Receive Money From Abroad for Business & Freelancers in India

The RBI recently reported that overseas Indians sent home a record-breaking $135.46 billion in remittances in FY 2025, a sharp 14% jump from 2024. India receives more money from overseas than any other country, a reflection of how deeply cross-border payments support its people, enterprises, and overall economy. 

But here’s the catch, while more money is coming in, the way it moves hasn't kept up. Transfers can drag on for days, bank fees quietly eat into your total, exchange rates shift without warning, and settlements don’t always land when you need them.

In this guide, we’ll explore the best ways to receive payments from abroad in 2025, ensuring more of that money reaches its intended destination: your bank account.

• Receiving international payments or inward remittance refers to funds transferred from someone overseas into an Indian bank account. These payments can arrive through SWIFT transfers, UPI Global, or fintech platforms such as Xflow. 

• Businesses and freelancers are starting to lean more towards fintech solutions for receiving international payments, as they offer faster settlements, lower bank charges, competitive exchange rates, and real-time tracking, which are some things that traditional banks often struggle to provide.

• Exporters, freelancers, remote workers, and SaaS businesses are choosing platforms with virtual accounts, instant FIRC, and accounting integration. These features are making receiving international payments faster and hassle-free. 

• Always choose RBI-approved platforms. They should have clear pricing, fast settlement times, and provide proper digital certifications like FIRC or FIRA, so you're always compliant and ready for audits.

Receiving international payments, known as inward remittances, is when funds are transferred from an individual or business overseas into your local bank account. These can be payments for services, product sales, or personal transfers from friends and family.

Sounds easy, right? But behind the scenes, it is a little more complicated. Each payment moves through global networks, is converted into the right currency, cleared for compliance, and in many cases, handed off between several intermediary banks before it reaches you. The outcome of this journey often depends on the purpose of the transfer, which is where the main types of inbound payments come in.

Inbound payment types usually fall into four major buckets:

Freelance payments: Earnings of independent professionals like writers, designers, developers, and consultants working with foreign clients. 

B2B invoices: Payments businesses receive from international clients for goods or services. 

Family remittances: Money sent by relatives working or living abroad to support family back home.

Global payouts: Bulk payments made by companies to remote teams, creators, affiliates, or freelancers worldwide.

When someone sends you money from overseas, it travels through payment rails: the networks that move funds between accounts within a country or across borders. Once it lands in India, the amount is converted into INR at competitive rates and added to your bank account. 

Thanks to automated compliance provided by certain fintech platforms, digital FIRC certificates are issued instantly, which saves time and avoids extra costs without the banking headaches.

Here’s how the process of receiving international inbound payments works:

Step 1: The very first step is deciding which payment method you want to use. It could be a bank transfer through SWIFT, a remittance service, a payment gateway, or a virtual multi-currency account. 

Step 2: Next, you’ll have to share your payment information with the sender, including IFSC, SWIFT/BIC code and account number in case of bank transfer, invoice link or email for payment gateways, and local-currency account details if you’re using virtual accounts by fintech platforms. 

Step 3: Clearly state the nature of the services or goods you’re exporting, or the specific reason for the remittance, so your bank can assign the correct purpose code to the transaction as required by the RBI.

Step 4: Once the payment is received, your bank or payment processor will issue an FIRC. This certificate serves as proof of the remittance and is essential during GST filing or accounting purposes. 

Step 5: After your international payment arrives, your payment provider will either convert it into INR immediately (using their exchange rate) or hold it in the original foreign currency in a special account until you choose to convert it. 

Following this, you can withdraw the funds converted to INR in your business or personal account. 

In 2025, the most common ways to receive money from abroad are SWIFT bank transfers, fintech platforms, UPI Global, and virtual accounts or wallets. Each comes with its own cost, speed, and compliance process. Let’s have a look at each one of them. 

1. SWIFT & correspondent banking

SWIFT has been the backbone of traditional banking for ages. Under the SWIFT system, a payment passes through multiple correspondent banks before it reaches your account. 

