Inward remittance means receiving money from abroad in your bank account in India. However, inward remittance, especially foreign payments aren't as straightforward as a domestic transfer due forex rate, RBI guidelines and international systems.&nbsp; In this blog, we’ll break understand what inward remittance is, what are the rules, charges, and timelines around it. So let us begin!&nbsp;&nbsp;

Inward remittance is simply money sent to your bank account in India from someone living abroad. It could be funds from an NRI family member helping with education or medical bills, or even a foreign employer or client paying your salary or invoices.

The money arrives in foreign currency and gets converted into Indian Rupees at the current exchange rate. Whether it’s personal support or business payments, understanding how inward remittance works makes it easier to manage and maximize what you receive.

What are the Rules and Guidelines for Receiving&nbsp; Inward Remittance in India?

Since inward remittance involves movement of money across national borders, it comes with its own set of rules and guidelines.&nbsp;In India, the RBI and <a href="https://enforcementdirectorate.gov.in/fema">FEMA</a> (Foreign Exchange Management Act) have set out <a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance">specific guidelines</a> for receiving inward remittances in India:&nbsp;

<a href="https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/1061.PDF">&nbsp;Only Authorised Dealer Category I&nbsp;</a>(AD Cat I) banks are allowed to receive foreign inward remittances in India.&nbsp; The AD Cat I banks are financial institutions that hold a license issued by the Reserve Bank of India (RBI) to buy and sell foreign currency for capital and current account transactions.

Each foreign inward remittance must contain a<a href="https://www.skydo.com/blog/rbi_purpose_code_for_inward_remittance"> purpose code.</a>&nbsp;The code defines the purpose of inward remittances like education, investments, remuneration, travel, insurance and more.&nbsp;For example:

If your inward remittance is payment for selling goods/services abroad then it must be accompanied by an FIRA. <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRA&nbsp;</a>is proof that you have received a <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">foreign payment </a>in India and is issued by the AD Category I banks.

Transfers related to lottery winnings, gambling, and other illegal activities are prohibited under FEMA guidelines.

For most foreign inward remittances, there’s no<a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance#do-you-have-to-pay-tax-on-remittance"> tax liability</a> in India. However, if the remittance is income from sources like investments, salary, or business, it will be taxed according to your applicable income tax slab rate.

We've briefly touched on the compliance requirements associated with inward remittance. You can find the <a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance">detailed explanation of the compliance requirements here</a>

What Documents Are Required for Receiving Inward Remittance in India?&nbsp;

While receiving your inward remittance, you may need to furnish the followig documents

You fall into this category if you’re an exporter, freelancer or someone who provides services to international clients. Here’s the document list:

You can find a detailed explanation of the<a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance#what-are-the-documents-required-for-inward-remittance-in-india"> documents required for inward remittance in India right here</a>

How Do You Receive Inward Remittance in India?

There are three primary means to receive foreign inward remittances in India:

Let’s explore each medium and the steps in collecting inward remittances in India.&nbsp;

Banks are one of the most popular ways of transferring money from overseas to India. To receive inward remittance you must share your Indian bank account details like account number, bank and branch name, and <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT code</a> with the sender. You can find the<a href="https://www.skydo.com/swift-code-finder"> SWIFT code of your bank right here.&nbsp;</a>

<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal supports</a> over 100 currencies and has gained popularity in India as a medium to receive inward remittances. You can use the PayPal website or download their app to receive foreign remittances. Link your bank account to PayPal, so that you can withdraw money when you like.

I<a href="https://www.skydo.com/blog/virtual-account-numbers">nternational virtual accounts</a> are like digital gateways linked to your real bank account. They don’t store money themselves—when funds are credited, they’re transferred to your bank account. With platforms like Skydo, you can use virtual accounts to receive payments in different foreign currencies, making cross-border transactions simple and hassle-free.

The cost of processing inward remittances varies across banks and can include charges like SWIFT fees, forex markups, and additional service fees. For business payments, it’s crucial to understand these charges, as they are often borne by the recipient.

Here’s a breakdown of inward remittance charges at popular Indian banks:

Understanding these fees can help you plan your payments better and avoid unexpected deductions.

PayPal Charges for Receiving Inward Remittance

PayPal also comes with a hefty price tag for receiving foreign remittances in India especially when it comes to business payments. It charges a flat 4.4% transaction fee on every transaction. Additionally, you have to bear a fixed fee, which depends on the currency and a currency conversion fee of 4% on the current exchange rate. To get an in-depth explanation of each charge, check out our blog on<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives"> PayPal India Charges</a>.

