USD business account in India
An Indian business holds US dollars in an EEFC account at an authorized dealer bank, which keeps up to 100% of its foreign exchange earnings in dollars until the end of the following month. From 1 October 2026 export proceeds must be realized within nine months, so every USD account option has to fit FEMA's timelines. This guide covers EEFC accounts, provider receiving accounts, accounts abroad, documents and stablecoins.
- A person resident in India can open an EEFC account with an authorized dealer bank and credit up to 100% of foreign exchange earnings to it, with no interest paid.
- EEFC accruals not used for permitted purposes or forward commitments must be converted to rupees by the last day of the following calendar month.
- From 1 October 2026 the export realization period is nine months, or twelve months for exports invoiced or settled in rupees, under notification FEMA 23(R)/(1)/2026-RB.
- An exporter may hold a foreign currency account with a bank abroad, but funds must pay for imports into India or be repatriated by the end of the next month, or three months in an IFSC.
- Wise states that USD received by Indian businesses is converted automatically to INR and cannot be held in balances, for regulatory reasons.
- The Ministry of Finance has told the Lok Sabha that virtual digital assets, including cryptocurrencies, are currently not regulated in India.
USD business accounts in India: the short answer
An Indian business holds US dollars in an EEFC account. EEFC stands for Exchange Earners' Foreign Currency account, a foreign currency current account that a person resident in India opens with an authorized dealer bank to keep foreign exchange earnings in that currency. An authorized dealer (AD) bank is an Indian bank licensed by the Reserve Bank of India (RBI) to deal in foreign exchange. Buyers abroad pay the EEFC account by SWIFT, the international network banks use to send cross-border payments.
The rules that shape the choice come from FEMA, the Foreign Exchange Management Act, 1999, and the RBI regulations under it. Three matter most. Unused EEFC balances must be converted to rupees by the end of the following month. Export proceeds must be realized within nine months from 1 October 2026, down from fifteen. And an exporter may hold a foreign currency account outside India only if the money is used for imports or brought back by the end of the next month.
Besides an EEFC account, Indian businesses use receiving accounts from regulated payment providers, which convert dollars to rupees on arrival, foreign currency accounts abroad within the FEMA limits, and USD account details from providers such as Helm. This guide covers the rules, each option and who can open it, a comparison, documents, where stablecoins stand in India, and how a Helm account fits. It is written for exporters, importers, IT and service firms, agencies and trading companies, with a note for freelancers.
FEMA rules on receiving, holding and paying USD
India's rules on foreign currency are stricter than those in trading hubs such as Hong Kong or the UAE. A resident business cannot simply keep dollars in any account it likes. The table sets out the rules that apply to a USD account.
| Rule | What it requires | Source |
|---|---|---|
| Who may hold an EEFC account | A person resident in India, with an AD bank in India | RBI Master Direction, paragraph 3.1 |
| What can be credited | 100% of foreign exchange earnings received by inward remittance through normal banking channels | RBI Master Direction, paragraph 3.1(1) |
| Interest | None; the EEFC account is non-interest bearing | RBI Master Direction, paragraph 3.1(4) |
| Conversion | Monthly accruals not used for permitted purposes or forward commitments are converted to rupees by the last day of the following calendar month | RBI Master Direction, paragraph 3.1(6); RBI FAQ on EEFC |
| Export realization period | Nine months from 1 October 2026; twelve months where exports are invoiced or settled in rupees | FEMA 23(R)/(1)/2026-RB of 22 September 2026 |
| Foreign currency account abroad | Allowed for an exporter's proceeds and advances; funds used for imports into India or repatriated by the end of the next month, or three months for an account in an International Financial Services Centre (IFSC) | RBI Master Direction, paragraph 4.10 |
| Payment aggregators for cross-border trade | Online collections for exports capped at INR 25,00,000 per unit of goods or services | RBI circular on Payment Aggregator, Cross Border, 31 October 2023 |
Sources: RBI Master Direction on foreign currency accounts by a person resident in India (updated 2 September 2026); RBI FAQ on EEFC accounts; RBI notification FEMA 23(R)/(1)/2026-RB; AZB & Partners summary of the RBI PA-CB circular. As published on 29 October 2026.
