How to pay suppliers in India from the US: dollars or rupees
To pay a supplier in India, collect its account name, account number, IFSC, bank and SWIFT code, then send US dollars by SWIFT wire to its EEFC or current account, or rupees as a local payout over NEFT or RTGS. State the purpose of payment and send dollar wires with OUR charges, because the supplier must realize the full export value in India within nine months. This guide covers the currency choice, details to collect, rails, cut-offs, holidays, published fees and returns.
- From 1 October 2026 an Indian exporter must realize export proceeds within nine months, or twelve months if the export is invoiced or settled in rupees, under notification FEMA 23(R)/(1)/2026-RB.
- An Indian supplier can credit up to 100% of its foreign exchange earnings to an EEFC account, but balances not used must be converted to rupees by the end of the following month.
- Section 2(6) of the IGST Act treats a service as an export only where payment is received in convertible foreign exchange or in rupees wherever the RBI permits it.
- SBI states that RTGS and NEFT both run 24x7, 365 days, with a Rs 2 lakh minimum for RTGS and credit to the beneficiary within 30 minutes of the message.
- Indian banks report an RBI purpose code for each inward payment, such as P0102 for export of goods or P0802 for software consultancy, so the purpose must be clear.
- SBI charges Rs 50 per export-related inward remittance up to Rs 10 lakh and Rs 500 above that, nil for export credit customers, with no charge for incoming SWIFT messages.
USD or INR invoices: which should you pay?
Start with the currency on the supplier's invoice. Indian suppliers invoice foreign buyers in US dollars (USD) or Indian rupees (INR), and the choice decides which account you pay, which rail you use and who carries the exchange rate risk.
Indian rules make the supplier care about how and when the money arrives. Under the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, as amended by notification FEMA 23(R)/(1)/2026-RB, an Indian exporter must realize the full export value within nine months from 1 October 2026, or twelve months for exports invoiced or settled in rupees (RBI notification FEMA 23(R)/(1)/2026-RB). To realize means to receive the full export value in India through the banking channel. FEMA is the Foreign Exchange Management Act, 1999. The supplier's authorized dealer (AD) bank, an Indian bank licensed by the Reserve Bank of India (RBI) to deal in foreign exchange, tracks each export until it is realized.
An Indian supplier can keep dollars. It may credit up to 100% of its foreign exchange earnings to an EEFC account, an Exchange Earners' Foreign Currency account held with its AD bank, but balances not used or committed must be converted to rupees by the last day of the following month (RBI Master Direction on foreign currency accounts). Many exporters hold a rupee current account and a separate EEFC account in dollars.
Service suppliers have a tax reason to ask for foreign currency. Section 2(6) of the Integrated Goods and Services Tax (IGST) Act treats a service as an export only where payment is received in convertible foreign exchange or in Indian rupees wherever permitted by the RBI. CBIC Circular No. 202/14/2023-GST of 27 October 2023 confirms that rupee payments from a Special Rupee Vostro Account, a rupee account an Indian bank opens for a correspondent bank of the partner country, meet that condition (CBIC Circular No. 202/14/2023-GST). An Indian IT, design or consulting firm therefore usually asks for a dollar wire, so the receipt is clearly foreign exchange.
| Invoice currency | What you send | What the supplier receives | Who carries the exchange rate risk |
|---|---|---|---|
| INR | Rupees, converted by your provider before sending | The exact rupee amount, if paid as a local rupee payout | You, the buyer |
| USD, supplier has an EEFC account | US dollars by SWIFT wire | Dollars, held until the end of the following month | The supplier |
| USD, supplier has only a rupee account | US dollars by SWIFT wire | Rupees, converted by the supplier's bank on arrival | The supplier, at the bank's rate |
Sources: RBI notification FEMA 23(R)/(1)/2026-RB; RBI Master Direction, paragraph 3.1; CBIC Circular No. 202/14/2023-GST; as published on 29 October 2026.
For services, agree a dollar invoice and pay it by SWIFT wire. For goods, a rupee invoice removes conversion from the supplier's side and gives it twelve months to realize instead of nine. Before you pay rupees through a provider, ask the supplier whether that route gives it the inward remittance record its AD bank needs. That record is the FIRC, the Foreign Inward Remittance Certificate, or a provider's equivalent advice, and the supplier uses it to close the export with its bank. Settle the currency in the contract, not invoice by invoice.
