Key takeaways
All foreign inward payments must route through an AD Category-I bank under FEMA, 1999; every collection method ends there.
As of June 2026, the export proceeds realisation window is restored to 9 months, but shifts again when FEMA 2026 takes effect on October 1, 2026
Non-bank payment aggregators must hold RBI's PA-CB authorisation; using one without it is a FEMA violation
SaaS exports use purpose codes P0802 or P0807; an incorrect code can freeze a transaction
Filing a GST LUT (Form RFD-11) before invoicing saves paying 18% IGST upfront
The Reserve Bank of India changed the export proceeds realisation window three times between November 2025 and October 2026. If you run an Indian SaaS startup billing foreign subscribers, that single regulatory shift affects your cash flow planning, your bank compliance, and the documentation your chartered accountant needs at year-end. Before picking a payment method, you need to understand the rules governing every rupee coming in from abroad.
India’s Expanding Software Services Exports: India’s technology-led services exports continue to expand, with telecommunications, computer, and information services exports reaching USD 206.6 billion in FY 2025-26. As more technology businesses serve international customers, reliable cross-border payment processes become increasingly important.
What are the options for receiving international payments in India?
Under the Foreign Exchange Management Act, 1999, every inward foreign payment must ultimately settle at an AD Category-I bank in India. The method you choose determines cost, speed, and documentation burden.
The table below compares the three primary methods available to SaaS exporters.
Method | How it works | Typical cost | Settlement speed |
|---|---|---|---|
SWIFT bank wire | Client's bank sends funds directly to your AD bank via SWIFT | Forex markup 1.5-3.5% + possible intermediary deductions | 2-7 business days |
PA-CB authorised aggregator | Aggregator collects locally in client's currency, remits to your Indian bank | Varies by provider; usually includes MDR + forex | T+2 to T+5 depending on provider |
EEFC account + wire | Foreign receipts held temporarily in foreign currency before INR conversion | No conversion cost until you choose to convert | Immediate credit; conversion on your schedule |
SWIFT bank wire is familiar and widely accepted, but forex markups of 1.5-3.5% at Indian private banks compound quickly across monthly subscription billings.
PA-CB authorised aggregators provide another way to collect international payments. The RBI introduced the PA-CB framework via circular RBI/2023-24/80 in October 2023, replacing the earlier OPGSP model. Under this framework, cross-border payments can be collected by AD Category-I banks or non-bank entities that hold specific RBI approval. As of early 2026, approximately 20 entities hold this authorisation. Using a provider without the required approval can create FEMA compliance risks.
EEFC accounts allow you to retain foreign currency earnings without immediate conversion, subject to RBI limits. The October 2025 amendment also allows exporters to retain proceeds for up to three months in foreign currency accounts held with banks in an International Financial Services Centre (IFSC), per India Briefing's analysis of the October 2025 RBI amendment.
How to collect payments from global users for an Indian SaaS product?
Collecting international payments for a SaaS product involves four compliance steps alongside the technical setup.
Step 1: Choose the right purpose code
Every inward remittance must carry an RBI-mandated purpose code under FEMA reporting requirements. For SaaS startups, two codes apply: P0802 covers software consultancy, development, and SaaS subscriptions; P0807 covers software products or services developed in India and delivered electronically. Assign the wrong code and your bank may hold the payment pending clarification, which delays settlement and triggers documentation requests.
Step 2: File your GST LUT before invoicing
Export of services is a zero-rated supply under Section 16 of the IGST Act, 2017, meaning you charge 0% GST but retain the right to claim input tax credit. To export without paying IGST upfront, file a Letter of Undertaking using Form RFD-11 on the GST portal before your first export invoice of the financial year. An LUT is valid from April to March; renew it before April 1 each year. Without a valid LUT in place, that period's exports cannot be treated as zero-rated.
Your supply must meet all five conditions under Section 2(6) of the IGST Act to qualify as export of services: supplier in India, recipient outside India, service delivered outside India, payment received in convertible foreign exchange, and supplier and recipient are not merely distinct persons.
Step 3: Track your realisation deadline
Under FEMA 23(R)/(8)/2026-RB dated June 5, 2026, export proceeds from services must be realised within 9 months from the date of export for transactions occurring after the June 2026 amendment and before October 1, 2026, when FEMA 2026 takes effect. Your AD bank can grant extensions for genuine reasons, but missing the deadline without an extension attracts FEMA penalties.
Step 4: Obtain an eFIRA for every transaction
Your AD bank or PA-CB aggregator issues an eFIRA (electronic Foreign Inward Remittance Advice) for each foreign receipt. This document is required for GST LUT compliance, income tax filing, and any FEMA audit. Keep them organised per transaction.
What changed in 2025-2026 that every SaaS exporter must know
Two regulatory changes affect how SaaS exporters receive and manage international payments.
Export realisation period: Three revisions in under a year
On November 13, 2025, FEMA 23(R)/(7)/2025-RB increased the export proceeds realisation period from 9 months to 15 months for all exports, including software services. The June 5, 2026 amendment (FEMA 23(R)/(8)/2026-RB) brought it back to 9 months until October 1, 2026, when FEMA 2026 is expected to introduce a 15-month period again.
How it affects SaaS exporters: SaaS exporters must track the applicable deadline for each export payment. The deadline determines how long you have to receive foreign subscription payments and complete export compliance.
Consolidated PA Master Direction (September 2025)
The RBI Master Direction RBI/DPSS/2025-26/141 brought different payment aggregator rules under one framework. Merchants onboarded before December 31, 2025, must meet the updated due diligence requirements by September 15, 2026. If your payment aggregator has not confirmed its PA-CB authorisation, verify it before using the platform for international payments.
How it affects SaaS exporters: You need to use an approved payment partner to avoid compliance issues when collecting payments from overseas customers.
How Jio Payment Solutions helps SaaS exporters collect global payments
Managing international payments requires SaaS exporters to handle purpose codes, eFIRA records, FEMA reporting, and compliant payment channels. Jio Payment Solutions helps simplify this process by enabling businesses to collect payments from overseas customers while supporting the documentation requirements linked to cross-border transactions.
With features such as automated eFIRA and T+2 settlement, Jio Payment Solutions helps SaaS exporters manage payment records and receive international collections more efficiently while staying aligned with compliance requirements.
Start collecting international payments the right way
Receiving international payments as a SaaS exporter requires more than choosing a payment method. You need to follow FEMA requirements, use the correct purpose code, maintain eFIRA records, and ensure your payment partner follows RBI guidelines. By setting up the right process from the beginning, you can reduce compliance issues, manage overseas collections smoothly, and build a reliable payment flow as your SaaS business grows globally.