A Complete Guide to SWIFT Transfers for Exporters in India (2026)

In today's global marketplace, SWIFT transfers remain essential for Indian exporters conducting international business. With India's services exports reaching a record $387.5 billion in FY 2024-25—led by $224 billion in IT/ITeS exports—understanding how to receive cross-border payments efficiently directly impacts your bottom line.

This guide explains how the SWIFT network works, the step-by-step process for Indian exporters, current costs and timelines, and modern alternatives that can reduce your payment processing costs significantly.

Understanding SWIFT: the global financial messaging system

What is SWIFT?

SWIFT stands for the Society for Worldwide Interbank Financial Telecommunications. Established on May 3, 1973, by 239 banks from 15 countries, SWIFT is headquartered in La Hulpe, Belgium. Today, it connects over 11,500 financial institutions across 224 countries and territories, reaching more than 4 billion accounts worldwide.

How SWIFT works

SWIFT itself doesn't transfer money or hold funds. It provides a secure messaging system that banks use to communicate transaction information. When you initiate a SWIFT transfer, your bank sends a payment order to the recipient's bank through the SWIFT network. The system processes approximately 53 million messages daily, with a record 59.5 million messages on December 20, 2024.

In November 2025, SWIFT completed its ISO 20022 migration for payment messages, enabling richer transaction data and faster processing. This new messaging standard improves straight-through processing rates and reduces payment errors.

Key components of the SWIFT network

SWIFT Codes (BIC): These unique Bank Identifier Codes identify banks in SWIFT transfers. They consist of 8-11 characters: 4 letters (bank code) + 2 letters (country code, IN for India) + 2 alphanumeric (location) + optional 3 alphanumeric (branch). For example, HDFC Bank's code is HDFCINBB, while ICICI Bank uses ICICINBB.

SWIFT gpi: Global Payments Innovation has transformed transfer speeds. Today, 90% of cross-border payments reach the beneficiary bank within one hour, and 75% arrive within 10 minutes. Over 4,450 financial institutions use gpi, processing approximately $530 billion daily.

Security: SWIFT uses encryption and multi-layered security protocols, achieving 99.999% network availability for financial messages.

SWIFT transfers for Indian exporters: process and requirements

Steps to receive a SWIFT transfer

To receive an international payment via SWIFT, provide your overseas client with your bank's SWIFT/BIC code, your account number, bank name and branch address, your name exactly as it appears on your account, and the purpose code for the transaction.

When your client initiates the transfer, their bank sends the payment instruction through SWIFT. The payment may pass through one or more correspondent banks if direct routing isn't available. Your bank receives the funds, performs compliance checks, converts the currency if needed, and credits your account.

Required documents for exporters

As an Indian exporter, you must obtain an electronic Foreign Inward Remittance Certificate (e-FIRC) when receiving international payments. Since June 2016, banks issue e-FIRCs automatically for export remittances, reporting transactions to RBI's Export Data Processing and Monitoring System (EDPMS).

The e-FIRC contains the beneficiary's name, sender's details, bank information, exchange rate applied, and remittance purpose code. Common purpose codes for service exporters include P0802 (software consultancy), P0803 (database/data processing), and P0807 (off-site software exports under SOFTEX).

Compliance considerations

Ensure your KYC documents are current, including PAN, Aadhaar, address proof, and business registration. For goods exports, you need an Import Export Code (IEC)—though this is optional for services exporters unless you're claiming Foreign Trade Policy benefits.

Export proceeds must be repatriated within 15 months for goods (extended from 9 months per FEMA regulations updated in 2025) and 9 months for services. For GST compliance, file a Letter of Undertaking (LUT) in Form GST RFD-11 by March 31 each year to export services without paying IGST upfront.

The RBI's PA-CB (Payment Aggregator - Cross Border) framework, effective October 2023, sets a transaction limit of ₹25 lakh per unit for cross-border payment aggregators. Only four entities have received PA-CB authorization as of late 2025: Cashfree Payments, Amazon Pay (import only), BillDesk, and Adyen (import only).

Costs and timelines of SWIFT transfers

Fee structure for Indian banks

Indian banks charge varying fees for SWIFT transfers, typically ranging from ₹500 to ₹2,000 before 18% GST:

HDFC Bank charges ₹500 for transfers up to USD 500 and ₹1,000 for larger amounts, plus SWIFT charges and GST. Inward remittance is free, but e-FIRC issuance costs ₹200 plus taxes.