Details to collect from an Indian supplier
Collect the payment details once, in writing, on the supplier's letterhead or invoice. Indian accounts are identified by an account number at a branch, and each branch has an IFSC, the Indian Financial System Code used for domestic transfers. An international wire also needs the bank's SWIFT code, the 8 or 11 character code that identifies a bank on the SWIFT network.
| Detail | Example or format | Why it matters |
|---|---|---|
| Account name | The supplier's registered name, exactly as on the bank account | Name mismatches lead to queries or returns |
| Beneficiary address | Full street address in India | Required on SWIFT wires |
| Account number and type | EEFC account for dollars, or the rupee current account | A dollar wire to a rupee account is converted on arrival |
| Bank name, branch and SWIFT code | 8 or 11 characters for the SWIFT code | Routes the wire to the right bank |
| IFSC | The branch code shown on the supplier's bank documents | Needed for rupee payouts over NEFT or RTGS; some banks also ask for it on wires |
| Intermediary (correspondent) bank | The US bank the supplier's bank uses for dollars, if it names one | A wrong correspondent is a common reason for returns |
| Purpose of payment | For example, export of goods or software services | The supplier's bank reports an RBI purpose code for each receipt |
| GSTIN, PAN and IEC | From the supplier's invoice and registrations | Lets you match the bank details to the invoicing company |
Field list compiled by the Helm Editorial Team; IFSC location from SBI, RTGS and NEFT FAQs; as published on 29 October 2026.
GSTIN is the supplier's registration number under the Goods and Services Tax (GST). PAN is the Permanent Account Number, India's income tax ID. IEC is the Importer Exporter Code issued by the Directorate General of Foreign Trade to goods exporters and importers. A correspondent bank is a bank that holds an account for another bank and settles payments in its currency.
The purpose code matters more in India than in most markets. Banks and providers report an RBI purpose code that describes each inward payment. Wise's published list includes P0102 for realization of export bills for goods, P0802 for software consultancy and implementation, P0807 for off-site software exports and P1006 for business and management consultancy and public relations services (Wise, INR purpose codes). Ask the supplier which code applies and state the purpose clearly in the payment. Treat any change of bank details as a fraud risk and confirm new details by calling a contact you already know. Our SWIFT code lookup helps confirm the bank code.
How the money moves: SWIFT, NEFT and RTGS
There are two ways to get money from a US account to an Indian supplier.
SWIFT wire. Your bank sends an international wire over SWIFT, the global messaging network banks use for cross-border payments, to the supplier's bank. The dollars settle in the United States on Fedwire, the Federal Reserve's system for large-value transfers, through the Indian bank's correspondent. Every SWIFT wire carries a charges instruction: OUR means you pay all bank charges, SHA means each side pays its own bank, and BEN means all charges come out of the amount sent.
Local rupee payout. A provider with access to Indian rails converts your dollars and pays the supplier's rupee account as a domestic transfer. Wise, for example, states that it sends INR via RTGS, NEFT or TPT to INR-denominated accounts in India (Wise). NEFT, National Electronic Funds Transfer, settles in half-hourly batches, and RTGS, Real Time Gross Settlement, settles each payment individually. State Bank of India (SBI) states that both run 24x7, 365 days, that RTGS has a minimum of Rs 2 lakh and NEFT a minimum of Rs 1, with no maximum for either (SBI, RTGS and NEFT FAQs). One lakh is 100,000 rupees.
| Route | Currency the supplier receives | Timing | Notes |
|---|---|---|---|
| SWIFT wire to an EEFC account | USD | Credited on an Indian bank working day | Standard route for dollar invoices |
| SWIFT wire to a rupee account | INR, converted on arrival | Credited on an Indian bank working day | Supplier's bank sets the rate |
| Local rupee payout over RTGS | INR | 24x7; SBI states the beneficiary bank should credit within 30 minutes of receiving the message | Minimum Rs 2 lakh |
| Local rupee payout over NEFT | INR | 24x7 in half-hourly batches; credit expected within two hours of the batch | Minimum Rs 1; no maximum |
Sources: SBI, RTGS and NEFT FAQs; Wise; as published on 29 October 2026. Wire credit times vary by bank and correspondent.
Some buyers are asked to pay in stablecoins such as USDT or USDC. The Ministry of Finance has told the Lok Sabha that virtual digital assets, including cryptocurrencies, are currently not regulated in India, and income from transferring them is taxed at a flat 30% with 1% tax deducted at source (Business Today). Export realization relies on payments through AD banks that produce bank records, so a stablecoin transfer does not give the supplier what it needs. Pay through the banking channel.
