Purpose code for outward remittance: RBI S-code list and how to choose one (2026)

A purpose code for outward remittance is a short code that tells your bank why money is sent outside India, whether that's your child's university fees or a supplier's invoice. Outward codes all start with the letter S, and you give one to your bank on the remittance form when you send the money.

The Reserve Bank of India (RBI) sets these codes under the Foreign Exchange Management Act (FEMA). You need one if you're a resident individual sending money abroad under the Liberalised Remittance Scheme (LRS), and so does your company when it pays an overseas supplier or service provider. Your bank checks the code against your documents before it sends the money.

Getting it right matters because the code becomes part of the declaration you sign and of what your bank reports to the RBI. If it doesn't match your documents, the bank may ask questions before it sends the money. For individuals, the declared purpose also decides which Tax Collected at Source (TCS) category applies.

An outward purpose code is a mandatory alphanumeric identifier under FEMA that classifies the reason for a payment leaving India. All outward codes belong to the S-series, and each one reads left to right: first the direction of the money, then a broad group, then one specific purpose. Take S0305:

So S0305 means outward, travel, education, and its official wording covers fees and hostel expenses. If you're receiving money rather than sending it, you need the RBI purpose code for inward remittance list instead, since those codes start with P.

You write the code on Form A2 when you remit, and it's reported again on Form 145 and Form 146 where they apply. Your Authorised Dealer bank (AD bank, one the RBI allows to handle foreign exchange) then reports the purpose, country and currency through FETERS, mainly so the RBI can compile India's Balance of Payments statistics.

The codes come from the RBI's FETERS purpose-code list, which banks print on their forms. The list took effect on 1 April 2012 and was amended in 2016. Older copies stamped "Withdrawn" still circulate online with outdated wording. So if a code you found elsewhere doesn't match your bank's current form, go with the form.

The RBI sorts outward codes by transaction type under FEMA. Capital account payments buy an asset or create a claim abroad, such as shares, property or a loan, while current account payments cover imports, services, travel and transfers. The split is explained in capital and current account transactions under FEMA, but you'll find your code faster by starting from who is paying.

LRS purpose codes for individuals sending money abroad

An LRS purpose code is what you use as a resident individual paying for study, treatment, travel or family abroad. The Liberalised Remittance Scheme is open to individuals only, so companies, partnership firms, HUFs and trusts can't remit under it.

Open any code for its own page: S0305, S1107, S1301, S1302, S1303, S0304, S1108, S0306, S0301 and S0303.

Purpose codes for businesses (commercial and current account remittances)

When your company pays an overseas supplier or service provider, the code describes what you're buying: goods, software, advice or a service that fits nowhere else. These are current account payments, and LRS plays no part in them because the scheme covers individuals only.

Open any code for its own page: S0101, S0102, S0802, S0807, S1006, S1004, S1007, S1002, S1011 and S1099.

Accounting and audit work, engineering services and market research each have a code of their own in the RBI's other business services group, so check that group before you settle on the catch-all S1099.

Purpose codes for investments and capital account transactions

Capital account codes cover money you send abroad to buy an asset or to make a loan. Portfolio codes are for shares and bonds you buy as an investor, while direct investment codes are for capital an Indian company puts into its own branch or wholly owned subsidiary abroad. For the difference in practice, read ODI vs OPI.

Open any code for its own page: S0001, S0002, S0003, S0005, S0011 and S0014.

S0014 is the odd one out, because it's a non-resident's own money going back abroad rather than an LRS payment by a resident. If you're not sure which account type the money sits in, compare NRE vs NRO vs FCNR before you pick the code.

To choose the right purpose code, start from what you're paying for, not who receives the money or how it's sent. Your bank confirms the final code on Form A2, so ask which one it will report before you send. If no service code fits a business payment, S1099 ("Other services not included elsewhere") is the catch-all.

Where the RBI's wording leaves room, as it does for student living costs, hospital bills and software subscriptions, banks fill the gap with their own practice. That's why the bank's answer is the one that counts, and why the documents you keep should match the code it reports.

