For many Indian businesses today—exporters, SaaS companies, consultants, freelancers, IT service providers—their global customers can be sitting anywhere in the world. But while the internet has made selling globally easier, one thing still feels surprisingly outdated: remittance.
The act of receiving money from abroad often feels like a journey through a maze. You issue an invoice, the client pays, and then… silence. Days pass, sometimes weeks. You check your account repeatedly. You refresh your banking portal hoping today is the day. And just when you think the payment is lost, it quietly shows up—often with deductions you didn’t expect.
If this sounds familiar, you’re not alone. Across hundreds of conversations with Indian SMBs, the frustration around remittance is almost universal. What should be a simple transfer ends up feeling unpredictable and opaque.
In this detailed guide, we break down why remittance gets delayed, what’s happening behind the scenes, and—most importantly—how you can receive international payments in India faster, with fewer surprises and much more clarity.
1. Why Remittance Gets Delayed in India (The Real Story)
To make remittance faster, you must understand where friction is actually happening. Most delays are not random—they have clear causes that can be prevented.
1. Multiple Intermediary Banks Involved
When a foreign client sends money to India, the payment rarely travels directly. Unlike domestic transfers, international payments often pass through one or more correspondent banks.
Think of these as “middlemen” between your client’s bank and your bank in India.
Every intermediary bank may:
- run its own compliance checks
- hold the payment temporarily
- add small fees
- operate in a different time zone
If one bank is slow, the entire remittance journey gets delayed. This is one of the biggest hidden causes of uncertainty.
2. Compliance and Documentation Checks
Many founders assume receiving money is simple. After all, you are not the sender—so why should you face compliance checks?
But under Indian and international regulations, every inbound remittance must be verified.
Banks in India need to ensure:
- You are a legitimate business
- The sender is legitimate
- The payment matches an invoice
- There is no AML (Anti-Money Laundering) red flag
- The purpose code matches the invoice
- The business complies with FEMA regulations
A small mismatch—like an invoice value differing by ₹500 or an incorrect purpose code—can pause your remittance for days.
3. Incorrect or Missing Purpose Code
Purpose codes are one of the most misunderstood parts of remittance.
They tell the RBI why money is coming into India.
Example codes:
- SaaS revenue → P0802
- IT services → P0803
- Management consulting → P0806
- Goods export → P0101–P0199
If the purpose code doesn’t match the nature of your invoice, the bank does not release the remittance.
This is a silent cause of many delays.
4. FX Conversion Timing
Most Indian banks convert incoming foreign currency into INR only during certain operational windows.
If your remittance arrives after the cut-off time, it gets pushed to the next batch.
This is why payments sometimes appear suddenly the next morning—even if they arrived earlier the previous day.
FX timing alone can add a 24–48 hour delay.
5. Time Zones, Holidays & Banking Cut-Offs
Global payments don’t follow India’s schedule. If your client pays on Friday evening in California, the remittance begins its journey when Indian banks are closed.
Add to that:
- US public holidays
- EU banking delays
- Month-end processing load
- System maintenance windows
and suddenly, the payment you expected “in a day or two” comes after five.
2. How to Receive Remittance Faster in India (What Actually Works)
Fortunately, most delays can be prevented with a few simple steps.
A. Standardise Your Documentation
Missing or inconsistent documents are the #1 reason payments pause for review.
Keep these ready:
- Invoice (matching the remittance)
- Agreement or purchase order
- Bank details exactly as registered
- IEC for exporters
- Your GST details (if applicable)
- Client details
- Purpose code list
Create a shared folder or a pre-formatted pack you send to every new client.
This alone reduces compliance delays dramatically.
B. Always Confirm the Purpose Code Before Invoicing
Many businesses decide the purpose code only when the bank asks for it.
This is too late.
Choose the purpose code before issuing the invoice—that way the invoice, description, and remittance reason all match perfectly.
One mismatch can trigger a manual hold.
C. Choose Payment Methods With Minimum Friction
Not all remittance methods are equal.
Here’s the speed ranking (fastest to slowest):
- A2A cross-border payment platforms (direct settlements)
- Specialised fintech payment partners
- Traditional wire transfers
- Card-based global wallets (like PayPal)
- Cheques or drafts
The more direct the route, the faster the remittance.
D. Guide Your Client on When to Send the Payment
Small changes in timing make big differences.
Ask clients to pay:
- Monday–Thursday
- During morning hours in their country
- Avoiding bank holidays
- Avoiding month-end batching delays
This ensures the remittance begins its journey when both sides are operational.
E. Track Every Remittance
Instead of waiting in the dark, tracking gives you visibility:
- When was it sent?
- Is it stuck at an intermediary bank?
- Is it under compliance check?
- Has FX not been booked yet?
This lets you solve problems early instead of discovering them accidentally days later.
F. Lock FX Rates in Real Time
Waiting for FX conversion is a major cause of payment delays.
When you lock the rate instantly, settlement happens faster—and your revenue remains predictable.
G. Share a Clean, Copy-Paste Format of Bank Details
Surprisingly, one of the most common delay reasons is:
incorrect beneficiary details entered by the client.
Send a precise, copy-paste bank detail sheet to every new client.
You’ll avoid days of unnecessary back-and-forth.
3. What a Smooth Remittance Experience Should Feel Like
Imagine this:
You raise an invoice.
Your client pays.
You get instant confirmation.
You see the remittance in real time.
Your FX gets locked immediately.
No one asks you for surprise documents.
Money arrives on time.
You know exactly what you’ll receive.
This is how global business should work.
Not slow.
Not unpredictable.
Not stressful.
India has already shown what smooth payments look like through UPI.
Cross-border remittance is simply the next step.
FAQs
1. How long does remittance take to reach India?
Typically 1–5 business days, depending on the method, intermediaries, and bank processing.
2. Why is my remittance to India delayed?
Common reasons include incorrect purpose code, compliance checks, missing documents, intermediary bank review, or FX batching delays.
3. What documents are required for remittance in India?
Invoice, agreement/PO, IEC (for exporters), bank details, purpose code, and sometimes client details.
4. Which method is fastest for international remittance to India?
Modern A2A cross-border payment systems are fastest, followed by specialised fintech partners. Wires take longer due to intermediaries.
5. What is a purpose code in remittance?
A code mandated by RBI to classify the reason for receiving foreign funds. Wrong codes cause delays.