Payments to India
Formatting guide
Our guide to correctly formatting the purpose and reason to payments you make to India.
Banking regulation in India requires a certain level of information about the payment you’re making.
First, you’ll need to choose one of the 15 payment types.
- Personal gifts: include the purpose/your residency status/relationship to the recipient
- Religious or charitable donation: include the FCRA number
- Payment for educational services: eg fees
- Family maintenance and savings: from an Indian non-resident
- Exports payments after shipment: not to Nepal or Bhutan
- Exports advance payments: not to Nepal or Bhutan
- Loan payment
- Salary payment: to employees
- Office maintenance: include UIN
- Travel: bookings
- Reimbursement: of expenses
- House maintenance: payment to caretaker
- Foreign direct investment: details required
- Legal fees: details required
- Corporate payments: include nature of goods or services
Next, you’ll need to enter the payment details – this needs to be formatted a certain way, depending on the reason for the payment. We’ve explained this below.
1. Personal gifts
What to enter in the payment detail field: Gift for <relative's relationship to you> and your residency status.
Your resident status can be
- NRI - Non-Resident Indian
- PIO - Person of Indian Origin
- OCI - Overseas Citizen of India
- Foreign National
Examples
Gift for neice / REM status NRI
Gift for brother / REM status Resident Indian
2. Religious or charitable donation
What to enter in the payment detail field: Purpose is <payment> FCRA No 23166013R
The <payment> field should include your reason, such as 'charity'.
Examples
Charity name RSPB / FCRA no 12345464R
Donation to RSPCA / FCRA no 22345464R
3. Payment for educational services: eg fees
What to enter in the payment detail field: <Purpose of payment> course fee for period <mm.yy> to <mm.yyyy>
Example
College fee / Course fee for period 01.17 to 01.2018
4. Family maintenance and savings: from an Indian non-resident
What to enter in the payment detail field: <Purpose of the payment> relationship <brother>
Your relationship can be any relative, such as niece, brother, sister, mother
Examples
Family maintenance and savings / relationship Brother
Family maintenance and savings / relationship Mother
5. Exports payments after shipment: not to Nepal or Bhutan
What to enter in the payment detail field: Export payment / invoice ref no. <XXXX> / shipment date <dd.mm.yy> / Description of goods or services
Examples
Export payment / invoice 12456NT / Shipment 11.12.2017 / car parts
Export payment / invoice 21Nov-1231 / Shipment 11.12.2017 / 1000 paintbrushes
6. Exports advance payments: not to Nepal or Bhutan
What to enter in the payment detail field: Purpose of payment / invoice / transaction ref. number <XXXXX> / invoice / transaction date <dd.mm.yy>
Example
Management consultancy / invoice 12456 / transaction reference number 12345 / 21.10.17
7. Loan payment
What to enter in the payment detail field: Purpose of payment / REM status <REM status> / loan mat. <3 years> IR <x.y%> / loan amount <currency> <amount>
Note: IR is Interest Rate, and REM is Remitter (i.e. person making the payment)
REM status
- NRI - Non-Resident Indian
- PIO - Person of Indian Origin
- OCI - Overseas Citizen of India
- Foreign National
Example
Loan to brother / REM status NRI / loan mat. <3 years: IR 1.9% / loan amount USD 2000
8. Salary payment: to employees
What to enter in the payment detail field: Salary for <name of person>
The payment detail field should include the name of the employee and the purpose, such as ‘Salary for month of January’
Examples
Salary for Akhtar Patel / Salary for month of December
Salary for Michael Jones / Salary for months November to December
9. Office maintenance: include UIN
What to enter in the payment detail field: Offices in Pune / UIN <123ND>
The payment detail field should include the UIN granted i.e. Grant of Unique Identification Number
Examples
Office Maintenance expenses in Pune / UIN AHLO12345678
Hardware repair / Invoice ref. no. 1233456 / invoice date 13.05.2015
10. Travel: bookings
What to enter in the payment detail field: Travel on <business> from <city> to <city>
The payment detail field should include your reason, such as travel and from/to destinations and invoice reference
Examples
Travel on sightseeing holiday in India / Invoice ref no A123
Travel on business Mumbai to London / Invoice ref no 123456
11. Reimbursement: of expenses
What to enter in the payment detail field: Travel on <business> from <city> to <city>
The payment detail field should include your reason, such as travel and from/to destinations
Examples
Travel on holiday from Pune to Mumbai
Travel on business from Mumbai to London
12. House maintenance: payment to caretaker
What to enter in the payment detail field: Purpose of payment / Remitter relationship (REM RELN) <relationship>
Examples
Housekeeping / REM RELN Employer
Upkeep of house / REM RELN Brother
Payment to caretaker / Employee
Property purchase
What to enter in the payment detail field: Purpose of payment / type of property <XXXX> / REM status <REM status> / nationality of REM <nationality>
Citizens from a number of countries require prior approval from the RBI before purchasing property in India
Examples
House purchase / type of property residential / REM status NRI / nationality of REM Indian
13. Foreign direct investment: details required
What to enter in the payment detail field: Purpose of payment (such as purchase of fresh equity) / investee <name> bene contact <name>, <tel. no>, <email>
Example
Purpose is purchase of fresh equity / investee: abc ltd / bene contact: ashok patel, 00 912222, 4. 222222, ashok.patel@xyz.com
14. Legal fees: details required
What to enter in the payment detail field: Purpose of payment (such as payment for legal services) / Invoice ref. no. <XXXX> / Invoice date <dd.mm.yyyy>
Example
Payment for legal services / Invoice ref. no. 1234 / Invoice date 24.08.2017
15. Corporate payments: include nature of goods or services
What to enter in the payment detail field: Purpose of payment / Invoice ref. no. <XXXX> / Invoice date <dd.mm.yyyy>
Example
Software services / Invoice ref. no. 1234 / Invoice date 24.08.2017