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Why paying India is hard

Updated 13 Oct 2026

An international wire to India often passes through three or more banks, and any of them can deduct a charge. This page lists the charges, who takes each one, and what they came to on a $4,500 paymentat today's rate.

Charges on a wire#

Four charges come out of almost every wire. The largest is the FX margin, which never appears as a line item.

Charges on a $4,500 wire, at today's rate

₹3,334

Sending bank fee

₹1,905

SWIFT / correspondent

₹8,468

FX margin

₹471

GST on conversion

You lose₹14,178of ₹4,28,637. You're credited ₹4,14,459.

Not counted, because they depend on your bank: its inward remittance fee, any FIRA fee, and 18% GST on both. Wire figures are typical, not any one bank's. GST uses the CGST Rule 32 slab.

Tracking a wire#

Once a wire leaves the sender's bank, neither side can see where it is. The sending bank can give the payer a reference (the UTR, or a SWIFT gpi tracker if both banks support it), but your bank only reports the payment once it is credited.

In practice that means: the payer says it's sent, your bank says nothing has arrived, and the only way to find it is for the payer to raise a trace with their bank.

On the payer’s side#

  • Many patients and smaller clinics don't hold US dollars and have to buy them first, at their own bank's margin.
  • A SWIFT transfer form asks for an IFSC, a SWIFT/BIC and sometimes an intermediary bank. Mistakes get the payment returned, minus fees.
  • Some countries limit how much foreign currency a person can send out, or how often.

Paperwork#

Foreign income needs a FIRA with the right purpose code before your CA can treat it as an export of services. With a plain wire, your bank picks the purpose code from whatever the sender wrote, and you usually have to request the FIRA yourself. The compliance page covers what goes on it.