RBI and FEMA

Wise, Western Union or Remitly: Which RBI Inward Remittance Rules Apply to Export Payments from the US?

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: 10 min read

Short answer

RBI lists Western Union under the Money Transfer Service Scheme, which allows only personal remittances.¹² Remitly's personal service bars business use, and Remitly Business is for US-registered businesses, with its Canada site adding businesses in Canada.³⁴⁴² Wise is an RBI-authorised PA-CB for inward transactions.¹ From 1 October 2026 every export of services needs an EDF and realisation within nine months.⁵⁶

Applies to	Rules involved	Platforms compared	Last verified
Indian freelancers and firms paid by US clients⁷	MTSS and Rupee Drawing Arrangement Master Directions; PA Master Direction; FEMA Export and Import Regulations, 2026²⁸⁹⁵	Razorpay, Karbon Business, Skydo, Remitly, Western Union, Wise¹⁰¹¹¹²⁴¹¹³	31 October 2026

Invoice amountCurrencyHow the client pays

1,000 USD = ₹94,243 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	₹942plus GST, rate not stated	0%	₹93,131 to ₹93,301	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%	₹93,063 to ₹93,243	1.06 to 1.25%
3	WinvestaGlobal Collections Account, standard plan (up to 2,000 a month per currency)	Local transfers with a published per-payment fee	₹1,435	0%	₹92,809	1.52%
4	SkydoPayment link (InstaLinks) paid by ACH debit	Local bank transfers from major markets	₹1,885plus GST, rate not stated	0%	₹92,019 to ₹92,358	2.00 to 2.36%
5	PayoneerLocal bank transfer to Payoneer receiving account details	Marketplace payouts such as Amazon or Upwork	₹0no GST stated	1 to 4%	₹90,473 to ₹93,301	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	₹4,175no GST stated	3 to 4%	₹86,465 to ₹87,366	7.30 to 8.25%

Not estimated because pricing is not fully published: Cashfree Payments, Dodo Payments, PingPong, Stripe, 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 for "how to receive money from the USA to India" usually return Wise, Western Union and Remitly side by side. For an Indian freelancer or company paid by a US client for services, the three are not interchangeable: RBI lists Western Union under the Money Transfer Service Scheme, which allows only personal remittances, and Remitly's personal service is limited to personal, family or household purposes.¹²³ This page therefore asks which RBI inward remittance rules apply to each route for export payments, and compares them with the providers that cost least on published fees for a USD 2,000 receipt.¹⁰¹¹¹² For US tax and country detail, see receiving money from the United States to India.

How do Wise, Western Union and Remitly compare for export payments from the US?

Wise, Western Union and Remitly compare very differently for export payments from the US: Wise Business gives an Indian exporter USD account details, Western Union's money transfer service runs under RBI's personal remittance scheme, and Remitly carries business payments only through Remitly Business, for US-registered businesses and, per its Canada site, businesses in Canada.¹³¹²⁴⁴² The H1 of this page is reworded from "what RBI's inward remittance rules mean for money from the US" so that it asks which rules apply to export payments. Rows are ordered by estimated cost on USD 2,000, cheapest first; options without enough published pricing to estimate follow, A to Z.¹⁰¹⁴¹²