International virtual accounts Charges for Receiving Inward Remittance

Virtual accounts do not charge SWIFT fees because it’s treated as a local transfer making it a more affordable option. Here’s a quick breakdown of how much Skydo charges for receiving international payments via virtual accounts:&nbsp;

With Skydo, for payments up to USD 2,000, you pay $19. For payments between 2,000 to 10,000, you pay $29 and for payments above USD 10,000 only 0.3% fee is levied. So for a USD 5000 inward remittance, you can expect to receive INR 5,424 more compared to banks and INR 32, 862 more compared to PayPal.

Is There Tax on Inward Remittance in India?

Are you supposed to<a href="https://www.skydo.com/blog/decoding-gst-on-foreign-exchange"> pay taxes on inward remittances</a>? According to the income tax rules for international remittances, it depends on the purpose of the remittance. We have covered three different scenarios to give you a snappy overview:

Find out <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">how to receive foreign payments in India.</a>&nbsp;

How Much Inward Remittance is allowed in India?

According to the framework set by RBI for<a href="https://www.skydo.com/blog/online-payment-gateway-service-provider-opgsp?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link"> Online Payment Gateway Service Providers</a> (OPGSP), there are no limitations on personal transfers.&nbsp; However, <a href="https://www.rbi.org.in/commonman/English/scripts/FAQs.aspx?Id=1692#:~:text=There%20is%20no%20limit%20on,lakh%20for%20trade%20related%20transactions.">as per RBI</a>, there is a cap of INR 15.00 lakh for trade-related transactions.

Receive Business Inward Remittance Seamlessly with Skydo

For an exporter or a freelancer, paying hefty charges for inward remittances is a huge loss to their earnings. They deserve a platform that offers transparent pricing and advanced features for invoicing.<a href="https://www.skydo.com/"> Skydo</a> fits the requirements perfectly and is a trusted partner for business owners looking to scale their revenue from international clients.

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Foreign Remittance in India

SWIFT money transfer is the most popular way to send and receive money across borders.&nbsp; The Society for Worldwide Interbank Financial Telecommunications (SWIFT), a member-owned cooperative, ensures secure and reliable transactions worldwide. It is important to understand that SWIFT is not a bank that holds money. Rather it is a messaging network that facilitates the movement of funds across borders.&nbsp;

 In this blog, we’ll understand how SWIFT operates and its significance in global payments, as well as explore faster and more cost-effective alternatives.

What is SWIFT Money Transfer and How Does it Work?

Back in 1973, 239 banks came together to create SWIFT—a secure messaging network that helps banks communicate and process international transactions smoothly.

It is like a global banking language that ensures money transfers happen safely and efficiently across borders. Today, most countries rely on SWIFT for secure cross-border payments.

In simple terms, when you hear "SWIFT money transfer," it’s just another way of saying an international wire transfer that happens through the SWIFT network.

Let’s break it down with an easy example!

Say you're an exporter in Bangalore with an Axis Bank account, and a US client wants to pay you via SWIFT. They’ll need your account number and branch-specific SWIFT code.&nbsp;

The client’s bank, Bank of America, sends a secure SWIFT message to Axis Bank, instructing them to process the payment. Once received, Axis Bank credits the amount to your account

A SWIFT code is a unique 8- or 11-character alphanumeric identifier assigned to banks and financial institutions and it is a very important aspect of SWIFT money transfer. It contains essential information about the institution’s country, location, and branch.

Here is the breakdown of two SWIFT codes for a better understanding:&nbsp;

SBININBB101: This unique code refers to the State Bank of India’s Mumbai office. "SBIN" is the bank code, "IN" stands for India, "BB" indicates Mumbai, and "101" denotes the branch in a specific locality.&nbsp;&nbsp;

DEUTDEFF500: This SWIFT code belongs to Deutsche Bank's Frankfurt branch in Germany. "DEUT" represents the bank, "DE" is for Germany, "FF" signifies Frankfurt, and "500" indicates the specific branch at Bad Homburg, a town in the Frankfurt region.&nbsp;&nbsp;

&nbsp;SWIFT money transfers are widely regarded as safe. The SWIFT network is trusted globally for secure international financial transactions. Here's why:

Strong Encryption: SWIFT uses encryption to protect your transaction details, making sure that only the intended bank can see the information.

