Paying in India: NEFT, RTGS, IMPS, UPI and Indian rupee payouts

India has some of the fastest domestic payment rails in the world, and some of the most paperwork around money coming in from abroad. Here is what a company paying Indian contractors or suppliers needs to know.

Rashidatou K.Payments editor

Published: 24 June 2026
Reading time: 2 min read

India supplies developers, designers, support teams and back-office services to companies all over the world. Paying those people well and on time is a competitive advantage. The rails inside India are fast. The part that trips foreign companies up is the paperwork that comes with money arriving from abroad.

The domestic rails

Rail	Operator	Speed	Typical use
NEFT	Reserve Bank of India	Settles in half-hourly batches, 24/7	Everyday bank transfers
RTGS	Reserve Bank of India	Real time, 24/7	Large payments, ₹2 lakh and above
IMPS	NPCI	Instant, 24/7	Instant bank transfers
UPI	NPCI	Instant, 24/7	Payments to a UPI ID or phone, by people and small businesses

For a company abroad, these sit at the last step. Your provider converts and pays out in India, and the money reaches the contractor's account on one of these rails.

What details you need

Account holder name, exactly as the bank has it
Account number
IFSC code of the branch
Bank name

The SWIFT code guide explains how IFSC differs from a SWIFT code. You only need a SWIFT code if you are sending an international wire straight to the Indian bank.

Purpose codes and FIRC

Indian banks classify every inflow from abroad with a purpose code from the Reserve Bank of India's list. Software services, consulting, design and marketing services each have their own code. The recipient's bank may ask the sender, or the recipient, to confirm it.

Freelancers and companies exporting services often need a Foreign Inward Remittance Certificate (FIRC), or an electronic equivalent, as proof that the money is export income. Under India's GST rules, exports of services can be zero-rated, and the bank record supports that. If your contractor asks for the purpose code or a FIRC, they are not being difficult. They need it for their taxes.

Paying Indian contractors from abroad

Sign a contract and get an invoice for each payment. See how to pay international contractors.
For a US company, keep a W-8BEN on file (see W-8BEN vs W-8BEN-E).
Ask whether they want rupees in their bank account, or dollars in a foreign currency account if they hold one.
Put a clear description on the payment, such as "Software development services, invoice 1042".
Keep the USD amount and the exchange rate for your records.

Rupees or dollars?

A USD wire to an Indian savings account is converted by the receiving bank, usually at a rate the contractor cannot see in advance. Paying rupees converts once on your side, at a rate you see before you send. Most contractors prefer to receive the exact rupee amount on the invoice.

INR on Rivet

Rivet pays Indian bank accounts from your USD balance, with the rate and fee shown before you confirm, and can pay a whole team in one batch. See Payouts.

Questions people ask

What is an IFSC code?

The Indian Financial System Code, an 11-character code that identifies a bank branch, such as HDFC0001234. The first four letters are the bank, the fifth is a zero, and the last six identify the branch. Domestic transfers use it in place of a SWIFT code.

What is a purpose code for payments to India?

A code from the Reserve Bank of India's list that records why money is coming into the country, such as software services or consulting. The recipient's bank uses it to classify the inflow, which matters for the recipient's tax and export records.

What is a FIRC?

A Foreign Inward Remittance Certificate, issued by an Indian bank to confirm that money was received from abroad. Many banks now issue an electronic version, often called an e-FIRA or e-BRC. Exporters of services use it to support zero-rated GST and income records.

Can I pay an Indian contractor through UPI from abroad?

Not directly from a foreign bank account. A provider with an Indian payout service can pay the contractor's Indian bank account, and some can pay to a UPI ID. Most contractors are happy with a bank transfer arriving on IMPS or NEFT.

Sources

Written by

Rashidatou K.

Payments editor

Rashidatou writes Rivet's guides to how money moves between countries: the payment rails, what each one costs, and the account details a company needs to get paid in another currency. Every figure in Rashidatou's articles is traced to the scheme rulebook, the regulator or the provider's published price list, and those sources are listed at the end.