Skip 3 to 5 day delays. Skydo settles inward payments in 24 hours with auto purpose codes and instant FIRA.

Inward remittance means receiving money from abroad in your bank account in India. However, inward remittance, especially foreign payments aren't as straightforward as a domestic transfer due forex rate, RBI guidelines and international systems.&nbsp; In this blog, we’ll break understand what inward remittance is, what are the rules, charges, and timelines around it. So let us begin!&nbsp;&nbsp;

Inward remittance is simply money sent to your bank account in India from someone living abroad. It could be funds from an NRI family member helping with education or medical bills, or even a foreign employer or client paying your salary or invoices.

The money arrives in foreign currency and gets converted into Indian Rupees at the current exchange rate. Whether it’s personal support or business payments, understanding how inward remittance works makes it easier to manage and maximize what you receive.

What are the Rules and Guidelines for Receiving&nbsp; Inward Remittance in India?

Since inward remittance involves movement of money across national borders, it comes with its own set of rules and guidelines.&nbsp;In India, the RBI and <a href="https://enforcementdirectorate.gov.in/fema">FEMA</a> (Foreign Exchange Management Act) have set out <a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance">specific guidelines</a> for receiving inward remittances in India:&nbsp;

<a href="https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/1061.PDF">&nbsp;Only Authorised Dealer Category I&nbsp;</a>(AD Cat I) banks are allowed to receive foreign inward remittances in India.&nbsp; The AD Cat I banks are financial institutions that hold a license issued by the Reserve Bank of India (RBI) to buy and sell foreign currency for capital and <a href="https://www.skydo.com/blog/what-are-capital-and-current-account-transactions">current account transactions</a>.

Each foreign inward remittance must contain a<a href="https://www.skydo.com/blog/rbi_purpose_code_for_inward_remittance"> purpose code.</a>&nbsp;The code defines the purpose of inward remittances like education, investments, remuneration, travel, insurance and more.&nbsp;For example:

If your inward remittance is payment for selling goods/services abroad then it must be accompanied by an <a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance">fira</a>. <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRA&nbsp;</a>is proof that you have received a <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">foreign payment </a>in India and is issued by the AD Category I banks.

Transfers related to lottery winnings, gambling, and other illegal activities are prohibited under FEMA guidelines.

For most foreign inward remittances, there’s no<a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance#do-you-have-to-pay-tax-on-remittance"> tax liability</a> in India. However, if the remittance is income from sources like investments, salary, or business, it will be taxed according to your applicable income tax slab rate.

We've briefly touched on the compliance requirements associated with inward remittance. You can find the <a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance">detailed explanation of the compliance requirements here</a>

What Documents Are Required for Receiving Inward Remittance in India?&nbsp;

While receiving your inward remittance, you may need to furnish the followig documents

You fall into this category if you’re an exporter, freelancer or someone who provides services to international clients. Here’s the document list:

You can find a detailed explanation of the<a href="https://www.skydo.com/blog/compliance-guideline-for-inward-remittance#what-are-the-documents-required-for-inward-remittance-in-india"> documents required for inward remittance in India right here</a>

How Do You Receive Inward Remittance in India?

There are three primary means to receive foreign inward remittances in India:

Let’s explore each medium and the steps in collecting inward remittances in India.&nbsp;

Banks are one of the most popular ways of transferring money from overseas to India. To receive inward remittance you must share your Indian bank account details like account number, bank and branch name, and <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT code</a> with the sender. You can find the<a href="https://www.skydo.com/swift-code-finder"> SWIFT code of your bank right here.&nbsp;</a>

<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives">PayPal supports</a> over 100 currencies and has gained popularity in India as a medium to receive inward remittances. You can use the PayPal website or download their app to receive foreign remittances. Link your bank account to PayPal, so that you can withdraw money when you like.

I<a href="https://www.skydo.com/blog/virtual-account-numbers">nternational virtual accounts</a> are like digital gateways linked to your real bank account. They don’t store money themselves—when funds are credited, they’re transferred to your bank account. With platforms like Skydo, you can use virtual accounts to receive payments in different foreign currencies, making cross-border transactions simple and hassle-free.

The cost of processing inward remittances varies across banks and can include charges like SWIFT fees, <a href="https://www.skydo.com/blog/forex-markup-fee-explained">forex markups</a>, and additional service fees. For business payments, it’s crucial to understand these charges, as they are often borne by the recipient.

Here’s a breakdown of inward remittance charges at popular Indian banks:

Understanding these fees can help you plan your payments better and avoid unexpected deductions.