Helm sends international payments to suppliers by SWIFT, and by local rails in the supplier's currency where available, from the buyer's own account, with the rate, fee and expected arrival shown before you send.
Cut-offs and holidays
On the US side, the Fedwire Funds Service day opens at 9:00 p.m. Eastern Time (ET) on the previous calendar day and closes at 7:00 p.m. ET, with a 6:45 p.m. ET cut-off for customer transfers (Federal Reserve Financial Services). Your bank's own cut-off for international wires is earlier. India is 9.5 hours ahead of New York in the US summer and 10.5 hours ahead in the US winter, so a wire sent in a New York afternoon reaches the Indian bank after its working day.
On the Indian side, RTGS and NEFT run every day, but SWIFT credits, conversions and purpose code checks wait for a bank working day. Indian bank holidays are set state by state, and banks also close on the second and fourth Saturdays of each month (Upstox summary of the RBI holiday list). Ask the supplier which state its branch is in and check that state's list.
| Date | Closed or affected | Plan for |
|---|---|---|
| Wednesday 11 November 2026 | US Fedwire (Veterans Day) | Send US wires by 10 November |
| Saturday 14 November 2026 | India (second Saturday) | SWIFT credits move to Monday 16 November |
| Thursday 26 November 2026 | US Fedwire (Thanksgiving) | Send US wires by 25 November |
| Saturday 28 November 2026 | India (fourth Saturday) | SWIFT credits move to Monday 30 November |
| Saturday 12 December 2026 | India (second Saturday) | Allow an extra day |
| Friday 25 December 2026 | India (Christmas, all states); US Fedwire | Send year-end payments by 22 December |
| Saturday 26 December 2026 | India (fourth Saturday) | Credits move to Monday 28 December |
| Friday 1 January 2027 | US Fedwire (New Year's Day) | Send US wires by 31 December |
Sources: Upstox, RBI holidays 2026; Federal Reserve holiday schedule K.8; as published on 29 October 2026. State holidays add further closures; check the RBI list for the supplier's state.
Fees as published
A payment to India can carry four costs: your provider's sending fee, the exchange rate if you convert, intermediary bank deductions on a SWIFT wire, and the supplier's receiving charges. Indian banks publish their foreign exchange charges. The example below is SBI's schedule effective 1 October 2026; goods and services tax applies on top.
| Item | Published charge | Who pays it |
|---|---|---|
| Export-related inward remittance up to Rs 10 lakh (SBI) | Rs 50 per inward remittance reporting; nil for export credit customers | Supplier |
| Export-related inward remittance above Rs 10 lakh (SBI) | Rs 500 per remittance; nil for export credit customers | Supplier |
| Incoming SWIFT message (SBI) | No charge | Not applicable |
| e-FIRC issuance and e-BRC (SBI) | No charge | Not applicable |
| Intermediary banks | Deducted in transit on SHA and BEN wires | Whoever the charges code assigns |
| Helm | Agreed in writing before the account opens | Buyer |
Source: State Bank of India, foreign exchange transaction related service charges, effective 1 October 2026; as published on 29 October 2026. Other banks set their own charges.
An e-BRC is the electronic bank realization certificate that records an export as realized. A short payment costs the supplier more than the fee itself. If intermediaries deduct charges from a SHA wire, the amount realized no longer matches the export value the supplier declared, and its bank may ask it to explain the gap. Send dollar wires with OUR charges when the supplier must receive the full amount, and compare the all-in cost, rate plus fee, for rupee payouts. Helm agrees pricing with each business before the account opens; speak to the team.
Common reasons payments are delayed or returned
| Problem | What happens | How to prevent it |
|---|---|---|
| Wrong or missing purpose of payment | The supplier's bank holds the credit while it asks | Agree the purpose code with the supplier before you pay |
| Dollars sent to a rupee account | Converted on arrival at the bank's rate | Ask for the EEFC account number for dollar invoices |
| Account name does not match | Bank queries or returns the payment | Use the registered name exactly as on the account |
| Missing invoice reference | Supplier cannot match the payment to the export | Quote the invoice number in the payment |
| Wire sent as SHA or BEN | Amount realized is less than the export value | Use OUR charges |
| Wrong correspondent bank | Wire delayed or returned | Use the inbound instructions the supplier's bank publishes |
| Payment late against the contract | Supplier's nine-month window runs down | Pay on the agreed terms; tell the supplier of any delay |
Sources: Wise, INR purpose codes; RBI notification FEMA 23(R)/(1)/2026-RB; SBI; as published on 29 October 2026.