Tight Access Control: Not just anyone can use the SWIFT network—only verified banks and financial institutions have access, minimizing the risk of unauthorized transfers.

Global Trust: SWIFT adheres to international regulations, which helps ensure that your transfer is handled according to the highest standards.

Fraud Monitoring: The system constantly monitors for unusual activity to help prevent fraud before it happens.

While the SWIFT network is highly secure, it's crucial to double-check the details you provide to avoid errors or delays.

Step-by-Step Process of Making a SWIFT Money Transfer

Making a SWIFT transfer is similar to a local bank transfer but requires some extra details. Here’s how to do it:

Contact your bank or log in to your online banking portal to start a SWIFT transaction. You’ll need to provide the recipient’s name, bank name, address, unique SWIFT code, currency, and the transfer amount.

Your bank will verify the details and check if you have sufficient funds.

Once everything is verified, the bank will debit the amount from your account and provide a confirmation message or reference number.

The funds are then sent via SWIFT to the recipient’s bank. After verification, the recipient's bank will credit the amount to their account.

What Are the Charges for a SWIFT Money Transfer?

Broadly, <a href="https://www.skydo.com/blog/why-was-a-certain-amount-deducted-from-my-swift-payment">SWIFT charges</a> can be broken down under the following heads:

It's important to clarify that SWIFT&nbsp; fees vary by bank. Each institution sets its own charges for outward transfers. Here are some popular Indian banks and their SWIFT charges:

<a href="https://www.icicibank.com/personal-banking/accounts/outward-remittance/wire-transfer?no_follow=true">Source</a>

<a href="https://www.hdfcbank.com/personal/pay/money-transfer/remitnow/fees-and-chargesno_follow=true">Source</a>

PNB’s SWIFT money transfer fee stands at INR 500 + GST. However, it is worth mentioning that additional commissions ranging from INR 500-1000 may also be levied depending on the amount that is being sent abroad.&nbsp;

Yes Bank’s charges for SWIFT money transfers depend on the type of savings account you have. The following table shows the different types of YES savings accounts and their corresponding SWIFT charges:

How Long Does a SWIFT Money Transfer Take?&nbsp;

While <a href="https://www.swift.com/news-events/press-releases/swifts-cross-border-payments-processing-speed-surpasses-g20-target" target="_blank">SWIFT claims</a> that 89% of international transactions are processed within an hour, that doesn't tell the full story. The clock only starts when the sender’s bank sends the payment to the SWIFT network and stops when the receiver’s bank acknowledges it. After that, your bank will contact you for ‘disposal instructions.’ This may require you to submit documents, fill out forms, or deal with forex rate fluctuations. As a result, the entire process can take up to 5 business days or more, with additional delays caused by factors like:

Therefore, it is always a good idea to double-check relevant information to receive your SWIFT payments in a timely manner.

SWIFT vs. Other Money Transfer Methods: Which is Better?

While the SWIFT payment system is the go-to for cross-border money transfers, its high costs and longer processing times have prompted businesses to seek alternatives. One viable solution is i<a href="https://www.skydo.com/blog/virtual-account-numbers">nternational virtual bank accounts.</a> Platforms like Skydo offer businesses free virtual accounts in major regions, including the US, UK, Europe, Canada, Australia, and Singapore. These virtual accounts operate like local bank accounts, allowing businesses to receive payments via local transfers instead of incurring SWIFT fees.

For instance, if your client is in the US, they can make a local transfer to your US-based virtual account, avoiding SWIFT fees and delays. Skydo consolidates these payments and transfers the funds to India at live forex rates, ensuring exporters receive the full amount without losses from unfavourable exchange rates. The converted funds are deposited directly into your local Indian bank account within 48 hours, providing a fast, cost-effective, and transparent alternative to SWIFT.

In conclusion, while SWIFT money transfers remain a popular choice for international transactions, alternative solutions like virtual bank accounts offer speed and cost savings. Consider switching to Skydo for a seamless payment experience.

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SWIFT Money Transfer Guide 

In today’s global world, international payments are the lifeline of many businesses. Stripe has been a popular choice for Indian companies. However, its recent move to go "<a href="https://support.stripe.com/questions/how-can-i-open-a-stripe-account-in-indiahttps://support.stripe.com/questions/how-can-i-open-a-stripe-account-in-india?no_follow=true">invite-only</a>" in India, coupled with its high fees and limited payment options, has prompted many Indian businesses to explore Stripe alternatives.