PayPal Charges for Receiving Inward Remittance

PayPal also comes with a hefty price tag for receiving foreign remittances in India especially when it comes to business payments. It charges a flat 4.4% transaction fee on every transaction. Additionally, you have to bear a fixed fee, which depends on the currency and a currency <a href="https://www.skydo.com/blog/currency-conversion-fees">conversion fee</a> of 4% on the current exchange rate. To get an in-depth explanation of each charge, check out our blog on<a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives"> PayPal India Charges</a>.

International virtual accounts Charges for Receiving Inward Remittance

Virtual accounts do not charge SWIFT fees because it’s treated as a local transfer making it a more affordable option. Here’s a quick breakdown of how much Skydo charges for receiving international payments via virtual accounts:&nbsp;

With Skydo, for payments up to USD 2,000, you pay $19. For payments between 2,000 to 10,000, you pay $29 and for payments above USD 10,000 only 0.3% fee is levied. So for a USD 5000 inward remittance, you can expect to receive INR 5,424 more compared to banks and INR 32, 862 more compared to PayPal.

Is There Tax on Inward Remittance in India?

Are you supposed to<a href="https://www.skydo.com/blog/decoding-gst-on-foreign-exchange"> pay taxes on inward remittances</a>? According to the income tax rules for international remittances, it depends on the purpose of the remittance. We have covered three different scenarios to give you a snappy overview:

Find out <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">how to receive foreign payments in India.</a>&nbsp;

How Much Inward Remittance is allowed in India?

According to the framework set by RBI for<a href="https://www.skydo.com/blog/online-payment-gateway-service-provider-opgsp?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link"> Online Payment Gateway Service Providers</a> (OPGSP), there are no limitations on personal transfers.&nbsp; However, <a href="https://www.rbi.org.in/commonman/English/scripts/FAQs.aspx?Id=1692#:~:text=There%20is%20no%20limit%20on,lakh%20for%20trade%20related%20transactions.">as per RBI</a>, there is a cap of INR 15.00 lakh for trade-related transactions.

Receive Business Inward Remittance Seamlessly with Skydo

For an exporter or a freelancer, paying hefty charges for inward remittances is a huge loss to their earnings. They deserve a platform that offers <a href="https://www.skydo.com/blog/unlock-transparent-pricing-and-maximize-cost-savings-with-skydo">transparent pricing</a> and advanced features for invoicing.<a href="https://www.skydo.com/"> Skydo</a> fits the requirements perfectly and is a trusted partner for business owners looking to scale their revenue from international clients.

SWIFT is slow, costly, and unpredictable. Skydo gives you local rails with flat fees and zero intermediary deductions.

SWIFT money transfer is the most popular way to send and receive money across borders.&nbsp; The Society for Worldwide Interbank Financial Telecommunications (SWIFT), a member-owned cooperative, ensures secure and reliable transactions worldwide. It is important to understand that SWIFT is not a bank that holds money. Rather it is a messaging network that facilitates the movement of funds across borders.&nbsp;

 In this blog, we’ll understand how SWIFT operates and its significance in global payments, as well as explore faster and more cost-effective alternatives.

What is SWIFT Money Transfer and How Does it Work?

Back in 1973, 239 banks came together to create SWIFT—a secure messaging network that helps banks communicate and process international transactions smoothly.

It is like a global banking language that ensures money transfers happen safely and efficiently across borders. Today, most countries rely on SWIFT for secure <a href="https://www.skydo.com/blog/cross-border-payments">cross-border payments</a>.

In simple terms, when you hear "SWIFT money transfer," it’s just another way of saying an <a href="https://www.skydo.com/blog/international-wire-transfer-all-you-need-to-know">international wire transfer</a> that happens through the SWIFT network.

Let’s break it down with an easy example!

Say you're an exporter in Bangalore with an Axis Bank account, and a US client wants to pay you via SWIFT. They’ll need your account number and branch-specific SWIFT code.&nbsp;

The client’s bank, Bank of America, sends a secure SWIFT message to Axis Bank, instructing them to process the payment. Once received, Axis Bank credits the amount to your account

A SWIFT code is a unique 8- or 11-character alphanumeric identifier assigned to banks and financial institutions and it is a very important aspect of SWIFT money transfer. It contains essential information about the institution’s country, location, and branch.

Here is the breakdown of two SWIFT codes for a better understanding:&nbsp;

SBININBB101: This unique code refers to the State Bank of India’s Mumbai office. "SBIN" is the bank code, "IN" stands for India, "BB" indicates Mumbai, and "101" denotes the branch in a specific locality.&nbsp;&nbsp;

DEUTDEFF500: This SWIFT code belongs to Deutsche Bank's Frankfurt branch in Germany. "DEUT" represents the bank, "DE" is for Germany, "FF" signifies Frankfurt, and "500" indicates the specific branch at Bad Homburg, a town in the Frankfurt region.&nbsp;&nbsp;

&nbsp;SWIFT money transfers are widely regarded as safe. The SWIFT network is trusted globally for secure international financial transactions. Here's why:

Strong Encryption: SWIFT uses encryption to protect your transaction details, making sure that only the intended bank can see the information.