How can I find my purpose code?

1. Name the payment in plain words: write down what the money is for, such as "second-semester tuition" or "the balance on a supplier's invoice", before you open the form.
2. Match it to the RBI wording: find the code in the individual, business or investment tables whose official description fits that payment most closely.
3. Confirm it with your bank: ask which code the bank will report, and keep the document that proves the purpose in case it asks.

Banks decide what to ask for case by case, but these are the papers they typically want for the most common payments, on top of the Form A2 every remittance needs. Service payments also need Form 145 or Form 146 where those apply.

Tuition fees, hostel and living costs for a student abroad

Three codes come up when you pay for a student abroad. S0305 is travel for education, and its wording covers fees and hostel expenses. S1107 is education, with correspondence courses as the RBI's example. The RBI's LRS reporting table lists studies abroad under S1107, travel for education under S0305 and maintenance of close relatives under S1301.

The RBI doesn't say how to split tuition from living costs, and banks apply these codes differently. So tell your bank what each part of the transfer is for (fees, hostel or a monthly allowance) and check which code it will report before you send. If an education loan from a bank or notified financial institution funds the fees, TCS on that part is nil.

Family support, a one-off gift or a donation to charity abroad

The RBI's LRS reporting table keeps gifts and donations apart, so the deciding question is what the money does once it arrives:

• Regular support for a close relative: S1301, family maintenance and savings, fits money you send every month to a parent or sibling abroad to cover their upkeep.
• A one-off gift: S1302, personal gifts and donations, fits a wedding or birthday gift, and banks expect it to go to an individual rather than to a company or to yourself.
• A donation to an institution: S1303 covers donations to religious and charitable institutions abroad, so money for a temple or a registered charity goes here.

All three count towards your yearly LRS limit, so add them up with your other personal remittances in the same financial year.

Hospital bills and travel for medical treatment abroad

Two codes overlap here. S0304 is "Travel for medical treatment". S1108, health service, covers payments for services from hospitals, doctors, nurses and paramedical staff, given remotely or on-site. The RBI's LRS reporting table lists medical treatment under S1108, and it also lists travel for medical treatment with the travel codes, which include S0304.

The RBI doesn't name a winner, and some banks treat a patient who travels differently from one treated remotely. Ask your bank which code it will report for each payment. The LRS limit of USD 250,000 per financial year covers treatment too, and for more than that, banks may release foreign exchange on an estimate from a doctor in India or a hospital or doctor abroad.

Software, SaaS and IT work paid to a foreign vendor

The RBI's list doesn't mention SaaS by name, and banks treat subscriptions differently. Four codes are in play, and the official wording of each is your best guide:

• S0802: software consultancy or implementation, for a foreign firm that builds, customises or sets up software for your business under a contract.
• S0807: off-site software imports, for ready-made software or a licence that an overseas provider delivers to you online.
• S1006: business and management consultancy and public relations, for advice from an overseas firm rather than software it supplies.
• S1099: other services not included elsewhere, for a service payment that none of the specific service codes describes.

Before you pay a recurring subscription, ask your bank which code it uses and keep the invoice with the agreement or licence. For the wider process of paying overseas suppliers, read about planning vendor payments.

Import advance payments and invoice settlement for goods

For goods, the code depends on when you pay. Money sent before the goods ship takes S0101, and money sent against the invoice after shipment takes S0102. Imports from Nepal and Bhutan use their own code, S0109, whether you pay in advance or after shipment.

If you split one order into an advance and a balance, each payment goes on its own Form A2 with its own code.

The full set of RBI purpose codes for outward remittance has 142 S-codes in 17 groups, numbered 00 to 17 with no group 04. Most payments use only a handful of them, so here's each group with a few codes to start from. Every S-code also has its own page in the RBI purpose codes directory, with the official wording.

More codes to explore: S0023, S0203, S0501, S0601, S0701, S0806, S0902, S1005, S1016, S1014, S1201, S1409, S1503, S1601 and S1701.

