Best Ways to Receive International Payments in India

Sending and receiving payments in India has been made easier as there are multiple options citizens can use to move money. This is especially true for digital or online businesses that have dealings with people from across the globe. If you consider rendering your services to foreigners, you probably want to know your options when receiving payments.

We will cover these payment methods in our article and show you how you can conveniently receive your payments from any part of the world in India.

How to Receive Money from Any Part of the World in India

The traditional way of receiving money and making payments was performed through banks previously. However, this came with varying costs and made it difficult for people to go through that route. Fortunately, new solutions have been introduced over the years that came with little to no costs at all for people to receive money. What makes any receiving method the best? For many, it’s the ease and speed of receiving money, while to others, the lower fees make it attractive. Here is how to get international payments in India from any part of the world.

1. PayPal

This company is one of the most reliable payment services across the world. PayPal is available to Indians, and they operate in up to 200 countries. This payment provider also has support for up to 25 currencies. PayPal is easy to use and is one of the cheapest modes of receiving money worldwide. You will need to sign up on their platform to get a PayPal wallet. PayPal has a mobile app, and you can also access your wallet on the web. When you receive money via PayPal, you can withdraw into your local bank account at a small fee.

2. Xoom

Xoom is another payment service owned by PayPal. It is different from the PayPal wallet system but instead offers users a payment gateway to send and receive money directly to their bank account. Like the mobile wallet from PayPal, you need to sign up with Xoom to use the service. There are usually fees charged for each transfer.

3. Payoneer

Payoneer is one of the most common options in India and supports USD, GBP, EUR, AUD, CAD, JPY, and MXN currencies. You can receive payments in India when you operate a Payoneer account. The platform gives you a virtual bank account in its supported currencies so you can receive payments from people worldwide. When money is received, you can then withdraw it to your local bank account. Payoneer charges a 2% fee above the mid-market exchange rate when withdrawing to your bank account.

4. SBI

There are three ways to receive money in India with SBI. You can either go through the wire transfer route, request a draft, or go through Express Remit. However, the Express Remit option does not apply to businesses because it is meant for individuals only. When you receive money through SBI, it is the sender that bears the costs or charges. So this may reflect in your payment especially considering the exchange rate.

5. Wise

Formerly known as TransferWise, this company makes it easy to receive payments in India. Wise uses cutting-edge technology that makes it fast and cheaper to send money. The company uses a mid-market exchange rate which is fair, and there are no hidden charges. Wise operates in over 59 countries around the world, so it’s easy getting payments in India.

6. Instamojo

Instamojo has a payment gateway for sending and receiving payments in India. Their service is easy to use as it offers a seamless payment service. There are no hidden fees, annual charges, or maintenance fees attached to their payment option locally. However, you need to contact them directly when you need to receive international payments because they don’t offer multi-currency options. All payments made on Instamojo are made in Indian Rupees.

7. ICICI Bank

ICICI is another way to receive money in India, and you can do this with a wire transfer. You can have your customers do a wire transfer directly to your business or individual bank account. You need to give your client your bank details so they can transfer the money. Usually, this process takes about 24-48 hours to receive the money. The bank may require some additional documentation to receive the money.

8. HDFC Bank

HDFC also supports international payments to India. The bank operates up to 22 currencies so that you can get paid quickly from any part of the world. HDFC offers customers the option of a demand draft and cheque collection for foreign currency. The bank does not have any hidden charges for receiving money. However, the sender will be the one to incur the costs.

9. Axis Bank

You can receive money worldwide directly in your local bank account with Axis Bank. The bank offers customers in India the option of wire transfer, swift payment, or inward remittances. They currently support up to 14 currencies, so getting paid from any part of the world is easy. However, Axis bank usually requests additional documents providing information about the nature of the transaction.

Is Money Transferred from Overseas to India Taxable?

One of the questions people ask when receiving payments in India is usually taxes for it. When you receive compensation for a service or goods supplied internationally, you won’t be taxed for that amount received. Instead, you will be taxed for the profits of your business under income tax.

However, taxes will apply for individuals receiving the money to their accounts when you receive a sum over Rs. 50,000. If the money received is from your family, it is not taxable.

Bottom Line

Now that you know the best ways to receive money worldwide in India, you can use any of these methods. These methods are a reliable way to get your money fast. So whether you need a client to pay you for goods or receive money from friends and families, you can conveniently get it in your account without any hassle.