Tight Access Control: Not just anyone can use the SWIFT network—only verified banks and financial institutions have access, minimizing the risk of unauthorized transfers.

Global Trust: SWIFT adheres to international regulations, which helps ensure that your transfer is handled according to the highest standards.

Fraud Monitoring: The system constantly monitors for unusual activity to help prevent fraud before it happens.

While the SWIFT network is highly secure, it's crucial to double-check the details you provide to avoid errors or delays.

Step-by-Step Process of Making a SWIFT Money Transfer

Making a SWIFT transfer is similar to a local bank transfer but requires some extra details. Here’s how to do it:

Contact your bank or log in to your online banking portal to start a SWIFT transaction. You’ll need to provide the recipient’s name, bank name, address, unique SWIFT code, currency, and the transfer amount.

Your bank will verify the details and check if you have sufficient funds.

Once everything is verified, the bank will debit the amount from your account and provide a confirmation message or reference number.

The funds are then sent via SWIFT to the recipient’s bank. After verification, the recipient's bank will credit the amount to their account.

What Are the Charges for a SWIFT Money Transfer?

Broadly, <a href="https://www.skydo.com/blog/why-was-a-certain-amount-deducted-from-my-swift-payment">SWIFT charges</a> can be broken down under the following heads:

It's important to clarify that SWIFT&nbsp; fees vary by bank. Each institution sets its own charges for outward transfers. Here are some popular Indian banks and their SWIFT charges:

<a href="https://www.icicibank.com/personal-banking/accounts/outward-remittance/wire-transfer?no_follow=true">Source</a>

<a href="https://www.hdfcbank.com/personal/pay/money-transfer/remitnow/fees-and-chargesno_follow=true">Source</a>

PNB’s SWIFT money transfer fee stands at INR 500 + GST. However, it is worth mentioning that additional commissions ranging from INR 500-1000 may also be levied depending on the amount that is being sent abroad.&nbsp;

Yes Bank’s charges for SWIFT money transfers depend on the type of savings account you have. The following table shows the different types of YES savings accounts and their corresponding SWIFT charges:

How Long Does a SWIFT Money Transfer Take?&nbsp;

While <a href="https://www.swift.com/news-events/press-releases/swifts-cross-border-payments-processing-speed-surpasses-g20-target" target="_blank">SWIFT claims</a> that 89% of international transactions are processed within an hour, that doesn't tell the full story. The clock only starts when the sender’s bank sends the payment to the SWIFT network and stops when the receiver’s bank acknowledges it. After that, your bank will contact you for ‘disposal instructions.’ This may require you to submit documents, fill out forms, or deal with forex rate fluctuations. As a result, the entire process can take up to 5 business days or more, with additional delays caused by factors like:

Therefore, it is always a good idea to double-check relevant information to receive your SWIFT payments in a timely manner.

SWIFT vs. Other Money Transfer Methods: Which is Better?

While the SWIFT payment system is the go-to for cross-border money transfers, its high costs and longer processing times have prompted businesses to seek alternatives. One viable solution is i<a href="https://www.skydo.com/blog/virtual-account-numbers">nternational virtual bank accounts.</a> Platforms like Skydo offer businesses free virtual accounts in major regions, including the US, UK, Europe, Canada, Australia, and Singapore. These virtual accounts operate like local bank accounts, allowing businesses to receive payments via local transfers instead of incurring SWIFT fees.

For instance, if your client is in the US, they can make a local transfer to your US-based virtual account, avoiding SWIFT fees and delays. Skydo consolidates these payments and transfers the funds to India at live forex rates, ensuring exporters receive the full amount without losses from unfavourable exchange rates. The converted funds are deposited directly into your local Indian bank account within 48 hours, providing a fast, cost-effective, and transparent alternative to SWIFT.

In conclusion, while SWIFT money transfers remain a popular choice for international transactions, alternative solutions like virtual bank accounts offer speed and cost savings. Consider switching to Skydo for a seamless payment experience.

Karbon Business (formerly Karbon Card) hit the market in 2019, aiming to simplify <a href="https://www.skydo.com/blog/b2b-payments-strategy-checks-to-digital">b2b payments</a> for Indian businesses and freelancers. They’ve since expanded into international payments too. But what exactly does Karbon bring to the table? In this blog, we’ll break down their features, pricing, and how they stack up against alternatives. Let’s dive in!

What does Karbon Business (Formerly Karbon Card) do?

