What is Inward Remittance notification? List of Purpose Code for Inward Remittance

Inward Remittance

The State Bank of India has started sending out messages of SBI Inward remittance to YouTube creators as well as blog creators. It has created a panic situation among the creator who are all waiting for their paycheck from Google AdSense. The creators in a Dilemma will they’ll get their AdSense payment credited to their bank account or not. 

Well, there is no need to panic as everyone will get their Paycheque in time from Google. The foreign inward remittance refers to money sent into an account by someone from abroad. The Remittances of money into India are governed by the Foreign Exchange Management Act (FEMA). The SBI inward remittance Message reads.

Dear SBI Customer, this is an advance intimation of an inward Remittance of USD XXX value Date 20210823. Please contact branch with Relevant Documents

What is an Inward Remittance?

What is inward Remittance

Inward remittance refers to the transfer of money to any Indian Bank from abroad. The Person or Company (Ex: Google) who is transferring or sending money to your bank account (Ex: SBI) is making an outward remittance. For those who are receiving money like you, it is an inward remittance.

In terms of AdSense, Google transfers your funds to the SBI New York branch, from where it is subsequently credited to your or your beneficiary’s account held within the extensive network of over 24,000 State Bank of India branches.

Feature of Inward remittance

  • The money received by you in your Bank account from a foreign country is known as an inward remittance.
  • The Maximum limit on inward remittances for all resident individuals, including minors is up to USD 2,50,000 per financial year (April – March).
  • Banks can charge a fee for facilitating the remittance. 
  • According to Money Transfer Service Scheme (MTSS), you can receive a maximum of 30 inward remittances in a calendar year. 

Purpose of Inward remittance

The remittance or flow of money from one country to another Ex. from a foreign country (like the U.S.A.) to Home Country (India). A certificate is issued known as FIRC (Foreign Inward remittance certificate) which banks give as proof of a transfer of funds from overseas to India. The Document (Certification) is used as evidence of money flowing in and out of the country. It helps make necessary checks that funds come from legitimate sources and don’t have links to crime or terrorism.

What should a receiver do in case of Inward Remittance?

inward remittance sbi

The notification you got regarding inward remittance is just an advance notice before the amount is credited to your bank account. The amount will be automatically credited within 48 hours (Mostly in 24 hours), and they’re nothing to do more. It doesn’t mean that your amount is on hold.

In case you don’t receive the amount credited to your bank within one week. Then you need to contact the Bank or your Nearest Branch regarding it. As stated, the Remittances of money into India are governed by the Foreign Exchange Management Act (FEMA).

Thus, you are required to fill out the SBI FEMA Document, which you can download below. As per Foreign inward remittance RBI guidelines, it is essential to fill out FEMA documents. So, even if you have already received the money successfully, then you should also fill out this form.

How to Submit FEMA Document 

1. Download the SBI FEMA Document from here.

2. Fill out the form with all the necessary details.

3. In the case of Adsense, you need to Print out your last Payment Receipt, which you can find in the Payment then Transaction section. 

4. Xerox of Pan Card (Optional)

5. You can send FEMA document via email.

Note: Ever since the government stopped providing physical FIRC in 2016, banks have exclusively been issuing electronic FIRC (e-FIRC).

After submitting all the necessary documents to the bank, you will receive the due payment within 24 hours. 

What to write in remittance instructions SBI

  1. The appropriate SWIFT code, as per the following format.
  1. An 11-digit account number for the beneficiary (with the initial digit not being zero).
  1. The full name and complete address of the beneficiary.
  1. The SBI Branch Code or IFSC Code.

What is the Purpose Code?

A purpose code is an essential code issued by RBI, which is a prerequisite for the successful completion of cross-border transactions. To transfer funds to your local Indian bank account, it is important to have this purpose code duly specified. The good thing is, you only have to do it once, and it will automatically be used for all your payments.