ICICI Bank charges ₹750 for online non-USD transfers and ₹1,000-₹1,500 for branch or USD transactions, plus GST.

Axis Bank charges ₹500-₹1,000 depending on account type, plus ₹500 in SWIFT charges for priority accounts.

State Bank of India charges 0.125% of the transfer amount (minimum ₹125, maximum ₹2,500) plus ₹500 SWIFT charges and GST.

For inward remittances, most banks charge nil or ₹200-₹300. However, intermediary banks along the payment route may deduct $10-$30 before funds reach your account.

Foreign exchange rate considerations

Beyond fixed fees, banks apply markups to the mid-market exchange rate. This hidden cost typically adds 1-3% to your effective transfer cost. HDFC Bank markups range 2-3.5%, ICICI 1.5-2%, and Axis 1.5-2% above mid-market rates.

For a $10,000 payment, a 2% FX markup costs you $200—often more than all other fees combined. This makes the effective total cost of traditional SWIFT transfers 3-5% of the transaction value for Indian exporters.

Typical transfer durations

While SWIFT gpi has dramatically improved speeds—90% of payments reach beneficiary banks within one hour—crediting to your Indian bank account typically takes 1-3 business days. This additional time accounts for local compliance verification, currency conversion, and bank processing.

Factors affecting timing include time zone differences, currency pairs involved, number of intermediary banks, and Indian banking holidays. Complex transfers may take up to 5 business days in edge cases.

Alternatives to SWIFT for Indian exporters

Indian exporters have several alternatives to traditional SWIFT transfers, each with distinct advantages for different business needs.

Global collection accounts

Multi-currency collection accounts offer faster processing and lower costs than traditional banking. These accounts provide local account numbers in major markets, allowing your clients to pay via domestic transfers rather than international wires.

With Winvesta, you receive local US, UK, Canadian, and European (SEPA IBAN) account numbers. For general guidance on receiving payments, see our international wire transfers guide. Your American client sends a domestic ACH transfer; your European client sends a SEPA payment. Each arrives quickly through local payment rails, bypassing SWIFT fees entirely.

Withdraw funds to INR in as little as one day at rates starting at $3 plus 0.99%—significantly cheaper than the 3-5% effective cost of traditional SWIFT transfers through Indian banks.

PayPal

PayPal offers convenience for receiving international payments without visiting a bank. However, fees of 4.4% plus $0.30 per transaction, combined with FX spreads of 3-4%, make it expensive for regular business use. PayPal works best for smaller, occasional payments where convenience outweighs cost.

Credit cards

Accepting international credit cards provides fast payment confirmation but carries high costs: 2-4% merchant fees plus cross-border surcharges of 1-3%. Additionally, international card transactions face rejection rates of 15-25% due to fraud prevention triggers, creating cash flow uncertainty.

Razorpay MoneySaver Export Account

Razorpay's export account charges 1% with 0% FX markup, provides automated e-FIRC within 24 hours, and supports SWIFT, ACH, SEPA, and Faster Payments across 135+ currencies. INR settlement occurs within one business day. For European clients, compare IBAN vs SWIFT for Euro payments.

UPI international linkages

UPI now operates for merchant payments in eight countries: Bhutan, Singapore, UAE, Nepal, Mauritius, Sri Lanka, France, and Qatar. The UPI-PayNow linkage with Singapore involves 19 Indian banks for receiving payments. While currently limited to smaller transactions, UPI international expansion offers a promising low-cost channel for the future.

Making the right choice for your export business

SWIFT transfers remain important for Indian exporters, particularly for large transactions where bank-to-bank transfers provide security and compliance documentation. However, the 3-5% effective cost significantly impacts margins, especially for IT services and consulting businesses with thin operating margins.

Modern alternatives like multi-currency collection accounts reduce costs by 60-80% while providing faster settlement and simplified compliance through automated e-FIRC generation. For the $387.5 billion Indian services export market, choosing the right payment method can mean the difference between competitive pricing and lost business.

Evaluate your payment patterns—transaction sizes, frequency, client locations, and cash flow needs—to select the optimal mix of payment methods. For most service exporters, combining a multi-currency account for regular client payments with traditional SWIFT for occasional large transactions offers the best balance of cost, speed, and flexibility.