The October 2026 change to export realization
The RBI notified the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 on 13 January 2026, in force from 1 October 2026. They replaced the 2015 export regulations and the Master Directions on export and import. As notified in January, they kept the fifteen month realization period the RBI introduced in November 2025. Then an amending notification dated 22 September 2026, also in force from 1 October 2026, cut the period to nine months, and the rupee-invoiced period from eighteen to twelve months.
| Item | Regulations as notified, January 2026 | As amended, in force from 1 October 2026 |
|---|---|---|
| Goods exports | 15 months from the date of shipment | 9 months |
| Services and software exports | 15 months from the invoice date | 9 months |
| Exports invoiced or settled in INR | 18 months | 12 months |
| Export Declaration Form (EDF) | Required for all exports; services within 30 days after the end of the month of invoicing | Unchanged by the amendment |
| Import payments | Tied to the payment terms in the contract with the overseas seller | Unchanged by the amendment |
Sources: Mondaq, RBI releases FEMA 2026 export import trade regulations; RBI notification FEMA 23(R)/(1)/2026-RB of 22 September 2026. As published on 29 October 2026. Your AD bank may extend periods under its own published policy.
An EDF is the declaration that records an export and its value with the AD bank. Many guides published before October 2026 still quote fifteen months. Plan for nine.
Option 1: an EEFC account at an Indian bank
For most Indian businesses that earn dollars, the EEFC account is the core USD account. It is opened with the AD bank that holds the company's rupee current account, and each currency has its own account number. Buyers pay it by SWIFT using the bank's SWIFT code and USD inbound instructions, which name the bank's correspondent in the United States. A correspondent bank is a bank that holds an account for another bank and settles payments in its currency.
| Feature | EEFC account |
|---|---|
| Account type | Current account, no interest |
| Credits | Up to 100% of foreign exchange earnings received through normal banking channels |
| Permitted debits | Payments outside India for current or capital account transactions, such as import payments; payments in foreign exchange to a resident in India for goods or services |
| Holding period | Accruals not used or committed must be converted to rupees by the last day of the following month |
| Rupee withdrawals | Allowed, but rupees withdrawn cannot be converted back into foreign currency |
| Proof of receipt | Banks issue a Foreign Inward Remittance Certificate (FIRC) or similar advice as the record of each credit |
Sources: RBI Master Direction, paragraph 3.1; RBI FAQ on EEFC accounts. The proof of receipt row reflects bank practice. As published on 29 October 2026.
A FIRC is the bank's record that foreign currency arrived from abroad. Exporters can use it to support the EDF, GST filings and export incentive claims. GST is India's Goods and Services Tax.
The EEFC account suits companies that both earn and spend dollars. An IT services firm that pays US software vendors, or a manufacturer that imports components, can pay those bills from dollars it earned, without converting to rupees and back. The monthly conversion rule means it is a working account, not a place to store dollars long term.
Its limit is the same as any bank account outside the United States: no US routing number, so US buyers cannot pay it by ACH, the low-cost US domestic bank transfer system, and must send an international wire. Intermediary banks can deduct fees on the way unless the buyer pays on OUR terms, the SWIFT charge code under which the sender pays all fees. Our guide to receiving USD from overseas buyers covers the details a buyer needs.
Option 2: receiving accounts from payment providers
Many Indian exporters and service firms receive dollars through a payment provider that gives them US account details. Under the RBI's 2023 circular, providers that collect export payments online act as payment aggregators for cross-border transactions (PA-CB) and settle through an export collection account with an AD bank in India, which may be in rupees or foreign currency. Each export or import they process is capped at INR 25,00,000 per unit of goods or services.
| Provider | What it publishes for Indian businesses | Effect |
|---|---|---|
| Wise | Local account details in USD and 10 other currencies, and international details in 13 more; money is converted automatically to INR and sent to the business's Indian bank account; the details cannot be used to send money or hold balances, for regulatory reasons; INR 2.5 million maximum and USD 5 minimum per transaction; e-FIRC by email within 3 working days | Collect in USD, receive INR |
| Airwallex | India is on its list of supported business registration locations; Indian businesses are onboarded by its Singapore entity | Check the products offered to that entity before applying |
Sources: Wise, Receiving payments for Indian businesses; Airwallex, eligible countries and territories for business registration. As published on 29 October 2026.
The trade-off is clear from Wise's own page: a receiving account lets US clients pay as they pay domestic suppliers, but the dollars do not stay dollars. They arrive in the Indian bank account as rupees, with an e-FIRC as the record. That suits a firm whose costs are in rupees. It does not suit one that needs to pay suppliers in dollars, which has to buy them back.
Option 3: an account outside India, or a US company
FEMA lets an Indian exporter open, hold and maintain a foreign currency account with a bank outside India for the full export value and advance payments for exports of goods or services. The RBI rewrote this rule on 6 October 2025. Money in the account can be used to pay for imports into India or must be repatriated within a period ending at the end of the next month after receipt, or three months for an account with a bank in an International Financial Services Centre. The realization rules for exports must also be met.
