India purpose of payment guide


IFSC code

The Indian Financial System Code (IFSC) is a unique 11-digit alphanumeric code used to identify a specific bank branch in India. You can find the IFSC code of a particular bank branch in India by checking the bank's website, the Reserve Bank of India's website, or third-party websites. Double-check the IFSC code with the recipient or the recipient's bank before initiating the wire transfer.

It’s important to ensure that the purpose of payment code is accurate and appropriate for the transaction. Incorrect or inappropriate codes can result in delays or even rejection of the transfer.

Purpose of payment code

The Reserve Bank of India (RBI) has mandated the use of purpose codes for all cross-border transactions since 2013. Purpose codes are used to indicate the nature of the transaction being conducted and should be included in the payment details when initiating a wire transfer to or from India. The purpose code should be selected based on the nature of the transaction and should be consistent with the supporting documentation, such as invoices or contracts.

Code

Description

Capital account

P0001

Repatriation of Indian investment abroad in equity capital (shares)

P0002

Repatriation of Indian investment abroad in debt securities

P0003

Repatriation of Indian investment abroad in branches

P0004

Repatriation of Indian investment abroad in subsidiaries and associates

P0005

Repatriation of Indian investment abroad in real estate

P0006

Foreign direct investment in India in equity

P0007

Foreign direct investment in India in debt securities

P0008

Foreign direct investment in India in real estate

P0009

Foreign portfolio investment in India in equity shares

P0010

Foreign portfolio investment in India in debt securities including debt funds

P0011

Repayment of loans extended to non-residents

P0012

Loans from non-residents to India

P0014

Receipts o/a non-resident deposits (FCNRB/NRERA etc.) ADs should report these even if funds are not "swapped" into rupees

P0015

Loans & overdrafts taken by ADs on their own account. (Any amount of loan credited to the NOSTRO account which may not be swapped into rupees should also be reported)

P0016

Purchase of a foreign currency against another currency

P0017

Sale of intangible assets like patents, copyrights, trade marks etc. by Indian companies

P0018

Other capital receipts not included elsewhere

S0001

Indian investment abroad-in equity capital (shares)

S0002

Indian investment abroad-in debt securities

S0003

Indian investment abroad-in branches

S0004

Indian investment abroad-in subsidiaries and associate

S0005

Indian investment abroad-in real estate

S0006

Repatriation of Foreign Direct Investment in India-in equity shares

S0007

Repatriation of Foreign Direct Investment in India-in debt securities

S0008

Repatriation of Foreign Direct Investment in India-in real estate

S0009

Repatriation of Foreign Portfolio Investment in India-in equity shares

S0010

Repatriation of Foreign Portfolio Investment in India-in debt securities

S0011

Loans extended to non-residents

S0012

Repayment of loans received from non-residents (long & medium term loans)

S0013

Repayment of short term loans received from non-residents

S0014

Repatriation of non-resident deposits (FCNRB/N.RERA etc.)

S0015

Repayment of loans & overdrafts taken by ADs on their own account

S0016

Sale of a foreign currency against another foreign currency

S0017

Purchase of intangible assets like patents, copyrights, trade marks etc.

S0018

Other capital payments not included elsewhere

Communication service

P0401

Postal services

P0402

Courier services

P0403

Telecommunication services

P0404

Satellite services

S0401

Postal services

S0402

Courier services

S0403

Telecommunication services

S0404

Satellite services

Computer & information services

P0801

Hardware consultancy

P0802

Software implementation/consultancy (other than those covered in SOFTEX form)

P0803

Data base, data processing charges

P0804

Repair and maintenance of computer and software

P0805

Mews agency services

P0806

Other information services, such as subscription to newspapers, periodicals, etc.

S0801

Hardware consultancy

S0802

Software implementation/consultancy

S0803

Data base, data processing charges

S0804

Repair and maintenance of computer and software

S0805

Slews agency services

S0806

Other information services such as subscription to newspapers, periodicals

Construction service

P0501

Receipts for cost of construction of services projects in India

S0501

Construction of projects abroad by Indian companies including import of goods at project site

S0502

Payments for cost of construction etc. of projects executed by foreign companies in India

Exports (of goods)

P0101

Value of export bills negotiated/purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.)