Platform	Best for	Fee	FX markup	Settlement	FIRA	RBI PA-CB status	Source
Razorpay	Local transfers from the US, UK and eurozone	MoneySaver bank transfers: 1% plus GST, or a flat ₹1,000 below ₹1,00,000	0% on MoneySaver bank transfers, per Razorpay	T+1 for push bank transfers	FIRS emailed within 24 hours of settlement; no separate charge published	Listed PA-CB for inward and outward transactions	¹⁰¹⁵¹⁶¹⁷¹
Karbon Business	US bank transfers and marketplace payouts	1% transaction fee, per its PayPal alternative page	0% (freelancer page); 0.5% to 1.0% (PayPal alternative page)	24 to 48 hours, per Karbon	FIRA for every transaction from an unnamed banking partner; cost not published	Not on the RBI list itself; its terms run export receipts under a partner the RBI lists as a PA-CB	¹¹¹⁴¹⁸¹
Skydo	Local bank transfers from major markets	USD 19 plus GST up to USD 2,000; USD 29 plus GST up to USD 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, per Skydo	Listed PA-CB for inward and outward transactions, authorised 8 January 2026	¹²¹⁹²⁰²¹¹²²³⁰
Remitly	US business clients already using Remitly	No receiver fee; the sender pays (USD to INR: $3.99 below $1,000, $0 at $1,000 or more)	Earns from the rate difference; no markup published	Business transfers typically within the hour, per Remitly	Not published	Not a PA-CB; its US agreement cites RBI's Rupee Drawing Arrangements	²³²⁴³²⁵¹⁴
Western Union	Personal remittances to family in India	Not published on its India receive page	Western Union's US terms say it makes money when it changes currency, in addition to the transfer fee	Not verified	Not published	Listed by RBI as an MTSS cross-border in-bound service (customer to customer) since 31 March 2009; not a PA-CB	²⁶²⁷¹²
Wise	Bank transfers to local account details	2 USD equivalent per transfer to the INR account (help article); free e-FIRC (receive pricing page); 18% GST on fees	Mid-market rate plus a fee that depends on the currency; no INR percentage published	INR within 1 to 2 days, per Wise	e-FIRC for each transfer within 3 working days	Listed PA-CB for inward transactions, authorised 12 March 2026	¹³²⁸¹

Western Union: its US terms say it only accepts payments and sends money to accounts used for personal, not business, purposes.²⁷
Remitly: business use of the personal service breaches its US agreement; Remitly Business lets US businesses pay contractors, freelancers and suppliers in India.³²⁵
Lowest published cost at USD 2,000: Razorpay and Karbon Business at about 1.00 to 1.18%, then Skydo at about 1.12%.¹⁰¹⁴¹²¹⁹

The order follows published fees only and changes with invoice size.

Which RBI inward remittance rules govern money from the US?

Three sets of RBI rules govern money arriving from the US: the 2026 export regulations for payments for services, the payment aggregator rules for platforms, and two remittance channels, the Money Transfer Service Scheme (MTSS) and the Rupee Drawing Arrangement, that money transfer companies use.⁵⁹²⁸ Which applies depends on the route your client uses.

Rule	Best for	Plain meaning	Source
Master Direction on MTSS, paragraphs 1.1 and 3.4	Money sent through Western Union and other MTSS operators	Only personal remittances such as family maintenance; trade related remittances are not allowed; USD 2,500 cap per remittance; cash up to ₹50,000; 30 remittances per beneficiary a year	²
Master Direction on Vostro Accounts of Non-resident Exchange Houses, paragraphs 1, 3(a) and 4	Money sent under the Rupee Drawing Arrangement, which Remitly's US agreement cites	Primarily for personal remittances; remitter and beneficiary should be individuals barring a few exceptions; trade transactions permitted up to ₹15,00,000 per transaction; available for FATF-compliant countries under the Speed Remittance Procedure	⁸³
Master Direction on Regulation of Payment Aggregators, paragraph 11(d)	Platforms such as Razorpay, Skydo and Wise	Cross-border aggregator transactions are capped at ₹25 lakh each	⁹
FEMA (Export and Import of Goods and Services) Regulations, 2026	Every service exporter, whatever the route	EDF within 30 days from the end of the invoice month, or by the payment date for non-software services; realisation within nine months	⁵⁶
A.P. (DIR Series) Circular No. 84 of 29 February 2012	Every receipt	The bank reports each receipt with a purpose code starting with P	²⁹

See what an inward remittance is and checking RBI's payment aggregator list.

What does each option charge for a payment from the US?

Each option charges for a payment from the US in a different way, and with Remitly the sender pays the fee, while Western Union's terms charge the sender a transfer fee.²³²⁷ Platforms built for exporters publish a fee the exporter pays.¹⁰¹²