An IFSC is a special financial zone; India's is GIFT City in Gujarat. The RBI explanation added in 2025 confirms that accounts permitted outside India can also be opened in an IFSC, which is why GIFT City accounts get the longer three month window.
In practice, an account abroad works as a collection point. A US buyer pays it, the exporter pays an import bill from it or moves the money to its EEFC account, and the AD bank matches the receipt to the EDF. It does not let an Indian company keep dollars offshore indefinitely.
Forming a US company is the other route founders hear about. Owning a company abroad is an investment outside India governed by FEMA, so speak to your AD bank before forming one. The US company's account belongs to the US company, and its income does not count as the Indian company's export proceeds.
The options compared
The table compares types of account, not providers, and is not a ranking.
| EEFC account | Provider receiving account | Foreign currency account abroad | Account of a US company | |
|---|---|---|---|---|
| Account holder | Indian business | Indian business; funds settle to its Indian bank | Indian exporter | US company |
| Holds USD | Yes, until the end of the following month | No, converted to INR | Yes, until the end of the next month (three months in an IFSC) | Yes |
| How a US buyer pays | International wire (SWIFT) | ACH or wire to US details | Depends on the bank | ACH or wire |
| Use for paying suppliers in USD | Yes, permitted debits | No | Yes, imports into India | Only the US company's own suppliers |
| Main FEMA point | Monthly conversion of unused accruals | INR 25,00,000 cap per unit | Must be with a bank outside India; strict repatriation window | Overseas investment rules |
Source: Helm Editorial Team, drawing on the RBI and provider pages cited in this guide, as published on 29 October 2026.
Most exporters combine two: an EEFC account for receipts and supplier payments in dollars, and a receiving account or account abroad so US buyers can pay by ACH.
USDT and USDC in India: what the government says
Stablecoins are digital tokens designed to hold a steady value against a currency, and USDT and USDC track the US dollar. India has no law that specifically regulates them. In written replies to the Lok Sabha, the Ministry of Finance has stated that virtual digital assets, including cryptocurrencies, are currently not regulated in India, while the sector falls under the Financial Intelligence Unit, India (FIU-IND) for anti-money laundering purposes.
| Point | What applies |
|---|---|
| Regulatory status | Virtual digital assets are not regulated, according to the Ministry of Finance's written reply to the Lok Sabha reported in February 2026 |
| Anti-money laundering | Service providers fall under FIU-IND oversight under the Prevention of Money Laundering Act |
| Tax | Income from transferring virtual digital assets is taxed at a flat 30%, with 1% tax deducted at source on transfers since 1 July 2022, as reported |
| EEFC accounts | Credits are foreign exchange earnings received by inward remittance through normal banking channels |
Sources: Business Today, Crypto still unregulated, but under tax and enforcement radar: FinMin in Parliament (5 February 2026); RBI Master Direction, paragraph 3.1. As published on 29 October 2026.
For a business, the point that matters is the last row. FEMA's export and EEFC rules are built on payments that pass through AD banks and produce bank records such as the FIRC and the EDF match. A stablecoin transfer does not pass through that channel. Take advice from your AD bank and a FEMA adviser before accepting any stablecoin for an export or using one to pay an import. Helm accounts can receive, send and convert USDC and USDT, but an Indian business should not use those features for its trade without that advice.
Documents and a note for freelancers
AD banks and payment providers ask for broadly the same documents. The list below is typical; each bank sets its own.
| Document | What it is | Who needs it |
|---|---|---|
| PAN | Permanent Account Number, the income tax ID | Every business and signatory |
| Certificate of incorporation or registration | Proof the business exists | Companies, LLPs and partnerships |
| GST registration certificate | Registration under the Goods and Services Tax | Where the business is registered for GST |
| IEC | Importer Exporter Code issued by the Directorate General of Foreign Trade | Goods exporters and importers |
| Identity documents of directors and signatories | Passport or Aadhaar, the national identity number | Every signatory |
| Evidence of trade | Contracts, purchase orders and invoices with overseas buyers and suppliers | All, especially for new buyers |
Typical bank and provider checklist; requirements vary. As published on 29 October 2026.
Freelancers resident in India, such as developers, designers and consultants with clients abroad, can open an EEFC account as individuals, since the rule covers any person resident in India with foreign exchange earnings. Many also use a provider receiving account for clients in the United States. The same rules apply: EEFC balances not used must be converted by the end of the following month, and receiving accounts settle in rupees.