Here are some of the popular Stripe competitors that Indian businesses can explore to receive international payments:&nbsp;

Below, we’ll explore the top 5 Stripe alternatives for Indian businesses, including their fees, features, and how they compare to Stripe.&nbsp;

Before diving into Stripe alternatives, let's take a moment to understand <a href="https://www.skydo.com/blog/stripe-india-charges-review-alternatives#:~:text=Stripe%20India%20charges%20a%204.3,settlement%2C%20invoicing%20features%20and%20more.">what Stripe is</a>. Stripe is an Irish-American payment platform that helps businesses receive international payments in over 135 currencies. But it’s not just about payments, it’s like an all-in-one financial toolkit. From invoicing and subscription billing to accounting automation and tax management, Stripe provides a range of features to make managing your business finances easier.

Top 5 Stripe Alternatives | Pros, Cons and Pricing&nbsp;

Skydo simplifies cross-border payments for Indian businesses and freelancers, no matter their size. Fully compliant with RBI regulations, it provides virtual international bank accounts in just a few minutes, for seamless global transactions making it a solid Stripe alternative.&nbsp;

Skydo offers a practical, cost-effective solution for managing international payments, with a few limitations depending on your specific needs, making it a solid Stripe alternative.&nbsp;

Since 2005, Payoneer has been a popular choice for businesses and freelancers worldwide. With virtual accounts in multiple currencies and integrations with platforms like Fiverr and Walmart, it’s a strong contender as a Stripe alternative for receiving international payments in India.

Payoneer is a solid stripe alternative for international payments with its marketplace integrations and virtual accounts, but its fees and inconsistent support may not suit everyone’s needs.

Wise for Business: A Viable Stripe Alternative for Freelancers and Small Businesses

Formerly known as TransferWise, Wise is a global payment platform available in over 80 countries. Initially launched as a peer-to-peer remittance service, it has since expanded to support business payments, making it a compelling Stripe alternative for receiving international payments in India.

Wise is a great option for freelancers and small businesses seeking a transparent, cost-effective alternative to Stripe, but its additional fees and occasional support challenges are worth considering.

PingPong: A Suitable Stripe Alternative for Ecommerce

PingPong is designed to simplify international payments for freelancers, businesses, and e-commerce sellers. With virtual accounts in multiple currencies and tax compliance support for VAT/GST at no additional cost, PingPong stands out as one of the leading Stripe alternatives in the market.

PingPong offers a straightforward, affordable solution for managing international payments, but its hidden forex fees and limited support may be drawbacks for some businesses.

PayPal: A Globally Accepted Stripe Alternative

PayPal is a globally recognized platform for both personal and business transactions. Its credibility and widespread acceptance make it a reliable alternative to Stripe in India.

PayPal remains a trusted and comprehensive Stripe alternative, but its high fees and limited features in India may not suit every business.

A Quick Comparison of Stripe India and its Alternatives&nbsp;

Let's quickly compare the Stripe alternatives against Stripe and see how they fare on factors like pricing, compliance and more.

Finding the right payment partner is essential for your business. Hidden charges like forex markups, currency conversion fees, and the lack of FIRA can make international transactions unnecessarily expensive and cumbersome. When evaluating Stripe alternatives for your cross-border payments, here are key factors to keep in mind:

International payment costs can vary significantly. Choose a provider that offers competitive rates with no hidden fees, ensuring you retain more of your earnings.

Managing global payments should be hassle-free. Look for a platform that’s easy to navigate and backed by responsive customer support for a stress-free experience.

Cross-border transactions require strict compliance with regulations. Opt for a platform that’s RBI-compliant, simplifies documentation, and ensures secure, lawful transactions.

Skydo stands out as a reliable alternative to Stripe, offering a fast, cost-effective, and secure solution for receiving international payments. Switch to Skydo today and elevate your global payment experience with unparalleled value and ease

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Indian exports have shown remarkable resilience, achieving an impressive<a href="https://economictimes.indiatimes.com/news/economy/foreign-trade/indian-exports-up-in-115-nations-out-of-238-destinations-in-2023-24/articleshow/109978944.cms?from=mdr#:~:text=Despite%20global%20economic%20uncertainties%2C%20India's,services)%20reached%20USD%20778.2%20billion."> USD 778 billion in 2023 </a>despite global economic uncertainties. However, as exports grow, one critical challenge continues to hold exporters back—cross-border payments.

