freeInterbank rate plus margin101
Wise BusinessBank transfers to local account detailsIndian business2 USD equivalent per transfer (help article), plus 18% GST; free e-FIRC (receive pricing page)Fee varies by currency, no INR percentage1422

Razorpay's GBP details accept FPS, the UK Faster Payments scheme.19

Which option is cheapest at GBP 400, GBP 1,500 and GBP 3,800?

For client payments at GBP 400, GBP 1,500 and GBP 3,800, the cheapest option depends on the invoice size, because Skydo charges a fixed fee per band while Razorpay and Karbon charge a percentage.151617 The table works out INR received at today's rate from published fees.

PlatformBest forINR on GBP 1,500INR on GBP 3,800INR on GBP 7,600Cost on GBP 3,800
SkydoMost INRTransfer to Skydo local account details or international SWIFT accountLocal bank transfers from major markets₹1,84,864₹4,70,450₹9,43,9970.68%
Karbon BusinessBank transfer to a Karbon virtual USD accountUS bank transfers and marketplace payouts₹1,84,771 to ₹1,85,107₹4,68,086 to ₹4,68,939₹9,36,172 to ₹9,37,8771.00 to 1.18%
RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)Local transfers from the US, UK and eurozone₹1,84,771 to ₹1,85,107₹4,68,086 to ₹4,68,939₹9,36,172 to ₹9,37,8771.00 to 1.18%

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

Ranked by INR received on GBP 3,800. 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 GBP 3,800 Skydo's published fee is about 0.68% of the invoice and Razorpay's 1% plus GST is 1.18%, while on GBP 1,500 Skydo's lower band comes to about 1.12%.1516

What documents and GST apply to money from the UK?

Money from the UK 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 needs the right purpose code with your bank.26412

ItemBest forWhat appliesSource
P1301Family support from Indian non-residents in the UKInward remittance from Indian non-residents towards family maintenance and savings12
P1302Gifts from relatives or friends in the UKPersonal gifts and donations12
FIRA or e-FIRCExport receiptsIssued by Skydo, Karbon and Wise Business, and as a FIRS by Razorpay820149
e-BRCExport receiptsSelf-certified on DGFT from the bank's IRM data26
EDFEvery service exporterFiled with the AD bank within 30 days from the end of the invoice month4
GSTExporters billing UK clientsPlace of supply in the UK under section 13(2); zero-rated under section 16; LUT for registered suppliers272829
  • Export test: All five conditions of section 2(6) of the IGST Act must hold for a client payment to be an export.30
  • Western Union documents: Western Union India's pages do not mention a FIRA for the recipient.107

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

What changes in 2026 for money from the UK?

The 2026 changes for money from the UK 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.246

  • MTSS: RBI's MTSS Master Direction was updated on 29 September 2026 and still caps each remittance at USD 2,500.2
  • FEMA 2026 Regulations: In force from 1 October 2026.4
  • EDF: RBI Circular No. 20 supersedes the SOFTEX circulars from 1 October 2026.31
  • Realisation: Nine months from the invoice date, or twelve months in rupees.24
  • 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 2026.6
  • Income tax: The Income-tax Act, 2025 applies from 1 April 2026.32

For GBP rates and every export route, read receiving GBP 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.