Your bank prints the same list on its outward remittance form, so that's the other place to check a code. Take care with life insurance in particular, because S0601 excludes term insurance and a term life premium sits under S0603 instead.

For individuals, TCS follows the purpose category you declare (education, medical treatment, an overseas tour package or anything else), not the code number itself. Here are the rates for remittances from 1 April 2026, as they stand in October 2026:

The ₹10 lakh threshold didn't change in Budget 2026-27. Separately, LRS caps what you can send at USD 250,000 per financial year, and the rules behind that foreign remittance limit are worth a read.

When you file your return, check that the TCS collected on your payment shows in your Form 168 (earlier Form 26AS), so you can claim the credit. For how banks collect it and how you account for it, read about TCS on foreign remittance.

Form A2 is the application you give your bank to buy or send foreign exchange. It states the purpose and the amount, and by signing it you declare that the money is for the purpose shown. Since two RBI circulars of 3 July 2024, banks have had to take a Form A2, physical or digital, for every cross-border remittance, whatever its value.

Under the same circulars, there's no cap on the amount you can send with an online Form A2. In October 2026, the RBI let banks approve their own internal Form A2 guidelines through their board or a delegated committee, but the form you fill in stays the same. Bank versions differ, but expect fields like these:

• Purpose of remittance: the purpose code and its description, which some banks pass on to the receiving bank inside the SWIFT message.
• Whether it's under LRS: a yes or no answer that tells the bank whether the payment counts towards your yearly limit as an individual.
• Country providing the service: asked for many service and travel codes, so keep the supplier's or institution's country ready before you start.
• PAN: your Permanent Account Number, which is mandatory for every remittance you make under the Liberalised Remittance Scheme.

Form 145 and Form 146 for remittances from 1 April 2026

For remittances made on or after 1 April 2026, Form 145 replaces Form 15CA and Form 146 replaces Form 15CB under the Income-tax Act, 2025. The filing thresholds stay much the same as before, and forms filed for payments made up to 31 March 2026 remain valid.

Form 146 asks for the RBI purpose code and sub-code (fields 24 and 25) from the RBI list, and Form 145 asks for the purpose from a fixed list. So make sure it matches the code you gave your bank on Form A2.

A CA's Form 146 is needed for a taxable payment to a non-resident above ₹5 lakh in the tax year. The older forms are explained in what is Form 15CA and 15CB.

A wrong purpose code for outward remittance means your bank reports the payment under the wrong purpose, since it reports whatever code you give it. If the outward remittance purpose code doesn't match your documents, your bank may ask for more proof before it goes ahead. For individuals, a wrong declared purpose can also put the payment in the wrong TCS category.

Banks handle corrections their own way, so treat these as the typical steps:

1. Contact your bank quickly: tell your branch or relationship manager as soon as you notice, and ask how it handles a change of purpose code.
2. Quote the transfer reference: give the UTR number, the code that was reported and the code that's right, so the bank can find the payment.
3. Send the proof: attach the invoice, admission letter or hospital estimate that shows what the payment was really for.
4. Follow the bank's route: the bank decides whether it can correct its own report or needs a fresh Form A2 from you.

A purpose code tells the RBI why money is leaving India, while the payment system decides how it travels. A cross-border transfer moves between banks over SWIFT, which carries the payment instruction, and some banks add your purpose code description to that message as extra information.

NEFT and RTGS are domestic systems that move rupees between Indian bank accounts, so they don't carry a payment abroad. The code doesn't change with the route either: a tuition payment is S0305 whether you start it in net banking or at a branch counter. For the wider difference between money coming in and going out, see inward remittance vs outward remittance.

Pick the code from what you're paying for, match it to the official RBI wording, and check it against the documents you'll show your bank. Where two codes look alike, tell the bank what each part of the payment is for and ask which code it will report.

Before you send, confirm three things: the code on your Form A2, the TCS category it puts an individual payment in, and whether Form 145 or Form 146 applies. If a wrong code still goes through, raise it with your bank quickly with the UTR and your proof of purpose.