Personal Finance Money transfer

Guide to RBI Purpose Codes for International Transfers to and from India

Aditya Shrivastava

10.04.25 (last updated)

Read time 1 minute

Sending money internationally to or from India? You'll need to select the right Purpose Code for your transfer. This is a key requirement from the Reserve Bank of India (RBI) to ensure transfers are processed smoothly and comply with regulations. This guide explains why these codes matter and how Wise can help simplify your international money transfers.

What are RBI Purpose Codes?

Think of RBI Purpose Codes as labels for international money transfers in India. Mandated by the Reserve Bank of India, these codes classify the reason for the transfer. There are separate sets of codes depending on whether money is coming into India (inward remittance/receipt) or going out of India (outward remittance/payment).

List of RBI Purpose Codes for International Remittances

For comprehensive lists and explanations tailored to your transfer direction, refer to these guides:

Accuracy is key: Double-checking that you've selected the best-fitting reason for your remittance helps prevent potential delays or questions about your transfer.

Why Purpose Codes are Important

Selecting the correct Purpose Code is essential for a few key reasons:

Smooth Processing: Correct codes help banks and services like Wise route your money efficiently, avoiding delays.
Regulatory Compliance: It's an RBI requirement, ensuring transfers meet India's foreign exchange rules (FEMA).
Clear Tracking: Codes help authorities understand money flows into and out of the country.

Basically, be clear about the exact purpose of your transfer (e.g., family support, paying tuition fees...). Choosing the right code helps ensure your money transfer proceeds without unnecessary hassle.

Your money transfer service will usually prompt you to pick one when you set up your transfer. Platforms like Wise build this step right into their process, making it easy to ensure your transfers are compliant.

INR Purpose Codes Supported by Wise 👉

Meet Wise: Convenient Option for International Transfers

Wise offers convenient international money transfers with mid-market exchange rates and low, transparent fees — integrating transfer purpose selection directly into the process.

Send Money with Wise 🚀

Wise can help you in several ways:

For people living abroad: You can send money to India directly to bank accounts or UPI IDs, often at better rates than traditional banks or money transfer services.
For Indian residents: You can send money from India for allowed purposes like education, travel, and medical expenses with a fully online process and digital KYC.
For Indian businesses and freelancers: A Wise Business account gives you local account details in multiple currencies (USD, EUR, GBP, and more), so you can receive payments from international clients as if you had a local bank account in their country.

And if you're living abroad, check out the Wise multi-currency account available for residents living in supported countries. Enjoy an account as worldly as you are and spend just like a local when you travel abroad with a linked debit card, while also paying less in fees.

Source: RBI Purpose Codes for Reporting FOREX Transactions.

Cover photo by Ishant Mishra on Unsplash.

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