Karbon Business initially started as a corporate card platform, hence the name Karbon Cards. However, since then they have expanded into other b2b offerings including facilitating international business payments for companies and freelancers. It offers both inward and outward remittance services. Let's take a quick look at Karbon Card’s offerings, compliance and pricing:&nbsp;

Karbon Business lets freelancers and businesses <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">receive international payments</a> directly into their Indian bank accounts within 24-48 hours. They’ve partnered with big names like IDFC Bank, Visa, and JP Morgan Chase to streamline cross-border transactions.

It is important to note that currently, Karbon business <a href="https://www.karboncard.com/accept-international-payments-india">only supports payments in USD</a>&nbsp;via virtual bank accounts, and they plan to add 12 more currencies soon. However, businesses can still accept payments in 38+ currencies via card and payment options through Karbon Business.&nbsp;&nbsp;

With Karbon,&nbsp; businesses make international payments in over 30 currencies. Whether it’s paying employees, contractors, or vendors abroad, Karbon promises a competitive and compliant way to make <a href="https://www.skydo.com/blog/cross-border-payments">cross-border payments</a>.&nbsp;&nbsp;

Karbon Business provides corporate cards and payout services tailored for businesses. With Karbon Card, you get up to ₹15 Cr in free credit and unlimited employee cards. Their Karbon Payouts feature enables vendor payments on credit, 24/7 payouts, and more, offering flexibility for business transactions.

Karbon Business is a reliable option for receiving international payments in India. It is backed by partnerships with trusted global institutions and adheres to strict safety and privacy protocols to protect your funds.

Coming to compliance, Karbon Business also offers&nbsp; <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">FIRA for each transaction</a>.

What is Karbon Business (Formerly known as Karbon Cards) Fees?

Karbon Business offers live forex rates with a <a href="https://www.karboncard.com/accept-international-payments-india">flat 1% fee</a> for receiving international payments. While the pricing sounds competitive, the costs can stack up quickly for larger transactions. For example, receiving $10,000 would cost you $100 in fees, while a payment of $1000 would cost you $10 in fees

For outward remittance too, Karbon business charges a <a href="https://www.karboncard.com/outward-remittance-india">fee of upto 1%</a>.&nbsp;

Karbon Business Alternatives for Receiving International Payments&nbsp;

Now that we’ve explored Karbon Business, its fees, and features, let’s dive into some alternatives to see if there’s a better option for receiving international payments.

Founded in 2005, <a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees">Payoneer</a> is a leading payment solution for businesses and freelancers worldwide. It facilitates international transfers by providing users with virtual bank accounts in multiple currencies and integrating with leading marketplaces like&nbsp; Amazon and Walmart&nbsp;

In terms of fees, Payoneer offers free account setup, but transaction fees apply: Payoneer-to-Payoneer payments are free, <a href="https://www.payoneer.com/en-in/about/pricing/">credit card payments</a> incur a 3.2% + $0.49 fee, ACH Bank Debits (US) cost 1%, and virtual account payments are free for EUR/GBP but up to 1% for USD.&nbsp; Withdrawals to local bank accounts attract up to a<a href="https://www.payoneer.com/en-in/about/pricing/"> 3% fee for different currencies.</a> Extra charges like bank or intermediary fees may apply. An annual fee of $29.95 is charged if total payments received are below $2,000 in a year.

To simplify compliance, Payoneer offers free digital FIRAs to Indian businesses and freelancers.&nbsp;

Skydo is a global payment solution designed to simplify cross-border payments for freelancers and businesses in India. It offers virtual <a href="https://www.skydo.com/blog/seamless-payment-experience-with-international-bank-accounts">international bank accounts</a> in under 5 minutes and provides a comprehensive payments ecosystem, including payment tracking, invoice generation, and more.

Skydo stands out with live Forex rates and zero currency conversion fees or hidden charges, offering a transparent fee structure that makes it a strong Karbon business alternative in India.

To ensure compliance with RBI and government regulations, Skydo provides free, instant FIRAs available for download after every transaction. Each user is also assigned a dedicated representative to assist with onboarding and address any queries promptly.

However, Skydo currently supports only <a href="https://www.skydo.com/blog/inward-remittance-in-india">inward remittances</a> to India, meaning Indian businesses cannot use it for outward payments.&nbsp;

<a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">Wise (formerly TransferWise) </a>operates in over 80 countries, offering multi-currency accounts for individuals and businesses. Originally a peer-to-peer remittance platform, it has evolved into a global money transfer solution.&nbsp;

Wise stands out for using mid-market exchange rates without markups, charging a conversion fee averaging around 1-2% of the transfer value. It also provides <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide">digital FIRAs </a>for compliance (e.g., $2.50 for USD transfers), making it a strong alternative to Karbon Business.