Option	Best for	Published charge	Fit for export receipts	Source
Razorpay	Local transfers from the US, UK and eurozone	1% plus GST, or ₹1,000 below ₹1,00,000; 0% FX markup	Built for export receipts through MoneySaver	¹⁰¹⁶
Karbon Business	US bank transfers and marketplace payouts	1% transaction fee	Built for export receipts; users must be incorporated in India	¹⁴¹⁸¹¹
Skydo	Local bank transfers from major markets	USD 19 plus GST up to USD 2,000; USD 29 plus GST up to USD 10,000	Built for business and commercial payments	¹²³⁰²²
Remitly	US business clients already using Remitly	No fee for the receiver; sender pays $3.99 below $1,000 and $0 at $1,000 or more on personal USD to INR transfers	Only through Remitly Business, which is for US-registered businesses and businesses in Canada; no FIRA or purpose code published	²³²⁴⁴⁴²³¹²⁵
Western Union	Personal remittances to family in India	Not published on its India receive page	US terms limit accounts to personal use; MTSS excludes trade related remittances	²⁶²⁷²
Wise	Bank transfers to local account details	2 USD equivalent per transfer (help article); free e-FIRC (receive pricing page); 6.11 USD per USD wire or Swift payment on the general business fee table	Built for export receipts through Wise Business	¹³³²²⁸

For receiving Western Union money to a bank account, its India page asks for the account number, IFSC and the purpose of remittance.²⁶

Which option is cheapest at $500, $2,000 and $5,000?

The cheapest option for a US client's payment changes with invoice size, because flat fees weigh more on small invoices and percentage fees on large ones.¹²¹⁰ The table works out the INR received on published fees at today's rate.

Platform	Best for	INR on USD 2,000	INR on USD 5,000	INR on USD 10,000	Cost on USD 5,000
SkydoMost INRTransfer to Skydo local account details or international SWIFT account	Local bank transfers from major markets	₹1,86,373	₹4,67,991	₹9,39,206	0.68%
Karbon BusinessBank transfer to a Karbon virtual USD account	US bank transfers and marketplace payouts	₹1,86,262 to ₹1,86,601	₹4,65,655 to ₹4,66,503	₹9,31,311 to ₹9,33,007	1.00 to 1.18%
RazorpayMoneySaver Export Account: bank transfer to virtual account details (Standard plan)	Local transfers from the US, UK and eurozone	₹1,86,262 to ₹1,86,601	₹4,65,655 to ₹4,66,503	₹9,31,311 to ₹9,33,007	1.00 to 1.18%

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

Ranked by INR received on USD 5,000. 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 published fees a USD 2,000 bank transfer costs about 1.00 to 1.18% with Razorpay or Karbon Business and about 1.12% with Skydo, and at USD 5,000 Skydo works out to about 0.68%.¹⁰¹⁴¹²¹⁹ On a USD 500 invoice, Razorpay's flat ₹1,000 and Skydo's USD 19 are each a larger share of the payment.¹⁰¹²

What documents and GST apply to payments from the US?

A payment from a US client for services is an export of services when all five conditions in section 2(6) of the IGST Act hold, and it is then zero-rated.⁷³³ On the US side, services performed outside the US are generally foreign-source income for a non-resident alien and not subject to US withholding.³⁴

Document or rule	What it does	When	Best for
Export of services test, IGST Act section 2(6)	Five conditions: supplier in India, recipient outside India, place of supply outside India, payment in convertible foreign exchange (or INR where RBI permits), and the two not merely establishments of one person⁷	Before you invoice	Checking a new foreign client
Letter of Undertaking (LUT) in FORM GST RFD-11	Lets a registered supplier invoice exports without IGST; deemed accepted when the ARN is generated³⁵³³	Once for each financial year	GST-registered freelancers and firms
Export Declaration Form (EDF)	Declares the export to your authorised dealer (AD) bank; one EDF can cover a month's invoices⁵	Within 30 days from the end of the invoice month, or for non-software services on or before the payment date⁵	Every service exporter from 1 October 2026
Purpose code	Tells the bank what the receipt is for, as a five-character code starting with P²⁹	When the money arrives	Matching the receipt to the service
FIRA, FIRC or e-FIRC	Advice or certificate showing the foreign payment reached India, usually with the rate and purpose code	For each receipt, from the bank or platform	Matching each payment to its invoice
e-BRC	Self-generated by the exporter on the DGFT portal from the bank's inward remittance (IRM) data³⁶³⁷	After the bank reports the receipt	Proving realisation for GST refunds and schemes
Rule 96A, CGST Rules	IGST with interest becomes payable if payment is not received within one year of the invoice, or the FEMA period with any extension, whichever is later³⁸	Tracked per invoice	Exporters with slow-paying clients

Form W-8BEN: a non-US individual gives Form W-8BEN to the payer that asks for it; entities use W-8BEN-E.³⁹
Purpose code mismatch: a personal remittance code such as P1301, Inward remittance from Indian non-residents towards family maintenance and savings, does not describe an export of services.⁴⁰

What changes in 2026 for exporters paid from the US?