  1. [1]Western Union UK, Online Terms and Conditions, Part B, sections II.2 and II.4 (checked 2026-10-31)
  2. [2]RBI: Master Direction, Money Transfer Service Scheme (MTSS), updated as on 29 September 2026, paragraphs 1.1 and 3.4 (checked 2026-10-31)
  3. [3]Wise UK, Send money to India (checked 2026-10-31)
  4. [4]RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification No. FEMA 23(R)/2026-RB, amended up to 22 September 2026, regulations 3, 4, 5 and 19
  5. [5]RBI: Master Direction on Regulation of Payment Aggregator dated 15 September 2025, paragraph 11(d) (PA-CB transaction limit)
  6. [6]RBI: Certificates of Authorisation issued under the Payment and Settlement Systems Act, 2007, list dated 30 October 2026 (checked 2026-10-31)
  7. [7]Western Union India, Receive money (checked 2026-10-31)
  8. [8]Skydo, Receive international payments as a freelancer in India (product page) (checked 2026-10-28)
  9. [9]Razorpay Docs, FIRS Automated Process (checked 2026-10-28)
  10. [10]Western Union India, Frequently asked questions: receive money (checked 2026-10-31)
  11. [11]Remitly User Agreement and Transaction Terms (UK), User Agreement 4.2 and Transaction Terms 3.1 and 5.1 (checked 2026-10-31)
  12. [12]HDFC Bank: Inward Remittance Purpose Codes (bank reproduction of the RBI list, checked 28 October 2026)
  13. [13]RBI: A.P. (DIR Series) Circular No. 84 dated 29 February 2012, reporting under FETERS (revised purpose codes)
  14. [14]Wise Help Centre, Receiving payments for Indian businesses (checked 2026-10-28)
  15. [15]Skydo FAQs, How much does Skydo charge? (checked 2026-10-28)
  16. [16]Razorpay, Multi-Currency Account for International Bank Transfers (MoneySaver Export Account pricing) (checked 2026-10-28)
  17. [17]Karbon Business, PayPal Alternative comparison page (checked 2026-10-28)
  18. [18]Skydo FAQs, What countries can I get paid locally through Skydo? (checked 2026-10-28)
  19. [19]Razorpay Docs, International Bank Transfer (MoneySaver Export Account) (checked 2026-10-28)
  20. [20]Karbon Business, Karbon for Freelancers (checked 2026-10-28)
  21. [21]Karbon Forex Terms and Conditions, Interropac Private Limited (checked 2026-10-28)
  22. [22]Wise India, Fees for getting paid (Wise Business receive pricing) (checked 2026-10-28)
  23. [23]Wise India site, Wise Business pricing, fees at a glance (checked 2026-10-28)
  24. [24]RBI: Notification FEMA 23(R)/(1)/2026-RB dated 22 September 2026, amending regulation 5 (realisation period)
  25. [25]Skydo, home page fee table (checked 2026-10-28)
  26. [26]DGFT: eBRC system, self-certification of eBRC from bank inward remittance messages (IRMs), Trade Notice 33/2023-24 dated 10 November 2023
  27. [27]CBIC: IGST Act, 2017, section 13 (place of supply where supplier or recipient is outside India)
  28. [28]CBIC: IGST Act, 2017, section 16 (zero rated supply)
  29. [29]GST Portal user guide: Furnishing of Letter of Undertaking (FORM GST RFD-11)
  30. [30]CBIC: IGST Act, 2017, section 2, clause (6) (export of services)
  31. [31]RBI: A.P. (DIR Series) Circular No. 20 dated 16 January 2026, Export and Import of Goods and Services
  32. [32]PIB: Income-tax Act, 2025 comes into force from 1 April 2026
  33. [33]Skydo, Terms of Use, last updated 9 April 2026 (checked 2026-10-28)

Frequently asked questions

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

Family in the UK can send to your Indian bank account through a money transfer operator such as Western Union, which deposits INR using your account number and IFSC.7 If the money pays for your work, use an export route such as Skydo or Razorpay GBP account details, which issue a FIRA or statement.89

Can a UK client pay my invoice through Western Union?+

Western Union's UK terms say it only accepts payments and sends money to accounts used for personal, not business, purposes.1 RBI's Money Transfer Service Scheme, under which Western Union is authorised in India, does not allow trade related remittances.26 A UK client should pay through an export route instead.

Can someone in the UK send INR to India with Wise?+

Wise's UK page says it is working to let customers send INR to India from the UK but is not there yet.3 The page describes sending USD to an Indian bank account by international wire instead, using the recipient bank's account number and Swift code.3

Is there a limit on money received from the UK 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.10 RBI's Money Transfer Service Scheme sets the same USD 2,500 cap per remittance and 30 remittances per beneficiary in a calendar year, with cash up to ₹50,000.2

Can Remitly be used for UK client payments to India?+

Remitly's UK terms say its services are only available to consumers using them for personal reasons, and that money transfers must not be made for any commercial purposes.11 Remitly also says its exchange rate includes a small margin that it keeps.11 UK client payments fit export routes better.

Which purpose code applies to money from family in the UK?+

In RBI's purpose code list, P1301 covers inward remittance from Indian non-residents towards family maintenance and savings, and P1302 covers personal gifts and donations.12 Payments for services use service codes such as P0802 or P1006, so tell your bank which applies to each receipt.1213

Does Western Union charge the receiver in India?+

Western Union India's FAQ says all fees are paid by the sender and receiving money is free of charge.10 Western Union's UK terms say consumer exchange rates are set by adding a margin to interbank rates, and that it keeps the difference, so the rupees received still reflect that margin.1

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

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