While <a href="https://www.skydo.com/blog/top_5_wise_alternatives_for_international_payment">Wise</a> boasts a<a href="https://www.forbes.com/advisor/in/banking/wise-review/"> user-friendly interface </a>and efficient transfers, some users on review platforms have reported <a href="https://www.g2.com/products/transferwise/reviews?utf8=%E2%9C%93&amp;filters%5Bnps_score%5D=1#survey-response-9454134?no_follow=true">occasional challenges with customer support</a> responsiveness. Not that these reviewers do not reflect Skydo's opinion

In today’s world, where domestic payments are as easy as a quick scan, international transactions should be just as effortless. At Skydo, we’re not just offering a payment platform, we’re building an ecosystem designed to simplify every step of the process. Let us take care of the payment logistics so you can focus on scaling your business globally.

Before choosing an international payment provider, always compare fees, exchange rate markups, features, and reliability. Your business deserves nothing but the best!

Confused about finding the correct IBAN for international transfers? Get instant help based on your specific bank.

Updated on: 27th November 2025

If you’ve been searching for the IBAN number of Indian banks like HDFC IBAN Number, Bank,<a href="https://www.skydo.com/blog/iban-number-meaning-full-form"> IBAN number </a>of SBI, ICICI bank IBAN number, Axis Bank IBAN Number, or Canara Bank IBAN Number, here’s what you need to know: India does not use the IBAN system. IBAN (<a href="https://www.skydo.com/blog/seamless-payment-experience-with-international-bank-accounts">international bank account</a> Number) is primarily used in Europe and some other regions for facilitating <a href="https://www.skydo.com/blog/cross-border-payments">cross-border payments</a>.&nbsp;

HDFC Bank does not provide IBAN numbers, as India does not use the IBAN system for international transactions. Instead, you will need the SWIFT code, account number, and branch details to receive foreign payments. The SWIFT code for HDFC bank’s Mumbai Headquarter is HDFCINBB:

Click here to find the <a href="https://www.skydo.com/swift-code-finder">right SWIFT code for your bank</a>

SBI does not have IBAN numbers because India’s banking system operates with SWIFT codes and <a href="https://www.skydo.com/blog/is-ifsc-and-swift-code-same">ifsc codes</a> for international and domestic transactions. Foreign clients sending payments to SBI accounts will need the SWIFT code and account details instead of an IBAN.

&nbsp;The SWIFT code for SBI’s Agartala branch is SBININBB476:

Axis Bank, like other Indian banks, does not support the IBAN system. Cross-border payments to Axis Bank accounts require SWIFT codes and account information, not IBAN numbers.

&nbsp;The SWIFT code for Axis Bank’s Ahmedabad branch is AXISINBB008:

ICICI Bank, like all other Indian Banks, does not offer an IBAN number. Cross-border payments to ICICI Bank accounts require SWIFT codes and account information, not IBAN numbers.

&nbsp;The SWIFT code for ICICI Bank’s Delhi branch is ICICINBB007:

Canara Bank does not use or provide IBAN numbers, as India’s international payment system relies on SWIFT codes. You’ll need to share your SWIFT code, branch details, and account number to <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">receive international payments</a>.

&nbsp;The SWIFT code for Canara Bank’s Bangalore branch is CNRBINBBLFD:

Indian banks use alternative identifiers like <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide#what-is-a-swift-money-code">SWIFT codes</a> for international transactions and IFSC codes for domestic transfers. Since India does not follow the IBAN system, these codes ensure seamless routing of payments within and outside the country.

While IBANs are commonly required for cross-border payments to many countries, international transfers to Indian banks only require the recipient’s account number, SWIFT code, and bank address. Providing these details accurately ensures smooth processing and avoids delays or rejections. You can also r<a href="https://www.skydo.com/">eceive SWIFT payments via Skydo</a> seamlessly. You can also find the<a href="https://www.skydo.com/swift-code-finder">&nbsp;right SWIFT code for your bank right here</a>.&nbsp;

How Skydo Simplifies International Payments

Managing international payments through traditional banks can be complicated and expensive for Indian businesses and freelancers. Skydo offers a more practical alternative—virtual accounts in 7+ regions that make it easier for your global clients to pay you without the need for IBANs.

&nbsp;With real-time FX rates and no hidden <a href="https://www.skydo.com/blog/forex-markup-fee-explained">forex markups</a>, you keep more of what you earn. Our flat fees—$19 for payments under $2,000 and $29 for payments up to $10,000—mean no unpleasant surprises.

Plus, we ensure 100% compliance with Indian regulations and provide instant FIRA at no extra cost. With Skydo, international payments become simple, cost-effective, and stress-free, letting you focus on growing your business without worrying about banking complexities.

IFSC is for India, SWIFT is international. Skydo skips SWIFT with local accounts in major currencies.