The 2026 changes for exporters paid from the US are the FEMA export regulations with the EDF from 1 October 2026, the nine-month realisation period, and updates to RBI's MTSS and drawing arrangement directions.⁵⁶²⁸

Change	From	What it means	Best for
FEMA (Export and Import of Goods and Services) Regulations, 2026	1 October 2026	Replace the 2015 export regulations for goods and services⁵	Every exporter
EDF for all services	1 October 2026	Every exporter of services gives an EDF to the AD bank, not only software exporters⁵	Freelancers and agencies new to the EDF
Realisation period	1 October 2026	Nine months from the invoice date, or twelve months if invoiced or settled in rupees⁶	Exporters with long payment terms
Income-tax Act, 2025	1 April 2026	"Tax year" replaces previous year and assessment year; tax year 2026-27 runs from 1 April 2026 to 31 March 2027⁴¹	Everyone filing income tax
PA-CB cap and list	Master Direction of 15 September 2025	Each cross-border aggregator transaction is capped at ₹25 lakh; RBI's list as on 16 October 2026 names the authorised entities⁹¹	Anyone choosing a payment platform
RBI Master Directions on MTSS and drawing arrangements	Updated as on 29 September 2026 and 1 October 2026	MTSS still excludes trade related remittances; drawing arrangements still cap trade transactions at ₹15,00,000²⁸	Exporters whose clients use money transfer companies

Wise: authorised as a PA-CB for inward transactions on 12 March 2026.¹

Confirm the right route for your contracts with your bank and 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

How do I receive money from the USA to India for freelance work?+

For freelance work, a US client can pay USD to account details from a platform such as Razorpay, Skydo or Wise, or wire money to your Indian bank.¹⁶²²¹³ On published fees for USD 2,000, Razorpay and Karbon Business cost about 1.00 to 1.18% and Skydo about 1.12%.¹⁰¹⁴¹²

Can I receive client payments in India through Western Union?+

Western Union is listed by RBI as a Money Transfer Service Scheme operator, and MTSS allows only personal remittances such as family maintenance, excluding trade related remittances.¹² Western Union's US terms also limit accounts to personal use.²⁷ It is not a route for export payments.

Can a US client pay an Indian freelancer through Remitly?+

A US client can pay an Indian freelancer through Remitly Business, which is for US-registered businesses with a US-resident account holder; Remitly's Canada site says it is also available to businesses in Canada.⁴²⁵⁴² The personal service bars business use.³ Remitly's pages do not mention a FIRA or purpose code for the Indian recipient.²⁵³¹

What is the RBI limit on Western Union money received in India?+

Under RBI's Money Transfer Service Scheme, each remittance is capped at USD 2,500, amounts up to ₹50,000 may be paid in cash, and a single beneficiary can receive 30 remittances in a calendar year.² Larger amounts must be paid by cheque, draft or bank credit.²

Is money received from the US taxable in India?+

Money a resident of India earns from US clients is taxed in India, under the Income-tax Act, 2025 from tax year 2026-27.⁴¹ On the US side, services performed outside the US are generally foreign-source income for a non-resident alien and not subject to US withholding.³⁴ Confirm your position with a chartered accountant.

Does a Wise payment from the US come with a FIRA?+

Wise says it emails an e-FIRC for each transfer to the registered address within 3 working days, downloadable from the transfer page.¹³ Wise Payments India Private Limited is listed by RBI as a payment aggregator for inward cross-border transactions, authorised on 12 March 2026.¹

Which purpose code applies to a payment from a US client?+

A payment from a US client carries the code for the service, such as P0802 for software consultancy, P1006 for business and management consultancy or P1007 for advertising.⁴⁰ Codes under RBI Circular No. 84 of 2012 are five characters starting with P.²⁹ Family maintenance codes describe personal remittances.

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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