TL;DR
Bank wire (SWIFT): Universal — works with any bank on earth, no new account needed. Costs stack from multiple directions (sender fee, intermediary bank deductions, receiving bank markup), and you often have to request your own FIRA. Best for a one-off, large, infrequent payment.
Remit Circle: A collection account built specifically for receiving from overseas clients, converting near the mid-market rate, with FIRA generated automatically per payment. Best for freelancers and software/SaaS businesses billing overseas clients on a regular basis. (Confirm current pricing on the site — figures move.)
When to Use P0102
Use P0102 when you have shipped goods, the export bill was sent for collection (not negotiated or discounted upfront), and the foreign buyer has now remitted payment. Common scenarios:
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- A textile exporter who sent DP bills via their bank and is now receiving payment from the overseas buyer
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- A manufacturer who accepted DA terms (buyer pays on a future date) and the due date payment has arrived
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- An Indian IT company receiving fixed-fee payments for building a custom software application for a foreign business
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- Realisation of export proceeds that were previously reported as bills sent for collection under P0105
Quick check: If your bank pre-financed you against shipping documents, that was P0101. If you waited for the buyer to pay and the money has now arrived, it’s P0102.
Wrong Code? Use These Instead
| If your money is from… | Correct code to use |
|---|---|
| Bank negotiated / discounted export bill (bank pre-paid you) | P0101 |
| Advance payment received from buyer before shipment | P0103 |
| Export receipts without a shipping bill (samples, small gifts) | P0104 |
| Export bill sent for collection but NOT yet realised | P0105 |
| Realisation of an overdue export bill | P0107 |
Documents to Keep Ready
| Document | Why you need it |
|---|---|
| Shipping bill / Bill of lading | Primary export document confirming goods were dispatched |
| Commercial invoice | Records the value and terms of the export |
| Bank’s collection advice / SWIFT MT754 | Confirms the buyer’s bank has remitted the payment |
| Export Declaration Form (EDF) | FEMA-mandated declaration for all goods exports |
| e-FIRA | Official proof of inward remittance tagged with purpose code P0102 |
| KYC documents | For entities operating in IT Standard bank requirement — PAN, IEC, business registration |
What is an e-FIRA — and Why Does It Matter?
An e-FIRA (Electronic Foreign Inward Remittance Advice) is the official proof that foreign money entered India. It confirms the nature and purpose of the inflow, which matters for tax treatment, FEMA compliance, and audit trails.
Your bank generates it automatically once the funds land. You can usually download it from your internet banking portal or request it at your Forex desk. The e-FIRA will reflect the correct purpose code, which your CA or accounts team will reference during filings.
Did you know? Some banks take days to issue an e-FIRA. With Remit Circle, you can download yours instantly — at no charge — the moment your payment is credited. → Get your free e-FIRA via Remit Circle
Receive Inward Remittances Compliantly with Remit Circle
Getting the purpose code right on an inward remittance isn’t just a formality — a mismatch can cause payment holds, RBI queries, or incorrect tax treatment. Remit Circle is built to handle this for you.
Instant e-FIRA — Download your Foreign Inward Remittance Advice the moment funds are credited. No waiting on the bank, no Forex desk visits. Free.
Correct purpose code, every time — Remit Circle flags the right code for your transaction type before the payment is processed, so there are no mismatch holds at the bank.
Multi-currency support — Receive in USD, EUR, GBP, AUD and more. Funds settle directly into your Indian bank account at competitive rates.
Compliance-ready records — Every transaction comes with a clean audit trail — purpose code, amount, date, counterparty — so you and your CA are always on the same page.
Start receiving international payments with Remit Circle
Open a free account in minutes. No minimum balance, no hidden fees. Get your e-FIRA instantly on every inward remittance.
Open your free Remit Circle account →
Frequently Asked Questions
Q: What is RBI purpose code P0102?
P0102 is used when an Indian goods exporter receives payment from an overseas buyer for a bill that was sent for collection — meaning the bank did not pre-finance the exporter and the proceeds are now being realised from the buyer directly.
Q: What is the difference between P0101 and P0102?
P0101 is for when your bank advances you money upfront by negotiating or discounting the export bill. P0102 is for when your bank simply collected the payment from the overseas buyer on your behalf — no advance was given.
Q: What is the difference between P0102 and P0105?
P0105 is used when the export bill has been sent for collection but payment has not yet been received. P0102 is used once that payment actually arrives — it’s the realisation of what was reported as P0105.
Q: Do I need to close my Export Declaration Form (EDF) when I receive funds under P0102?
Yes. Under FEMA regulations, export proceeds must be realised within the stipulated period (generally 9 months from the date of shipment for most exporters). When P0102 funds are received, your AD bank will use this to close the corresponding EDF.
Q: What if the buyer pays only partially?
Partial realisations are permissible but must be reported. Each partial payment will be tagged P0102. If the remaining amount remains overdue beyond the RBI-permitted period, you may need to apply for an extension or write-off through your AD bank.
Q: Can P0102 be used for service exports?
No. P0102 is specific to goods (merchandise) exports. Payments for software, consulting, or other service exports are covered by different purpose codes — P0807 for off-site software/freelance, and P10xx codes for professional services.