Whether you’re sending money back home or paying a remote employee, you’ll need either an IFSC code or a SWIFT code based on where you’re transferring the funds. Both codes ensure a secure and standardised way to transfer money between accounts, but they’re NOT the same. Let's break down the key differences between SWIFT and IFSC codes.

Difference between SWIFT Code and IFSC Code: Explained

<a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide" target="_blank">SWIFT code&nbsp;</a>is a unique 8- or 11 character alphanumeric code that is assigned to banks and financial institutions. The SWIFT code in a standardised format contains essential details about the country, location&nbsp;and branch of a bank.&nbsp;

SBININBB101: This unique code refers to the State Bank of India’s Mumbai office. "SBIN" is the bank code, "IN" stands for India, "BB" indicates Mumbai, and "101" denotes the branch in a specific locality.&nbsp;&nbsp;

DEUTDEFF500:&nbsp;This SWIFT code belongs to Deutsche Bank's Frankfurt branch in Germany. "DEUT" represents the bank, "DE" is for Germany, "FF" signifies Frankfurt, and "500" indicates the specific location of the bank branch at Bad Homburg, a town in the Frankfurt region.&nbsp;&nbsp;

A SWIFT code (also known as a <a href="https://www.skydo.com/swift-code-finder">BIC</a> code) is a unique identification code used to identify financial institutions worldwide. It plays a critical role in facilitating secure and efficient international money transfers between banks across different countries.

How SWIFT Codes Work in International Transactions

When your overseas client initiates an international payment, they will need your bank's SWIFT code to complete the transaction. Here's how the process works:

To ensure seamless international transactions, always provide your clients with accurate bank details, including the correct SWIFT code and branch information.

Know more about how to do a SWIFT transaction&nbsp;<a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">right here.</a>

You can also find the&nbsp;<a href="https://www.skydo.com/swift-code-finder" target="_blank">SWIFT code for your bank right here.</a>

IFSC, or the Indian Financial System Code, is an 11-digit code with alphanumeric characters, that uniquely identifies each bank branch in India. It's essential for online transfer of funds via NEFT, RTGS, and IMPS, ensuring accurate identification of both the sending and receiving bank branches for smooth transactions.

Each bank branch in India has its own unique IFSC code. Here's what it signifies:

Here is the breakdown of two IFSC codes for a better understanding:&nbsp;

ICIC0000837:&nbsp;This unique code refers to ICICI Bank’s Park Street office in Kolkata. ICIC is the bank code, the fifth character of, 0 is for future use and the last 6 characters, 000837 denote the branch code.&nbsp;

HDFC0000053: This unique code refers to HDFC Bank’s Koramangala office in Bangalore. HDFC is the bank code, the fifth character, 0,&nbsp;is for future use and the last 6 characters, 000053 denote the branch code.&nbsp;

The IFSC code is essential for domestic fund transfers between bank accounts in India through <a href="https://www.skydo.com/blog/differences-between-neft-and-rtgs">RTGS and NEFT systems</a>. Every time you send money to another bank, you'll need the beneficiary's bank name, account number, and IFSC code. It's a simple yet crucial part of making sure your funds reach the right account.

Can I use IFSC instead of SWIFT for international transfers?

No. IFSC is not recognised by foreign banks as a routing code; they need SWIFT/BIC. Some foreign portals optionally ask for IFSC in addition to SWIFT when sending money to India, but SWIFT is the primary international identifier.

ICIC0000837:&nbsp;This unique code refers to ICICI Bank’s Park Street office in Kolkata. "ICIC" is the bank code, the fifth character of, 0 is for future use and the last 6 characters, 000837 denote the branch code.&nbsp;

HDFC0000053: This unique code refers to HDFC Bank’s Koramangala office in Bangalore. "HDFC" is the bank code, the fifth character, 0,&nbsp;is for future use and the last 6 characters, 000053 denote the branch code.&nbsp;

Yes, the BIC (Bank Identifier Code) is the same as the SWIFT code. Both are used interchangeably and are used globally for international transfers.&nbsp;

Receive international payments Swiftly and seamlessly with Skydo

While SWIFT is the standard for cross-border payments, its high fees and slow processing times drive businesses toward better alternatives. Skydo offers a smarter solution with free&nbsp;<a href="https://www.skydo.com/blog/virtual-account-numbers" target="_blank">virtual accounts</a>&nbsp;in key regions like the US, UK, Europe, and more. These accounts allow businesses to receive payments via local transfers, bypassing costly SWIFT fees and delays.