Managing B2B cross-border payments in India can be complex, with high fees, delayed settlements, and compliance hurdles making life harder for exporters. But it doesn’t have to be this way.

In this blog, we’ll explore what cross-border payments are, the key challenges exporters face, and how Skydo is simplifying cross-border payments in India, helping businesses save time, money, and stress.

Cross-border payments are transactions where the payer and the recipient are located in different countries. For example, if an Indian exporter receives a payment from a French client or you purchase an item from an international seller, these are considered cross-border payments.

Cross-border payments can be broadly classified into two categories:

These occur when a business in one country makes a payment to a business or service provider in another country. For instance, if you’re an Indian freelancer receiving payment from a US client for graphic design services, that’s a B2B cross border payment.

These refer to B2C transactions, where an individual consumer buys a product or service from an overseas seller. For example, purchasing electronics or apparel from an international e-commerce store falls under this category.

Despite the growing exchange of goods and services globally, cross border payments remain riddled with challenges. Long delays, high costs, and regulatory complexities often make these transactions frustrating and inefficient. In the following sections, we’ll dive into the key challenges exporters face and how they can be addressed.

What Are the Challenges of Cross Border Payments in India?

While domestic payments in India are now as simple as a quick UPI scan, cross border payments tell a completely different story. For exporters and freelancers, these transactions come with significant hurdles that can complicate cash flow and eat into earnings. Let’s dive into the main challenges:

Together, these challenges make cross-border payments a time-consuming and costly process for many exporters and freelancers in India. Addressing these issues is essential for smoother and more cost-effective global transactions.

How Skydo is Simplifying Cross Border Payments for Indian Exporters and Freelancers&nbsp;

Skydo is tackling the challenges of cross border payments head-on with its innovative virtual international accounts. These accounts provide exporters and freelancers with virtual bank accounts in key markets like the US, UK, and Australia. Clients in these countries can send payments as local transfers, eliminating the high costs and delays of traditional international transfers. Skydo consolidates these local payments and transfers them directly to the recipient’s personal bank account in India.

Here’s how Skydo addresses the key challenges of cross-border payments:

Skydo is designed to make cross border payments faster, cheaper, and stress-free for Indian exporters and freelancers. With no hidden fees, quick settlements, and a focus on compliance, Skydo is the smarter choice for managing your international transactions seamlessly.

Cross Border payments and how to receive them with Skydo

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Karbon Business (formerly Karbon Card) hit the market in 2019, aiming to simplify B2B payments for Indian businesses and freelancers. They’ve since expanded into international payments too. But what exactly does Karbon bring to the table? In this blog, we’ll break down their features, pricing, and how they stack up against alternatives. Let’s dive in!

What does Karbon Business (Formerly Karbon Card) do?

Karbon Business initially started as a corporate card platform, hence the name Karbon Cards. However, since then they have expanded into other b2b offerings including facilitating international business payments for companies and freelancers. It offers both inward and outward remittance services. Let's take a quick look at Karbon Card’s offerings, compliance and pricing:&nbsp;

Karbon Business lets freelancers and businesses receive international payments directly into their Indian bank accounts within 24-48 hours. They’ve partnered with big names like IDFC Bank, Visa, and JP Morgan Chase to streamline cross-border transactions.

But here’s the catch: Karbon business <a href="https://www.karboncard.com/accept-international-payments-india">only supports payments in USD</a>. If you work with clients outside the US, this could be a deal-breaker. While they plan to add 12 more currencies soon, it’s still a limitation for many global businesses today.&nbsp;

With Karbon,&nbsp; businesses make international payments in over 30 currencies. Whether it’s paying employees, contractors, or vendors abroad, Karbon promises a competitive and compliant way to make cross-border payments.&nbsp;&nbsp;

Karbon Business provides corporate cards and payout services tailored for businesses. With Karbon Card, you get up to ₹15 Cr in free credit and unlimited employee cards. Their Karbon Payouts feature enables vendor payments on credit, 24/7 payouts, and more, offering flexibility for business transactions.

Karbon Business is a reliable option for receiving international payments in India. It is backed by partnerships with trusted global institutions and adheres to strict safety and privacy protocols to protect your funds.

Coming to compliance, Karbon Business also offers&nbsp; <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRA for each transaction</a>.