Where Helm fits for Indian businesses
Helm provides USD account details in the company's own name, with a routing and account number that receives ACH, Fedwire and SWIFT, alongside EUR and GBP details. For an Indian exporter, that means a US buyer can pay by ACH, the same way it pays domestic suppliers, into an account named for the Indian company rather than a subsidiary. Helm also offers international payments to suppliers by SWIFT and local rails, with the rate, fee and expected arrival shown before sending.
FEMA sets the limits. Paragraph 4.10 of the RBI Master Direction refers to an account with a bank outside India, and Helm is a financial technology company, not a bank; accounts are held with regulated partner institutions. Before using a Helm account for export proceeds, ask your AD bank to confirm how it will treat proceeds collected that way. In every case, export proceeds must be realized within nine months and money collected abroad used for imports or brought to India within the next-month window.
Helm agrees pricing in writing before the account opens, and review questions are answered in writing within one business day. Exporters in other markets can compare the rules in the guide to a USD business account in the UAE.
A checklist for Indian businesses:
- Open an EEFC account with your AD bank for dollar receipts and dollar payments.
- Diary nine months from shipment or invoice for every export from 1 October 2026.
- File the EDF and keep the FIRC for every receipt.
- Convert unused EEFC accruals by the end of the following month.
- If buyers pay an account abroad, move the money to India or pay imports by the end of the next month.
- Take advice before accepting any stablecoin.
Open a Helm account
USD, EUR and GBP accounts in your company's name, with a named account manager.
Open accountQuestions
Can an Indian company open a USD account?
Yes. A person resident in India, including a company, can open an EEFC account in US dollars with an authorized dealer bank in India and credit up to 100% of its foreign exchange earnings to it. The account is a non-interest bearing current account.
What is an EEFC account?
An Exchange Earners' Foreign Currency account is a foreign currency current account held with an Indian AD bank by a resident who earns foreign exchange. It can pay for imports and other permitted transactions abroad, and accruals not used must be converted to rupees by the end of the following month.
How long can I keep dollars in an EEFC account?
The RBI Master Direction requires monthly accruals to be converted to rupees by the last day of the following calendar month, after adjusting for amounts used for permitted purposes or forward commitments. The account is meant for working balances, not long-term holding.
What is the export realization period in India from October 2026?
Under the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, as amended by notification FEMA 23(R)/(1)/2026-RB, export proceeds must be realized within nine months from 1 October 2026, or twelve months for exports invoiced or settled in rupees. The earlier fifteen month period no longer applies.
Can an Indian exporter hold a bank account abroad?
Yes, within limits. An exporter may hold a foreign currency account with a bank outside India for export proceeds and advances, but funds must be used for imports into India or repatriated by the end of the next month, or three months for an account in an IFSC such as GIFT City.
Do USD receiving accounts from payment providers hold dollars?
Not for Indian businesses in the case of Wise, whose page states that money is converted automatically to INR and sent to the Indian bank account, and that the details cannot be used to hold balances or send money. Check each provider's own terms.
Can a US client pay an Indian company by ACH?
Not into an Indian bank account, which receives dollars only by international wire. A US client can pay by ACH into US account details provided by a payment provider or by a provider such as Helm, subject to the FEMA rules on where the money goes next.
Is USDT legal in India for business payments?
The Ministry of Finance has told the Lok Sabha that virtual digital assets, including cryptocurrencies, are currently not regulated in India, and income from them is taxed at 30% with 1% tax deducted at source. FEMA's export and EEFC rules rely on payments through authorized dealer banks, so take advice before accepting any stablecoin for trade.
What documents do Indian banks need to open an EEFC account?
Typically the business's PAN, certificate of incorporation or registration, GST registration where applicable, the IEC for goods exporters, identity documents of signatories, and evidence of foreign exchange earnings such as contracts and invoices.
Can freelancers in India open an EEFC account?
Yes. The EEFC rules cover any person resident in India with foreign exchange earnings, so an individual freelancer can open one with an AD bank. The same monthly conversion rule applies.
References
- Reserve Bank of India: Master Direction, foreign currency accounts by a person resident in India (updated 2 September 2026)
- Reserve Bank of India: Frequently asked questions on EEFC accounts
- Reserve Bank of India: Notification FEMA 23(R)/(1)/2026-RB, Export and Import of Goods and Services (Amendment) Regulations, 2026 (22 September 2026)
- Mondaq: RBI releases FEMA 2026 export import trade regulations, what businesses need to know
- AZB & Partners: Regulation for payment aggregator operations for cross-border transactions (RBI circular of 31 October 2023)
- Wise: Receiving payments for Indian businesses
- Airwallex: Eligible countries and territories for business registration
- Business Today: Crypto still unregulated, but under tax and enforcement radar, FinMin in Parliament (5 February 2026)
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.