P1006 purpose code guide: Business & management consultancy and public relations services

When your consultancy or PR firm gets paid by international clients, your bank requires you to specify the RBI purpose code for the transaction. Selecting the right code—specifically, P1006 for business consultancy and PR services—is essential to avoid payment delays, compliance issues, and unnecessary scrutiny.

Think of the purpose code as a declaration to your bank and the RBI about the nature of the work you've delivered. Without it, a routine international payment can get stuck in limbo. Your client in Singapore pays you for a market entry strategy, but if your remittance form doesn't clearly state P1006, your authorised dealer bank may flag it for review, hold the funds, or ask for additional documentation. That's friction you don't need—especially when you're scaling your consultancy or PR practice globally.

This blog unpacks why the P1006 purpose code matters for your consulting and PR payments, what services it covers, and practical steps to use it correctly with your authorised dealer bank. Whether you're managing recurring client fees, invoicing multiple international projects, or expanding your footprint across new geographies, understanding this regulatory requirement will keep your Winvesta transactions smooth and compliant. No delays. No surprises. Just seamless payments for the expert work you deliver.

Understanding the scope of the P1006 purpose code

What is the P1006 purpose code under RBI guidelines?

The Reserve Bank of India (RBI) requires purpose codes to classify all foreign exchange transactions under the Foreign Exchange Management Act (FEMA). The P1006 RBI purpose code is specifically used when remitting money overseas for business consultancy or public relations services. It helps the RBI track the nature of outward remittances and ensures compliance with FEMA regulations.

When a business in India makes a payment to a foreign consultant or PR agency, the authorised dealer bank (usually your bank) uses the declared purpose code to determine if the transaction is permitted. If the wrong code is used, the bank may reject the transaction or flag it for review. That’s why knowing the correct category—like purpose code P1006 for consultancy—isn't just good practice, it's mandatory.

Types of services covered under P1006

The P1006 purpose code covers a broad range of professional services that fall under business management and public relations. These include:

• Management consulting and strategic advisory
• Market entry strategy and feasibility studies
• Business process reengineering
• Public relations campaigns and media outreach
• Brand positioning and communication consultancy

For instance, if you hire an overseas PR firm to manage your company’s image during a product launch abroad, that would fall under the P1006 purpose code. Likewise, paying a consultancy to evaluate your pricing strategy or global expansion plan also qualifies.

Examples of eligible transactions

Here are common use cases where the p1006 RBI purpose code applies:

• Receiving payment from a UK client for PR campaign management at their B2B conference in Europe
• Getting paid by a Singapore firm to assess their supply chain risks and provide operational recommendations
• Invoicing a US-based company for competitive benchmarking and market analysis
• Collecting fees from an Australian corporation for brand messaging and communications strategy

If your business sends funds overseas for strategy, branding, crisis management, or market research, chances are P1006 is the right code. Using it correctly can prevent unnecessary scrutiny from your bank or RBI.

In the next section, we’ll look at why getting the purpose code P1006 right isn’t just about ticking boxes—it affects compliance, payment timelines, and your relationship with financial institutions.

Why the P1006 purpose code matters for consultancy firms

Ensuring compliance and avoiding regulatory penalties

Misreporting foreign payments can create unnecessary compliance issues for your business. If you choose the wrong code, banks may flag the transaction, delay approvals, or, in severe cases, trigger reporting obligations to the RBI. Proper use of the purpose code P1006 helps you avoid these outcomes.

Consultancy firms often handle multiple cross-border payments in a year. Consistent and accurate classification using the p1006 rbi purpose code avoids red flags during audits. Additionally, adhering to FEMA reporting standards reduces the risk of penalties and demonstrates your commitment to international regulations.

Think of it like this: using the wrong code is like filing your taxes under the wrong occupation—it may work once or twice, until it doesn’t.

Streamlining international transactions

Foreign payments can already be complex due to currency conversion, paperwork, and approval procedures. Getting the p1006 purpose code right keeps things smoother at the bank level. The authorized dealer (AD) bank uses these codes to decide if it can directly approve a transaction—or if it needs RBI approval first.

Imagine a consulting firm in India pays a U.S. partner for a strategic business plan. If the payer selects the correct code (P1006), the bank knows it’s a permitted service and likely processes it faster. This consistency avoids emails, clarifications, and delays that can stretch a three-day payment into a two-week ordeal.

Timely payments also help build better working relationships with international partners, who depend on predictable cash flow.

Building trust with banking institutions

Banks rely on consistent coding for their reporting. If you frequently submit incorrect or mismatched information, your account may be flagged for closer monitoring. On the other hand, the correct use of purpose code P1006 strengthens your credibility.

When banks trust your documentation, they're more likely to process payments with minimal intervention. They may even extend better service terms, faster clearance, or fewer document requests on repeat transactions.

Next, let’s see how using services covered under the P1006 purpose code—like management consultancy and PR—can directly benefit your business performance.

How to correctly use the P1006 purpose code in cross-border remittances

Filing with the AD Bank and using Form A2

Once you've decided to pay for consultancy or PR services abroad, make sure you're selecting the proper RBI purpose code. In this case, that’s the p1006 rbi purpose code.

When remitting funds, you'll need to complete Form A2. This form is submitted to your Authorised Dealer (AD) bank. It's used to declare the nature of your foreign remittance and includes a drop-down or code field where you must select purpose code P1006 for services like consulting or PR work.

Don’t guess. Most AD banks will have staff who can confirm if your service falls under P1006. If your transaction involves strategic advice, image consulting, or press relations, it likely qualifies.

• Request invoice copies and service agreements
• Cross-check the service description with RBI circulars
• Add a clear narration in the remittance reference field

This documentation supports classification and helps avoid later audits or holds on your transfer.

Common errors to avoid

Mistakes in code selection can delay payments or lead to penalties. A frequent error is choosing IT support or marketing codes instead of the p1006 rbi purpose code when the service is actually a business strategy or PR advisory engagement.

Another issue: vague remittance reasons. For example, using "consulting fees" without specifying the nature of the consultancy can raise red flags. Instead, use concise phrases like “PR campaign planning – invoice ABC123.”

Also, keep every invoice, email trail, or contract related to the remittance. These can help your AD bank validate the service in case the RBI seeks clarification.

Want to learn more about Purpose code P1501: Refunds and rebates on imports, read here.