P0102

Realization of export bills (in respect of goods) sent on collection (full invoice value)

P0103

Advance receipts against export contracts (export of goods only)

P0104

Receipts against export of goods not covered by the GR/PP/SOFTEX/EC copy of shipping bill etc.

P0101

Value of export bills negotiated/purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.)

P0102

Realization of export bills (in respect of goods) sent on collection (full invoice value)

P0103

Advance receipts against export contracts (export of goods only)

P0104

Receipts against export of goods not covered by the GR/PP/SOFTEX/EC copy of shipping bill etc.

P0105

Export bills (in respect of goods) sent on collection

P0106

Conversion of overdue export bills from NPD to collection mode

P0107

Realization of NPD export bills (full value of bill to be reported)

Financial services

P0701

Financial intermediation except investment banking such as bank charges, collection charges, LC charges, cancellation of forward contracts, commission on financial leasing etc.

P0702

Investment banking such as brokerage, underwriting commission etc.

P0703

Auxiliary services such as charges on operation & regulatory fees, custodial services, depository services etc.

S0701

Financial intermediation except investment banking such as bank charges, collection charges, LC charges, cancellation of forward contracts, commission on financial leasing etc.

S0702

Investment banking such as brokerage, underwriting commission etc.

S0703

Auxiliary services such as charges on operation & regulatory, custodial services, depository services etc.

Government not included elsewhere (G.n.i.e.)

S1201

Maintenance of Indian embassies abroad

SI202

Remittances by foreign embassies in India

P1201

Maintenance of foreign embassies in India

P1203

Maintenance of international institutions such as offices of IMF mission, World Bank, UNICEF etc. in India.

Imports

S0101

Advance payment against imports

S0102

Payment towards imports-settlement of invoice

S0103

Imports by diplomatic missions

S0104

Intermediary trade

S0190

Imports below Rs. 500.000 (For use by ECD offices)

Income

P1401

Compensation of employees

P1403

Inward remittance towards interest on loans extended to non-residents (ST/MT/LT loans)

P1404

Inward remittance of interest on debt securities - debentures/bonds/FRNsetc

P1405

Inward remittance towards interest receipts of ADs on their own account (on investments)

P1406

Repatriation of profits to India

P1407

Receipt of dividends by Indians

S1401

Compensation of employees

S1402

Remittance towards interest on non-resident deposits (FCNRB/NRERA/ NRNRD/NRSR etc.)

S1403

Remittance towards interest on loans from non residents (ST/MT/LT loans)

S1404

Remittance of interest on debt securities - debentures/bonds/FRNs etc.

S1405

Remittance towards interest payment by ADs on their own account (to VOSTRO a/c holders or the OD on NOSTRO a/c.)

S1406

Repatriation of profits

S1407

Payment/ repatriation of dividends

Insurance service

P0601

Receipts of life insurance premium

P0602

Receipts of freight insurance - relating to import & export of goods

P0603

Receipts on account of other general insurance premium

P0604

Receipts of reinsurance premium

P0605

Receipts on account of auxiliary services (commission on Insurance)

P0606

Receipts on account of settlement of claims

S0601

Payments for life insurance premium

S0602

Freight insurance relating to import & export of goods

S0603

Other general insurance premium

S0604

Reinsurance premium

S0605

Auxiliary services (commission on insurance)

S0606

Settlement of claims

Other business services

P1001

Merchanting services – net receipts (from sale and purchase of goods without crossing the border)

P1002

Trade related services - commission on exports/imports

P1003

Operational leasing services (other than financial leasing and without operating crew) including charter hire

P1004

Legal services

P1005

Accounting, auditing, book keeping, and tax consulting services

P1006

Business and management consultancy and public relations services

P1007

Advertising, trade fair, market research, and public opinion polling services

P1008

Research & development services

P1009

Architectural, engineering, and other technical services

P1010

Agricultural, mining and on-site processing services such as protection against insects & disease, increasing of harvest yields, forestry services, mining services like analysis of ores etc.

P1011

Inward remittance for maintenance of offices in India

P1012

Distribution services

P1013

Environmental services

P1019

Other services not included elsewhere

S1001

Merchanting services - net payments (from sale & purchase of goods without crossing the border)

S1002

Trade related services - commission on exports/imports

S1003

Operational leasing services (other than financial leasing) without operating crew, including charter hire

S1004

Legal services

S1005

Accounting, auditing, book keeping, and tax consulting services

S1006

Business and management consultancy and public relations services

S1007

Advertising, trade fair, market research, and public opinion polling service

S1008

Research & development services

S1009

Architectural, engineering, and other technical services

S1010

Agricultural, mining, and on-site processing services - protection against insects & disease, increasing of harvest yields, forestry services, mining services like analysis of ores etc.