During this process, every intermediary involved in the transfer might charge a service fee, and the currency conversion usually happens at bank-determined rates, which are mostly less competitive than market rates. Because of these steps, the entire process can take anywhere from three to five business days to finish. 

2. UPI Global

UPI Global enables businesses to receive international payments directly into their Indian bank accounts through the familiar UPI network, with instant currency conversion. It is now live in markets like Singapore and the UAE. 

It allows direct transfers from overseas accounts to UPI-linked accounts in India. Once the sender’s bank supports UPI Global, the funds can arrive almost instantly in INR, eliminating the need for intermediary banks and lengthy processing times.

3. Fintech accounts

Platforms such as Xflow, Wise, and Payoneer provide users with virtual bank accounts in multiple currencies. Clients can pay into these accounts in their local currency, which is then converted at fair, transparent exchange rates. The INR equivalent is transferred to your Indian bank account within 1-2 business days. This method cuts down on both fees and settlement times.

4. Digital wallets

Digital wallets are applications meant for mobile devices, such as smartphones and tablets. These wallets store users' payment information and allow them to pay directly from their devices in place of using credit or debit cards.

While wire transfers via banks still depend on the traditional SWIFT network, which is slow, expensive, and crowded with intermediaries, fintech platforms and virtual accounts use modern infrastructure designed for speed, transparency, and greater value.

Let’s put them side by side and see how they compare:

Fintech platforms take the hassle out of receiving money from abroad. Payments arrive sooner, cost less to process, and come with exchange rates that stay close to the market rate. You can track every stage online and receive compliance certificates, without chasing banks or filling out forms. The result is quicker access to funds and more of the payment staying in your account.

As global business grows, so does the need for faster and cheaper ways to get paid. Fintech platforms help solve that. Here’s who gains the most:

Exporters get faster settlements, better exchange rates, and automatic FIRA or FIRC. That means fewer delays and less manual work.

Freelancers and agencies can open local receiving accounts, pay lower fees, and stay compliant. It makes getting paid by global clients much easier.

SaaS startups and remote teams use these tools for bulk payouts, real-time accounting, and smooth international payroll. 

In 2025, the best platforms for receiving money from abroad are the ones that strike a balance between speed, low fees, ease of use, and regulatory compliance. 

Here are some of the most reliable and popular solutions:

Xflow

Designed for funded startups, freelancers, exporters and enterprise companies, Xflow enables users to collect international payments directly into their local INR accounts. With real-time FX conversion, automatic FIRC generation, and compliance-ready transfers, it is built to simplify inbound payments while cutting costs. Here is what sets Xflow apart:

• Faster settlement times compared to banks and many platforms.
• Competitive FX rates with minimal markup, powered by its AI-driven FX engine. 
• Automated digital FIRC generation for instant proof of inward remittance. 
• RBI-approved payment aggregator
• Robust API infrastructure
• Bulk payouts & unlimited transactions to support large exporter volumes without hidden limits
• Automated reporting & custom workflows to tailor processes and simplify audit trails
• No limits on the volume of the transaction.

Wise

Wise (formerly TransferWise) offers multi-currency accounts and transparent mid-market rates. It is popular among freelancers and digital nomads who receive money from clients globally. Its key features include:

• Multi-currency accounts with local bank details in over 50 currencies
• Instant currency conversion at mid-market rates
• Transparent fee structure
• Fee-based FIRC generation 
• App-based transfer tracking

Revolut Business

Revolut Business offers global business accounts with features like currency exchange, local account numbers, and team expense cards. Here is what you get with Revolut:

• Great for startups and remote teams
• FX at interbank rates
• Automate payouts and integrate with accounting software

Remitly (for personal remittances)

Ideal for families sending money home, Remitly is a trusted remittance service with fast delivery options and low fees. The key features include:

• Supports transfer from over 170 countries
• Instant or same-day transfers
• Low fees for bank and wallet delivery
• 24/7 customer support