List of Purpose Code for Inward remittance

Regarding freelance work, the codes are fixed at either P0103 or P1006, which represent “Business and management consultancy” and “public relations services”. If you’re uncertain about which one is right for you, then simply use the P0103 purpose code. While blogger and freelance writer should use P0805 purpose code.

However, you can find a complete list of purpose codes for remittance. Here are some important purpose codes related to freelancer and PayPal that might be useful.

 CodeCategoryDescriptionWho should be using it
P0104Export of GoodsValue of export bills negotiated / purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.)Amazon merchants, jewellers, sellers of collectibles and other such products through Amazon and your own websites / catalogues globally. Please note: Cross-border shipment of goods and services for which you file GR /PP/SOFTEX /EC forms only should be processed with this code.
P0301Travel , Hospitality and ToursPurchases towards travel (Includes purchases of foreign TCs, currency notes etc over the counter, by hotels, hospitals, Emporiums, Educational institutions etc. as well as amount received by TT/SWIFT transfers or debit to Non-Resident account).Online Travel Agents, Airlines, Railways, Buses, Taxicab Services, Hotels, B&Bs and other travel / tourism related sales through PayPal.
P0801 P0802 P0803Information TechnologyComputer Information Services. Hardware / Software /Data Processing consultancy/implementationIf you are an independent / freelance coder /hardware consultant or data processing service provider, or a small business providing such services for websites globally, please use these codes. For all IT related consulting services where you know you do not need to file a SOFTEX form, please use the appropriate code. 801 for hardware consulting, 802 for software consulting and 803 for data management and processing consulting services.
P0805 P0806Content and JournalismNews Agency and Subscription servicesIf you are a freelance journalist / blogger /news aggregator please use this purpose code for withdrawals. If you are a newspaper or an online news aggregator for websites overseas, please use the appropriate code from these two. 805 if you a freelance journalist, and 806 if you are a newspaper/aggregator.
P0902Licensing of creative worksReceipts for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films)Artists, designers, other creative service providers where the principal revenue mode is license fees.

Other servicesAdvertising, trade fair, market research and public opinion polling servicesMarketing/ brand consulting /logo design /event management services can be exported with this purpose code
P1008Research & Development servicesIf you are an outsourced research and development services provider based in India, receipts can be inwarded through this purpose code.
P1009Architectural, engineering and other technical servicesAny other technical services such as eTutoring, education and other services you render over the internet via web conferencing tools or similar channels, please use this code for your withdrawals.

SBI Bank contacted me to fill FEMA form

On 25/04/2022, I received a call from the SBI Main Office situated in my city. They began by asking if you expect this money, $xxx, to be deposited into your bank account. They informed me to fill out the FEMA document and asked for my email address after they confirmed the amount.

I received the mail within an hour and filled out all of the required information (if you need assistance filling out the form, please let me know in a comment) and sent it to the given email address. After two days, I was able to remove all of the holds from my account and got the Google AdSense and Ads related funds directly into my account.

If you’re wondering if they asked for any further documents, the answer is ‘No.’ I wasn’t asked to produce any additional paperwork, such as an AdSense payment receipt or a Xerox of my PAN card.

I hope that you got what you were looking for. If we have missed something or you have any additional details on it, you can comment down below. I always like to hear our viewers. 


What documents are required for inward remittance?

The bank only requires a PAN card, and even that is optional; no other documents are necessary.

Is Foreign inward remittance have time limit?

Yes, Foreign inward remittance has six month of time limit.

Is FIRC mandatory for freelancers?

Yes, freelancers who receive foreign payments must obtain an FIRC as it serves as evidence for foreign remittances. This requirement applies to freelance bloggers, artists, and sellers who receive payments from abroad.

Shashank Sharma
Shashank is a tech expert and writer with over 8 years of experience. His passion for helping people in all aspects of technology shines through his work. He is also the author of the book "iSolution," designed to assist iPhone users. Shashank has completed his master's in business administration, but his heart lies in technology & Gadgets.

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