What is Karbon Business (Formerly known as Karbon Cards) Fees?

Karbon Business offers live forex rates with a <a href="https://www.karboncard.com/accept-international-payments-india">flat 1% fee</a> for receiving international payments. While the pricing sounds competitive, the costs can stack up quickly for larger transactions. For example, receiving $10,000 would cost you ₹8,449 in fees.&nbsp;

For outward remittance too, Karbon business charges a <a href="https://www.karboncard.com/outward-remittance-india">fee of upto 1%</a>.&nbsp;

Here’s a quick overview of the pros and cons of Karbon Business as a means to facilitate international transactions:&nbsp;

Karbon Business Alternatives for Receiving International Payments&nbsp;

Now that we’ve explored Karbon Business, its fees, and features, let’s dive into some alternatives to see if there’s a better option for receiving international payments.

Founded in 2005, <a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees">Payoneer</a> is a leading payment solution for businesses and freelancers worldwide. It facilitates international transfers by providing users with virtual bank accounts in multiple currencies and integrating with leading marketplaces like&nbsp; Amazon and Walmart&nbsp;

In terms of fees, Payoneer offers free account setup, but transaction fees apply: Payoneer-to-Payoneer payments are free, <a href="https://www.payoneer.com/en-in/about/pricing/">credit card payments</a> incur a 3.2% + $0.49 fee, ACH Bank Debits (US) cost 1%, and virtual account payments are free for EUR/GBP but up to 1% for USD.&nbsp; Withdrawals to local bank accounts attract up to a<a href="https://www.payoneer.com/en-in/about/pricing/"> 3% fee for different currencies.</a> Extra charges like bank or intermediary fees may apply. An annual fee of $29.95 is charged if total payments received are below $2,000 in a year.

To simplify compliance, Payoneer offers free digital FIRAs to Indian businesses and freelancers. However, some users have expressed dissatisfaction with <a href="https://www.g2.com/products/payoneer/reviews/payoneer-review-5364712">Payoneer's customer support</a>&nbsp;

Skydo is a global payment solution designed to simplify cross-border payments for freelancers and businesses in India. It offers virtual international bank accounts in under 5 minutes and provides a comprehensive payments ecosystem, including payment tracking, invoice generation, and more.

Skydo stands out with live Forex rates and zero currency conversion fees or hidden charges, offering a transparent fee structure that makes it a strong Karbon business alternative in India.

To ensure compliance with RBI and government regulations, Skydo provides free, instant FIRAs available for download after every transaction. Each user is also assigned a dedicated representative to assist with onboarding and address any queries promptly.

However, Skydo currently supports only inward remittances to India, meaning Indian businesses cannot use it for outward payments.&nbsp;

<a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">Wise (formerly TransferWise) </a>operates in over 80 countries, offering multi-currency accounts for individuals and businesses. Originally a peer-to-peer remittance platform, it has evolved into a global money transfer solution.&nbsp;

Wise stands out for using mid-market exchange rates without markups, charging a conversion fee averaging around 1-2% of the transfer value. It also provides <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">digital FIRAs </a>for compliance (e.g., $2.50 for USD transfers), making it a strong alternative to Karbon Business.

While <a href="https://www.skydo.com/blog/top_5_wise_alternatives_for_international_payment">Wise</a> boasts a<a href="https://www.forbes.com/advisor/in/banking/wise-review/"> user-friendly interface </a>and efficient transfers, some users have reported <a href="https://www.g2.com/products/transferwise/reviews?utf8=%E2%9C%93&amp;filters%5Bnps_score%5D=1#survey-response-9454134?no_follow=true">occasional challenges with customer support</a> responsiveness. Here’s a quick rundown of Wise’s pros and cons:

In today’s world, where domestic payments are as easy as a quick scan, international transactions should be just as effortless. At Skydo, we’re not just offering a payment platform—we’re building an ecosystem designed to simplify every step of the process. Let us take care of the payment logistics so you can focus on scaling your business globally.

Before choosing an international payment provider, always compare fees, exchange rate markups, features, and reliability. Your business deserves nothing but the best!

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International wire transfer is one of the most popular methods of cross-border payments. Rapid growth in India’s exports and globalization of the economy are two main driving factors for its popularity. In addition, it’s faster and safer compared to risky options like cash, checks, and demand drafts.

So if you’re curious about how international wire transfer works, the documentation process, duration, and fees, this blog is the right guide for you. 