For example, a US client can send a local transfer to your US virtual account, and Skydo consolidates and transfers the funds to India at live forex rates, ensuring full value. The money reaches your Indian bank account within 48 hours—faster, cheaper, and more transparent than SWIFT. Switch to Skydo today!

large_nikita-kachanovsky-DXj9KrzecHo-unsplash.jpg

medium_nikita-kachanovsky-DXj9KrzecHo-unsplash.jpg

small_nikita-kachanovsky-DXj9KrzecHo-unsplash.jpg

thumbnail_nikita-kachanovsky-DXj9KrzecHo-unsplash.jpg

nikita-kachanovsky-DXj9KrzecHo-unsplash.jpg

Cash flow is the lifeblood of any business, and late <a href="https://www.skydo.com/blog/cross-border-payments">cross-border payments</a> can bleed through your operational costs. From missed opportunities to strained relationships, delays in foreign or <a href="https://www.skydo.com/blog/inward-remittance-in-india">inward remittances</a> have a significant impact.

This blog unpacks the payment system intricacies across key markets, to help you navigate the global payment maze and avoid costly delays.

Time Taken For Inward Remittances Worldwide&nbsp;

The central banks of various countries have set frameworks and policies to ensure seamless and secure financial transactions. Like India’s NEFT and RTGS, major countries have their payment networks with distinctive processing times and cost structures. 

Here are the major countrywide payment systems with their processing times.&nbsp;

<a href="https://www.skydo.com/blog/everything-about-ach-payments?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Automated Clearing House, or the ACH network,</a> is an interconnected computer system that communicates with each other to help transfer or receive payments within the US.&nbsp;

The ACH network has evolved from person-to-person payments to allow individuals to utilise the network to make bill payments, pay salaries to employees or make mortgage repayments.&nbsp;

mediaLibraryStrapi

<a href="https://www.federalreserve.gov/paymentsystems/fedach_about.htm">The National Automated Clearing House</a>, or NACH, governs the payments executed through the ACH network.&nbsp;

Payments made through ACH usually take 1-3 business days to settle. Such payments, called standard ACH payments, differ in cost structure from same-day ACH, which settles the payments on the same day but comes with a higher fee.&nbsp;

<a href="https://tfx.treasury.gov/taxonomy/term/10659#:~:text=The%20Originating%20Depository%20Financial%20Institution,party%20to%20its%20ACH%20operator.">ODFI (Originating Depository Financial Institution)</a> settles regular ACH payments at 8:30 AM on the following business day after initiating debit requests and settles credit requests at 8:30 AM on the following second business day.

<a href="https://www.skydo.com/blog/everything-about-fps-bacs">The Faster Payments Service (FPS)</a> allows the settling of digital financial transactions between two bank accounts registered in the UK. The FPS payment network includes three stakeholders that ensure the successful transaction settlement:

<a href="https://www.wearepay.uk/what-we-do/payment-systems/faster-payment-system/">Using the Faster Payment Systems,</a> individuals can send up to £1 million, if the bank accounts of both parties are registered in the UK.&nbsp;

FPS payments are settled almost immediately after payment initiation. However, some payments may take up to two hours. Although the upper limit is £1 million, banks set their limit for the maximum amount entities can send per transaction or daily using FPS.

Unlike ACH, which carries an average <a href="https://tipalti.com/payments-hub/ach-fees/#ach-payment-processing-cost">cost of $0.29 per transaction</a>, FPS payments are free for retail customers but carry a fee of <a href="https://www.hellozai.com/blog/a-guide-to-faster-payments-service-fps#:~:text=Although%20Faster%20Payments%20are%20free,two%2C%20however%2C%20is%20speed.">around £2.50 per transaction</a> for corporate customers.&nbsp;

<a href="https://www.skydo.com/blog/what-are-sepa-transfers?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">SEPA, or The Single Euro Payments Area</a>, is a payment network to send and receive payments electronically within Europe. The transfer happens in Euros between two banks or financial institutions in the Eurozone (European region).&nbsp;

Thirty-six countries are members of the SEPA network, and the two bank accounts should be registered in any of the member countries for the SEPA transfers to be completed.&nbsp;

<a href="https://www.ecb.europa.eu/paym/integration/retail/sepa/html/index.en.html">SEPA transfers</a> are generally free of cost, and users can transfer a maximum of €100,000 in one single payment using the Instant Credit facility.&nbsp;

The processing time for SEPA transactions differs based on the four types of payment processing schemes, which are;&nbsp;

Similar to the US, ACH payment networks also allow settling funds in CAD within two bank accounts in Canada. Canada <a href="https://www.payments.ca/payment-resources/iso-20022/automatic-funds-transfer#:~:text=Payments%20Canada%20has%20developed%20the,continued%20support%20throughout%20the%20process.">AFT (Automated Fund Transfer)</a> is another cost-effective and convenient solution.&nbsp;

AFT, called Canada’s version of the ACH, works for both CAD and USD and transfers AFT files three times a day. Once the Canadian banks receive the AFT file, they must process <a href="https://www.linkedin.com/pulse/aft-going-forward-dan-dickinson">payments within two hours.&nbsp;</a>

<a href="https://www.pnc.com/insights/corporate-institutional/go-international/ten-things-you-need-to-know-about-payments-in-canada.html">AFT transactions in Canada</a> include electronic payments, such as direct deposits, bill payments, wire transfers, and online banking transactions. Canadian Payments Association (now part of Payments Canada) oversees and facilitates the electronic payment systems in the country.