If a wire has left but not arrived, ask your bank for the UETR (Unique End-to-end Transaction Reference), the tracking code that stays the same along the whole SWIFT chain, and send it to the supplier with your payment confirmation. Undelivered RTGS payments are returned within an hour or before the end of the RTGS business day, and NEFT payments within two hours of the batch, according to SBI.
Step by step: paying a supplier in India
- Agree the currency. Set USD or INR in the contract, and who pays bank charges; for services, agree a dollar invoice.
- Collect details once. Get the account name, address, account number, IFSC, bank, branch and SWIFT code in writing, with the GSTIN.
- Agree the purpose. Confirm the purpose of payment and the code the supplier's bank expects.
- Verify by phone. Confirm the details with a known contact before the first payment and after any change.
- Choose the rail. Pay dollar invoices by SWIFT wire to the EEFC account; pay rupee invoices as a local payout over NEFT or RTGS.
- Check the quote. Compare the rate, fee and expected arrival before you confirm, and send dollar wires with OUR.
- Time it. Send before your provider's cut-off and away from US holidays and Indian bank holidays.
- Send proof. Share the UETR and SWIFT confirmation, or the payout reference, with the invoice number.
For how your supplier receives and holds dollars, see how to receive USD in India and USD business accounts in India.
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What is the best way to pay a supplier in India from the US?
For dollar invoices, send a SWIFT wire to the supplier's EEFC or current account with OUR charges and a clear purpose of payment. For rupee invoices, a local payout over NEFT or RTGS arrives as a domestic transfer, but check first that the supplier gets the inward remittance record its bank needs.
What bank details do I need to pay an Indian supplier?
You need the account name exactly as on the account, the supplier's address, the account number, the bank's name, branch and SWIFT code, and the branch IFSC for rupee payouts. Ask whether to use the EEFC dollar account or the rupee current account, and which purpose of payment applies.
What is an IFSC code?
The IFSC, or Indian Financial System Code, identifies a bank branch for domestic transfers in India such as NEFT and RTGS. SBI states it can be found through online banking, at the branch, or on the account holder's bank documents.
Why does my Indian supplier ask for a purpose code?
Indian banks report an RBI purpose code that describes each payment received from abroad, such as P0102 for export of goods or P0802 for software consultancy. A wrong or missing purpose can delay the credit while the bank asks the supplier.
Can an Indian supplier receive US dollars?
Yes. An Indian supplier can credit up to 100% of its foreign exchange earnings to an EEFC account with its authorized dealer bank. Balances not used or committed must be converted to rupees by the end of the following month.
How long does an Indian supplier have to receive payment for an export?
From 1 October 2026, export proceeds must be realized within nine months, or twelve months for exports invoiced or settled in rupees, under notification FEMA 23(R)/(1)/2026-RB. Late or short payments leave the supplier with an open export to explain to its bank.
Why do Indian service providers want to be paid in dollars?
Section 2(6) of the IGST Act treats a service as an export only where payment is received in convertible foreign exchange or in rupees wherever the RBI permits it. A dollar wire through the banking channel clearly meets that condition.
How long does a payment to India take?
SBI states that RTGS credits should reach the beneficiary within 30 minutes and NEFT credits within two hours of the batch, both running 24x7. A SWIFT wire is credited on an Indian bank working day after it clears the US and the correspondent bank.
Why did my Indian supplier receive less than I sent?
Intermediary banks can deduct fees from a wire sent with SHA or BEN charges, and Indian banks may charge for inward remittances; SBI charges Rs 50 or Rs 500 depending on the amount, unless the supplier has export credit with SBI. Sending with OUR charges covers the transfer fees.
References
- Reserve Bank of India: Notification FEMA 23(R)/(1)/2026-RB, Export and Import of Goods and Services (Amendment) Regulations, 2026 (22 September 2026)
- Reserve Bank of India: Master Direction, foreign currency accounts by a person resident in India
- CBIC: Circular No. 202/14/2023-GST on export of services and Special Rupee Vostro Accounts (27 October 2023)
- State Bank of India: RTGS and NEFT FAQs
- State Bank of India: Foreign exchange transaction related service charges, effective 1 October 2026
- Wise: INR purpose codes
- Wise: What currencies can I send to and from?
- Federal Reserve Financial Services: Fedwire Funds Service operating hours
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.