Payoneer

Payoneer is widely used by freelancers, e-commerce platforms, and SaaS platforms to receive cross-border payments. A few of its main features are:

• Local receiving accounts in USD, EUR, GBP, etc.
• Integrated with platforms like Upwork, Fiverr, Amazon and Airbnb
• Invoice creation and direct payment request tools
• Simple INR withdrawal to Indian banks

Banks with NOSTRO Tie-ups

Some private Indian banks (like HDFC, ICICI) offer NOSTRO-linked inward remittance services, allowing faster settlement through global correspondent banks. Some of their features include: 

• Competitive FX rates for large payments
• Still slower and costlier than fintech options
• Requires manual paperwork for FIRC

If you are trying to decide between a bank and a fintech platform, the gap in speed, cost, and convenience is hard to miss. Here’s how they stack up.

Verdict: In 2025, fintech wins on speed, cost, and clarity, making it the obvious choice for businesses, freelancers, and exporters.

The idea of receiving an international payment is great until the process kicks in. Here are some common challenges you might run into with inbound payments: 

1. High costs: Banks often add steep FX markups and charge high inward remittance fees, which means you end up with less in your account than expected.

2. Slow settlement: International bank transfers can take several days, especially when correspondent banks are involved.

3. Poor tracking: With a standard SWIFT transfer, it's difficult to track the status of your money or predict when it will arrive.

4. Paperwork hassles: RBI compliance rules mean you need FIRCs and 15CA/CB forms. In many cases, you have to request these manually.

5. Risk of failed payments: A small error in the account or beneficiary details can cause the transfer to bounce back, wasting time and money.

Once the payment hits your account, what’s next? It needs to be recorded, matched to invoices, and stay compliant, without hours of manual work. And that is what integration is all about. When your international payment platform directly links with your accounting and tax software, that’s known as integration. Here’s how this works:

Syncs payments automatically: With integrations across your workflows, there’s no more manual data entry. Payments show up in QuickBooks, Zoho, or Xero exactly when they land.

Matches payments to invoices: Each payment links to the right invoice on its own. That means faster bookkeeping and fewer errors.

Handles compliance paperwork: Documents like FIRCs and GST reports are generated automatically, eliminating the need to chase banks or fill out forms yourself.

Tracks cash flow live: See your available funds in real time. Know exactly what’s coming and going without guesswork.

XFlow’s API-driven Infrastructure

Xflow integrates directly with your accounting systems via APIs. This allows for automated reconciliation of payments, real-time tracking, and compliance processes that run in the background, removing the need for manual paperwork or follow-ups.

Getting paid from abroad is one thing. Staying on the right side of Indian tax and banking rules is another key consideration. Here’s a quick breakdown of what to watch for when handling international payments:

1. Follow FEMA guidelines for all foreign remittances

All cross-border payments come under the ambit of FEMA, 1999, with its guidelines enforced by the Reserve Bank of India (RBI). Stick to the regulations mandated by the Act to keep your cross-border transactions legal and above board.

2. Use RBI-approved channels 

Process payments through RBI Authorized Dealer Category 1 (AD 1) banks to avoid any compliance hiccups or delays. These entities supervise and report inward remittances to RBI through the Export Data Processing and Monitoring System (EDPMS).

3. Declare purpose codes for every transaction

Purpose codes clarify the reason behind each transfer. It could be for export services, freelance work, investment, or some other reason. They make it easier for regulators to track and approve your payments.

4. Collect FIRC or FIRA 

FIRC is a certificate of proof for your inward remittance. Keep this certificate handy as it serves as official confirmation that you have received foreign funds, essential for tax and audit purposes.

5. File a Letter of Undertaking

Submit a Letter of Undertaking when exporting services without GST. This lets you skip GST payments upfront, making the process smoother.

6. GST documentation

Keep all GST-related documents such as FIRCs, invoices, and contracts handy. They’re essential for accurate filing and to handle any compliance checks.