An international wire transfer is just a way to send money across borders electronically—no physical cash involved. All you need is to share your bank account details with the sender, and the money moves directly from their account to yours.

Most of these transfers happen through the <a href="https://skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT network </a>(Society for Worldwide Interbank Financial Telecommunications). Think of SWIFT as a global messaging system for banks, helping them send money securely using unique SWIFT codes.

If you’re in India, you’ll need your bank account details and a <a href="https://www.skydo.com/blog/is-ifsc-and-swift-code-same">SWIFT code</a> to receive international payments, whether it’s for personal reasons or business..

How do International Wire Transfers Work?

Wire transfers operate by sending a secure message from the sender’s bank to the recipient’s bank, instructing them to deposit the specified funds into the recipient’s account. The sender pays for the transaction upfront, and the funds are transferred electronically. 

Upon receiving the message, the recipient’s bank deposits the funds into the recipient’s account. The two banks then settle the payment on the back end, ensuring a secure and efficient transfer process. This method ensures that the funds are transferred quickly and safely, making wire transfers a reliable option for sending money.

What Documents and Information Do You Need for an International Wire Transfer?

If You’re Receiving an International Wire Transfer: Provide the following details to the sender:

If You’re Sending an International Wire Transfer: In addition to the receiver’s details, you’ll need to provide accurate details about the recipient's bank:

Additional Documentation Requirements: Depending on the transfer amount or purpose, your bank may ask for additional documents:

How to Make an International Wire Transfer?

After having discussed the required documents, let’s see the different ways through which you can make an international wire transfer. One popular method is using an international money transfer service, which partners with digital wallets to facilitate secure and efficient <a href="https://www.skydo.com/blog/how-you-can-streamline-international-transactions-for-your-business">cross-border transactions</a>.

Transferring money using online banking services

This is the best option if your bank has online international wire transfer facilities or if you use a money transfer service. It saves your time from visiting the branch and you can do it from anywhere using an internet connection

These are current fees for some of the popular Indian Banks:

Keep in mind that while your bank may charge a single fee, additional costs can arise from one to three intermediary banks and the recipient’s bank. Additionally, the recipient may receive a reduced amount due to forex markups commonly applied by banks.

International wire transfer using a banking app or phone services

A banking app works like an online banking service. After downloading the app, you can log in and follow the same steps above. 

Few banks also offer phone banking services for wire transfers. In this method, you must call the call centre and share personal and banking details with the phone banking staff. They will guide you with the remaining steps.

International wire transfer by in-person visit to your bank

If your bank doesn’t offer online services for international transfers or you’re more comfortable with in-person visits, you can visit your nearest bank branch and follow the below steps:

International wire transfer using a third-party service provider

International money transfer service providers are not the only option to make international wire transfers. Several stand-alone platforms like <a href="https://skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal</a> and <a href="https://skydo.com/blog/transferwise-india-features-benefits-pros-cons">Wise</a> also allow you to make and receive international wire transfers and more often than not they can do it faster than banks. However, it is important to be aware of the charges that these platforms levy on international wire transfers including the exchange rate that they are offering.

Through Skydo, you can receive international wire transfers via SWIFT from over 150 countries that too at live forex rate.

Yes, international wire transfers are generally safe as they use secure networks like SWIFT, which rely on encryption and monitoring to protect transactions. However, there are some risks to be aware of. Once a wire transfer is completed, it cannot be reversed, so it’s essential to double-check the recipient’s bank details, including the SWIFT code, before you send money overseas. Additionally, while the transfer process is secure, phishing risks can arise if the recipient’s details are compromised. Verifying all information beforehand can help ensure a smooth and secure transaction.

What Are the Compliance Regulations Around International Wire Transfers?

The <a href="https://skydo.com/blog/compliance-guideline-for-inward-remittance">Reserve Bank of India (RBI) monitors wire transfers</a> in India, ensuring compliance for sending money abroad. RBI implements compliance requirements based on the <a href="https://enforcementdirectorate.gov.in/fema">Foreign Exchange Management Act (FEMA), 1999</a>.

Some of the compliance regulations are as follows:

It’s mandatory to mention the <a href="https://skydo.com/blog/rbi_purpose_code_for_inward_remittance">purpose code</a> whether you’re sending or receiving an international wire transfer

What Are the Fees Charged by Indian Banks for International Wire Transfers?

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