Accept GBP Payments in India with Ease
Receive GBP payments quickly, convert at better rates, and avoid banking hassles with Karbon’s multi-currency account.
According to the UK government, the UK is one of India’s top trading partners with a bilateral trade of £36 billion in 2023. Yet many Indian businesses still struggle with outdated banking processes, hidden forex markups, and settlement delays of 2–5 business days. Whether you’re an exporter, freelancer, SaaS company, or service provider, accepting GBP payments is crucial for your business.
But receiving GBP payments in India isn’t always easy. Most banks require foreign currency accounts while some payment gateways charge high fees for international transactions.
In this post, we’ll explore the best ways for Indian businesses to accept GBP payments efficiently, cost-effectively, and as per RBI regulations.
As UK-India trade grows, Indian businesses are seeing a growing need for GBP payment solutions. To avoid unnecessary fees and delays, businesses need to opt for smarter options.
From multi-currency accounts to payment gateways and international money transfer services, here’s a rundown of the best ways to receive GBP in India:
For Indian businesses getting payments from the UK, Karbon’s multi-currency account is the way to go. Unlike traditional banks which require separate foreign currency accounts and charge high forex conversion fees, Karbon allows businesses to receive GBP directly without unnecessary conversions or delays.
✅ Get GBP instantly – No intermediary banks, no settlement delays.
✅ Lower forex markup – Avoid bank-imposed conversion fees.
✅ No hidden fees – Transparent pricing.
✅ No separate foreign currency account required – Receive and hold GBP in a single multi-currency account.
✅ GBP to INR conversion – Convert when you need to at competitive rates.
With Karbon, businesses can bypass traditional banking hassles and get faster payments, lower costs, and a smoother global transaction experience. If you’re an exporter, freelancer, or service provider, do look into Karbon as a way of accepting GBP payments easily.
For large businesses with high-value transactions, opening a foreign currency account with an Indian bank is a good way to receive GBP payments. Major banks like HDFC, ICICI, SBI, and Kotak Mahindra offer Foreign Currency (FCY) Accounts or Exchange Earners’ Foreign Currency (EEFC) Accounts, where businesses can hold GBP without converting it immediately.
Eligibility: Available to export businesses, service providers, and companies with regular forex inflows.
Documents Required: Business registration, PAN, GST certificate, proof of transactions, and KYC compliance.
Settlement & Conversion: Businesses can hold GBP and convert it to INR.
Issues: High bank charges, longer processing time, and very strict compliance.
For online businesses, payment gateways are the best way to accept GBP payments. Platforms like Razorpay, Payoneer, Stripe, and Wise support GBP transactions, ideal for e-commerce stores, SaaS businesses, and freelancers.
Razorpay – Integrates with Indian bank accounts but charges Forex conversion fees.
Payoneer – Offers virtual GBP accounts but has withdrawal limits and fees.
Wise – Low-cost international transfers with mid-market forex rates.
Stripe – Best for global businesses but requires international business entities.
Transaction Fees & Settlement Time:
Issues: Higher fees compared to direct bank transfers and some business categories restricted.
For businesses that don’t need a dedicated payment gateway or bank account, international remittance services like Wise, Revolut, and PayPal offer a simple way to receive GBP payments.
Comparison:
Wise – Low-cost GBP transfers with mid-market rates and no hidden fees.
Revolut – Receive GBP in the multi-currency wallet but require a UK-based account for full functionality.
PayPal – Easy transactions but 3.5%–4.5% forex fees; most popular & expensive option.
Issues: These platforms have higher forex fees and account limitations for Indian businesses. They also struggle with handling customer disputes or chargebacks.
For exporters with UK clients, Letters of Credit (L/C) and Bills of Exchange are the way to get paid in GBP through banks. These are ideal for bulk shipments and long-term contracts as it ensures payment upon delivery of goods.
How It Works:
Letter of Credit (L/C): Buyer’s bank guarantees payment when you submit shipment proof.
Bill of Exchange: You draw a bill on the buyer and they accept for future payment.
Exporters need to submit invoice copies, shipping documents, and export declarations to their bank.
Issues: Complex paperwork, longer processing times, and banking fees make it unsuitable for small transactions.
These are the major ways Indian businesses can get paid in GBP. The best option depends on transaction volume, business type, and cost. Karbon’s multi-currency account makes GBP payment easier with faster settlements and lower forex fees—a more efficient option than banks or high-cost payment gateways.
When you receive GBP payments in India, you need to comply with RBI regulations under FEMA. Compliance not only saves you from legal issues but also helps in smooth fund transfers without delays.
RBI monitors all forex transactions under FEMA to ensure transparency and prevent money laundering. When you receive GBP payments, you need to:
Purpose Code – Payments should be categorized under a specific purpose code (e.g., P0103 for software exports, P0802 for business services).
Exporter Declaration Forms (EDF) – Export businesses need to file an EDF with their bank for payments above ₹25 lakh (approx. £24,000).
Liberalized Remittance Scheme (LRS) Limitations – You cannot receive GBP payments into personal accounts, as LRS applies only to individual remittances
RBI Reporting for Large Transactions – Any foreign inflow above ₹7 crore (approx. £670,000) may be subject to RBI scrutiny under AML laws.
Receiving GBP payments in India has tax implications and you need to keep proper documentation for compliance.
Foreign Inward Remittance Certificate (FIRC) – Required for exporters and freelancers to prove receipt of foreign payments.
GST Compliance – If the service is an export under GST laws, you can claim zero-rated GST by filing a Letter of Undertaking (LUT).
Income Tax – Forex earnings are taxable under the Income Tax Act, 1961 and you need to report them under income from business and profession.
Not complying with RBI and tax regulations will result in penalties, delayed settlements, or funds being frozen by banks. Always choose an RBI-regulated financial institution (like Karbon) to receive GBP payments.
Accepting GBP in India depends on your business. Big enterprises may need foreign currency accounts, and freelancers and e-commerce sellers may prefer payment gateways. But these come with high fees and long processing times.
For businesses looking for fast, low cost and hassle free solution, Karbon’s multi-currency account is the way to go. With transparent pricing, quicker settlements, and no unnecessary paperwork, Karbon helps Indian businesses make more profit and save forex costs.
Final Tip: Always compare forex rates, transaction fees, and settlement time before choosing a payment solution. A smarter choice today can save you thousands in the future! Take a quick look at our dashboard to understand how Karbon works with GBP payments.
No, Indian regulations under FEMA do not allow businesses to receive foreign payments in personal savings accounts. You need a business current account, a foreign currency account or a multi-currency account to legally receive GBP payments.
The cheapest way to convert GBP to INR is through multi-currency accounts or low-forex markup services like Karbon and Wise. Traditional banks charge hidden fees and high conversion rates, so they are more expensive.
No, you don’t need a UK bank account. You can receive GBP payments in India through a multi-currency account, an EEFC account, or payment platforms like Wise or Payoneer which provide virtual GBP-receiving accounts.
Large GBP transactions may be flagged for AML (Anti-Money Laundering) compliance if they exceed certain thresholds (e.g., ₹7 crore or approximately £670,000). Make sure your documents are in order and use a regulated payment solution to avoid issues.
To avoid fraud always:
%20(1).png)