<a href="https://www.rba.gov.au/payments-and-infrastructure/new-payments-platform/">The New Payments Platform (NPP)</a> was launched in February 2018 as an open-access infrastructure for executing fast payments within Australia.&nbsp;

The NPP enables businesses, households, and government agencies to make simple, near real-time fund transfers 24/7 with no cut-off time. NPP differs from other payment networks as it carries much richer remittance information with each payment message.&nbsp;

In 2022, <a href="https://nppa.com.au/the-company/">NPP merged with BPAY Group</a> and EFTPOS to form the Australian Payment Plus. More than 100 financial institutions offer NPP-enabled financial services to their customers in Australia.&nbsp;

<a href="https://nppa.com.au/faqs/">NPP comes with no transaction limit,</a> but banks can set their own per-transaction or daily limit as per their operating policies. There is no fee involved in making NPP transactions, but banks can set a specific cost for transactions made via products and services on the New Payments Platform.

Before choosing the right payment network, you should compare them based on the urgency of transaction settlement, amount, sender/receiver location, and fee.&nbsp;

Ensure that all recipient information is accurate and complete. Double-check the recipient's name, address, account number, and any other required details.

Initiate remittance transactions well in advance, especially if specific deadlines or time-sensitive requirements exist. Stay informed about the regulatory requirements for inward remittances in both the sending and receiving countries.	

Maintaining open lines of communication with both the sender and recipient and any intermediaries involved in the process can also prove ideal in avoiding processing delays.&nbsp;

Understanding the nuances of remittance worldwide is vital for seamless business transactions, as most countries have payment networks similar to India’s<a href="https://www.skydo.com/blog/differences-between-neft-and-rtgs?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link"> RTGS or NEFT.</a> As these payment networks differ in their processing time and cost structure, they can significantly affect the time taken for inward remittances.&nbsp;

Accuracy in recipient information, early initiation of transactions, and a comprehensive understanding of compliance checks form the foundation for minimising delays. Furthermore, it is vital to analyse and compare the payment networks based on factors such as transfer amount, urgency, and the requirement for bank accounts.&nbsp;

Ans: Remitter meaning in bank refers to the individual or entity that is sending or initiating a remittance. The remitter could be an individual sending money to family members, a business making international payments, or anyone involved in the process of transferring funds across borders.

Q2. What fees are associated with cross-border payments?

Ans: There are numerous <a href="https://tipalti.com/mass-payments-hub/cross-border-payments-guide/">costs associated with cross-border transactions,</a> such as bank fees, transfer fees, currency conversion fees, exchange fees, international money transfer platform fees, and international debit or credit card fees.&nbsp;

Q3. What are the most common payment methods for international transactions?

Ans: The most common payment methods include wire transfers, international debit/credit cards, and online payment platforms.

Co-op banks serve domestic well. For international receivables, Skydo offers local accounts abroad with flat fees.

Anyonya Sahayakari Mandali Co-operative Bank, the first one in India, was established in 1889 with 23 members and INR 73 to save Baroda’s residents from exploitation by moneylenders.

True to its name, cooperative banking is a small financial institution that operates on the principles of cooperation, mutual assistance, and shared ownership among the members. Group members commonly start cooperative banking to cater to the capital needs of a specific community. The members own, operate, and are responsible for all the activities executed through the cooperative banks, and the board members are democratically elected to manage operations.&nbsp;

The main motive behind establishing such institutions was to address the problem of rural or local credit and cater to the capital needs of artisans, farmers, daily wage laborers, and anyone with limited means. The Indian government amended the Cooperatives Societies Act in 1912 to include organizations to audit and supervise the supply of cooperative credit. These organizations were:&nbsp;

As per RBI &amp; NABARD (Aug 2025), India has around 1,457 Urban Cooperative Banks (UCBs), 34 State Co-operative Banks (StCBs), 351 District Central Co-operative Banks (DCCBs) and one industrial co-operative bank, all under RBI/NABARD supervision.

Cooperative banks differ from traditional commercial banks’ ownership structure, governance, and primary objectives.&nbsp;

Operation and Services of Cooperative Banks&nbsp;

Cooperative banks strive to provide all the basic banking services a traditional bank provides but at a much more affordable rate.&nbsp;

Cooperative banks generally focus on the low-income segments. Here are some of the major advantages of cooperating banks and their financial services:&nbsp;

Growing Global

Understanding Global Payments blogs