The landscape of cross-border payments is changing rapidly, and for the better. As technology and regulation evolve, here are some key trends to watch in 2025 and beyond:

1. Demand for real-time payments will grow

The push for instant transfers will only grow with businesses demanding speed and efficiency. Expect real-time FX locking at invoicing, so businesses know exactly what they’ll get before the payment even leaves, which means no more surprises on currency rates.

2. Cross-border systems will talk better

The global patchwork of payment networks is set to connect more seamlessly. Projects like BIS Nexus will help create smooth, cost-effective payment corridors between countries, making international transfers feel more local.

3. Regulations will tighten and evolve

Compliance won’t get easier, but more innovative tools will help businesses keep up. Expect tighter AML rules and more tax regulations aimed at cross-border payments. Staying on top of this will be crucial to avoid hiccups.

4. Transparency will be a must

Businesses will demand more precise tracking of fees, timing, and payment status. Real-time updates and detailed payment info will become standard, not optional.

5. AI will play a bigger role

AI-powered tools will be utilized to handle more tasks behind the scenes such as spotting fraud early, optimizing currency exchange, and automating compliance checks to keep payments secure and efficient.

These developments point to a future where global payments are faster, wiser, safer, and more transparent.

Following a few tried-and-tested practices can make the process of receiving funds from overseas faster, safer, and more cost-efficient. Consider the following steps to ensure every transaction works in your favour.

1. Authorized channels: Use RBI-approved banks or fintech platforms to receive international payments to ensure compliance and avoid payment holds. Ensure these platforms offer advanced features, such as real-time tracking, faster settlement times, and robust security measures.

2. Regulatory compliance: Foreign remittances are governed by RBI inward remittance rules and FEMA regulations. Stay updated on RBI and FEMA regulations to prevent disruptions caused by policy changes. Choose platforms that are in compliance with such regulations. 

3. Documentation: A Foreign Inward Remittance Certificate (FIRC) is essential for tax benefits and compliance. Opt for platforms that issue them automatically without any hassle or additional charges.

4. Purpose codes: Every payment must carry the correct purpose code. This code tells the bank exactly why the money is being transferred. Make sure you enter the correct code to avoid putting your funds on hold, extra scrutiny, or reversals.

5. Fees and exchange rates: Hidden bank fees and markup rates reduce your payout. Compare services and choose the one that offers transparent charges and mid-market linked FX rates. Additionally, look beyond exchange rates to include transfer fees, intermediary bank charges, and conversion spreads.

7. Accurate bank details: Small errors in account, IFSC, or SWIFT codes can cause failed transfers. Always double-check before sharing these essential details.

Xflow stands out by offering more than just a way to receive money from abroad. It’s built specifically for businesses, exporters, and freelancers who need fast, reliable, and transparent international payments. 

Xflow takes international payments a step further than traditional systems and other fintech solutions by making the process smoother and more efficient. Here is how Xflow stands out:

• All-in-one cross-border toolkit: Supports payments in multiple currencies with no invoice size limits and even cashback on processed funds. 

• Real-time perks: Live FX rates, transaction tracking, and free eFIRA generation reduce hidden costs, provide certainty, and speed up regulatory compliance. 

• Seamless integrations: Xflow plugs right into the tools you already use, from accounting software to invoicing platforms. You can even share payment links directly from the dashboard. That means less copy-pasting, fewer spreadsheets, and more time doing actual work. 

• Dedicated support: When something’s urgent, you don’t want to wait days for a reply. Xflow’s priority support is there when you need it, so issues get resolved quickly and you can keep your business moving.

Xflow eliminates long wait times and confusing fees that often come with traditional banking. Instead of juggling paperwork and tracking down funds, you get faster settlements and automatic compliance support. 

Startups, exporters, and other businesses benefit from platforms like Xflow as it can simplify your international payments, reduce compliance worries, and keep your cash flow steady, so you can focus on what matters most: growing your business.