Payments 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.

1. Personal gifts: include the purpose/your residency status/relationship to the recipient
2. Religious or charitable donation: include the FCRA number
3. Payment for educational services: eg fees
4. Family maintenance and savings: from an Indian non-resident
5. Exports payments after shipment: not to Nepal or Bhutan
6. Exports advance payments: not to Nepal or Bhutan
7. Loan payment
8. Salary payment: to employees
9. Office maintenance: include UIN
10. Travel: bookings
11. Reimbursement: of expenses
12. House maintenance: payment to caretaker
13. Foreign direct investment: details required
14. Legal fees: details required
15. 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