02.03 · Concept
Selling From India
Choose a rail for an Indian entity taking money from abroad, and name the licence, the code and the certificate that decide whether you can.
No video curated for this lesson yet
This lesson is written, ordered and part of the path - the video slot is the only thing still open. We are working through Payments lesson by lesson; 26 of 35 have their video so far.
The written notes below cover this idea in full - you lose nothing by reading instead of watching.
An Indian exporter’s foreign payment is valid only when the collection rail, RBI or FEMA purpose code, and bank or provider evidence all line up. Cards, SWIFT, merchant-of-record payouts, and PA-CB providers create different compliance trails, so payment success alone does not prove export revenue.
What this lesson answers
- how can Indian companies accept foreign payments legally
- which purpose code for software exports from India
- do Indian exporters need FIRC for card payments
Notes
Selling From India — Selling from India exists to route foreign customer money through a rail that is legal for an Indian merchant; without the right licence, purpose code, and certificate, 499900 paise can arrive but fail export evidence, settlement, or compliance checks.
Key Concepts: - For an Indian entity selling goods or services abroad, the rail choice is usually between international cards via Visa/Mastercard, PayPal/Paddle-style merchant-of-record collection, SWIFT bank transfer, or RBI-regulated Payment Aggregator–Cross Border under the RBI PA-CB framework.
Common questions
- Can an Indian company just accept international cards like any other merchant?
- Not safely without checking the enabled rail. International Visa or Mastercard acceptance depends on the acquiring setup, scheme rules, and whether the provider is permitted for cross-border collection. A domestic-only payment account may authorise a foreign card but still fail settlement or compliance handling for export proceeds.
- What is the purpose code in an Indian export payment?
- The purpose code is the RBI and FEMA reporting label that tells the bank why foreign money came into India. For software or services exports, the code must match the actual transaction. A wrong code can make valid revenue look like the wrong kind of receipt and complicate export evidence.
- What document proves foreign payment received by an Indian exporter?
- The usual proof is a Foreign Inward Remittance Certificate, e-FIRC, or FIRA issued by the bank or provider. It records details such as amount, currency, remitter, beneficiary, and purpose code. Without it, the seller may have money in the account but weak evidence for export compliance.
Short definition: what is Selling From India?