S1011

Payments for maintenance of offices abroad

S1012

Distribution services

S1013

Environmental services

S1019

Other services not included elsewhere

Others

P1501

Refunds/rebates on account of imports

P1502

Reversal of wrong entries, refunds of amount remitted for non-imports

P1503

Remittances (receipts) by residents under international bidding process

P1590

Receipts below $10,000 (say Rs 5,00,000)

S1501

Refunds/rebates/reduction in invoice value on account of exports

S1502

Reversal of wrong entries, refunds of amount remitted for non-exports

S1503

Payments by residents for international bidding

S1504

Crystallize/cancel export bills

Personal, cultural, & recreational services

S1101

Audio-visual and related services-services and associated fees related to production of motion pictures, rentals, fees received by actors, directors, producers and fees for distribution rights

S1102

Personal, cultural services such as those related to museums, libraries, archives and sporting activities; fees for correspondence courses abroad

P1101

Audio-visual and related services -services and associated fees related to production of motion pictures, rentals, fees received by actors, directors, producers and fees for distribution rights

P1102

Personal, cultural services such as those related to museums, libraries, archives, sporting activities, and fees for correspondence courses of Indian universities/institutes

Royalties & license fees

P0901

Franchises services - patents, copyrights, trade marks, industrial processes, franchises etc.

P0902

Receipts for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films)

S0901

Franchises services such as patents, copyrights, trade marks, industrial processes, franchises etc.

S0902

Payment for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films)

Transfers

P1301

Inward remittance from Indian nonresidents towards family maintenance and savings

P1302

Personal gifts and donations

P1303

Donations to religious and charitable institutions in India

P1304

Grants and donations to governments and charitable institutions established by the governments

P1306

Receipts/refund of taxes

S1301

Remittance by non-residents towards family maintenance and savings

S1302

Remittance towards personal gifts and donations

S1303

Remittance towards donations to religious and charitable institutions abroad

S1304

Remittance towards grants and donations to other governments and charitable institutions established by the governments

S1305

Contributions/donations by the government to international institutions

S1306

Remittance towards payment/refund of taxes

Transportation

P0201

Receipts of surplus freight/passenger fare by Indian shipping companies operating abroad

P0202

Purchases, on account of operating expenses of foreign shipping companies operating in India

P0205

Purchases on account of operational leasing (with crew) - shipping companies

P0207

Receipts of surplus freight/passenger fare by Indian airline companies operating abroad

P0208

Receipt on account of operating expenses of foreign airline companies operating in India

P0211

Purchases on account of operational leasing (with crew) - airline companies

P0213

Receipts on account of other transportation services such as stevedoring, demurrage, port handling charges etc.

S0201

Payments for surplus freight/passenger fare by foreign shipping companies operating in India

S0202

Payment for operating expenses of Indian shipping companies operating abroad

S0203

Freight on imports-shipping companies

S0204

Freight on exports-shipping companies

S0205

Operational leasing (with crew)-shipping companies

S0206

Booking of passages abroad-shipping companies

S0207

Payments for surplus freight/passenger fare by foreign airline companies operating in India

S0208

Operating expenses of Indian airline companies operating abroad

S0209

Freight on imports - airline companies

S0210

Freight on exports - airline companies

S0211

Operational leasing (with crew) - airline companies

S0212

Booking of passages abroad - airline companies

S0213

Payments on account of stevedoring, demurrage, port handling charges etc.

Travel

P0301

Purchases towards travel (Includes purchases of foreign TCs, currency notes etc. over the counter, by hotels, emporiums, institutions etc. as well as amount received by TT/SWIFT transfers or debit to non-resident account)

P0308

FC surrendered by returning Indian tourists

S0301

Remittance towards business travel

S0302

Travel under basic travel quota (BTQ)

S0303

Travel for pilgrimage

S0304

Travel for medical treatment

S0305

Travel for education including fees, hostel expenses etc.

S0306

Other travel (international credit cards)

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