Send EUR Payments from India Faster & at Lower Costs
Stop overpaying on forex fees and slow bank transfers. With Karbon Forex, send EUR payments from India at competitive exchange rates, minimal fees, and faster processing times.
India has been seeing a surge in outward remittances with businesses and individuals sending over $31.73 billion in FY 2024 under LRS alone. A significant portion of this is used to send EUR payments from India, primarily for paying European suppliers, freelancers, and business expenses.
As businesses expand globally, Indian companies need to pay European suppliers, contractors and partners. But high forex fees, compliance issues and slow processing times make international payments a pain.
The good news? There are multiple ways to send EUR from India—each with its own cost, speed and convenience factor. Whether you choose a traditional bank, a fintech or a multi-currency account, understanding the best option for your business is key.
This guide breaks down all the available options, costs and how to ensure smooth and compliant transactions.
Sending EUR payments from India isn’t as simple as sending money abroad. The RBI regulates all outward remittances to prevent fraud. Understanding these regulations is essential to avoid delays or penalties.
The FEMA governs all forex transactions in India. Under FEMA outward remittances should be for a legally permitted purpose and should be processed through authorized banks or fintech platforms approved by the RBI.
For businesses outer remittances fall under the Current Account Transactions Rules meaning companies should provide valid documents such as invoices or contracts to justify the payment.
If you’re an individual sending EUR payments, the Liberalised Remittance Scheme (LRS) applies. Under LRS Indian residents can remit up to USD 250,000 (or its equivalent in EUR) per financial year for:
But business transactions are not allowed under LRS so Indian companies should use different regulatory routes for sending EUR payments.
Businesses sending EUR payments fall under Trade and Business Transactions regulations, which requires compliance with:
To send EUR payments from India businesses should provide a purpose code that explains the reason for the transaction. Some common purpose codes are:
With the right approach, Indian businesses can navigate regulatory requirements and send EUR payments smoothly while minimizing costs.
With multiple options available, it depends on cost, speed and convenience. Here’s a breakdown of the best ways to send EUR from India:
Karbon Forex offers Indian businesses a fast and cost effective way to send EUR payments. While banks charge high forex markups (3-5%), Karbon provides real exchange rates with minimal fees. Transactions are processed quickly, often within 24-48 hours, making it the best option for businesses dealing with European suppliers and service providers.
✅ Lower forex conversion rates than banks
✅ Faster processing with dedicated support
✅ No hidden fees or intermediary charges
Best for: Businesses looking for a low-cost and fast solution to send EUR payments abroad.
Most Indian businesses use SWIFT transfers through HDFC, ICICI and SBI. While widely accepted, they have:
Best for: High value business transactions where traditional banking compliance is required.
Platforms like Wise and Revolut offer better forex rates than banks. However, they have transfer limits and Indian businesses can’t use them for B2B transactions due to RBI restrictions.
Best for: Freelancers and small businesses sending lower value EUR payments.
Indian businesses dealing with European clients can open a multi currency account with Karbon, Airwallex or Payoneer. These accounts allow holding EUR balances, which helps to avoid multiple forex conversions.
Best for: Exporters and global businesses making frequent EUR payments.
If you’re paying European service providers, using PayPal or Stripe can be convenient. However, they charge 3-5% transaction fees and poor exchange rates, making them expensive for large transactions.
Best for: Freelancers and small service-based businesses.
For businesses importing goods from Europe, a Letter of Credit (LC) via Indian banks ensures safe and guaranteed payments. Trade finance options also help delay payments, improve cash flow.
Best for: Importers handling large value EUR transactions.
A Foreign Currency Demand Draft (FCDD) is a bank-issued prepaid demand draft in EUR, which can be sent to the recipient by post or courier. The recipient can then deposit the draft in their European bank account, where it is processed like a cheque.
Best for: Indian businesses or individuals making one-time payments for legal, academic or professional services in Europe.
A Prepaid Forex Card is a reloadable card that can be loaded with EUR before traveling abroad. It works like a debit card, allowing businesses to pay for accommodation, transport and other expenses in Europe without currency conversion at each transaction.
Best for: Businesses sending employees to Europe for corporate trips, conferences or operational expenses.
Some major Indian banks like State Bank of India (SBI), HDFC and ICICI have NOSTRO accounts with European banks. These accounts allow Indian businesses to send EUR payments without relying on SWIFT intermediaries, reducing costs and transfer time.
Choosing the right method helps Indian businesses save money, avoid delays, and ensure compliance when sending EUR payments abroad.
Rates change daily based on global events. Businesses can save on conversion charges by monitoring rates using XE.com or RBI’s reference rates to track INR/EUR. Transfer during low volatility periods like avoiding major economic announcements and you can get better rates. Platforms like Karbon or banks offer forward contracts that allow you to lock in rates for future transfers and reduce uncertainty.
Banks and money transfer services charge hidden fees beyond the rate. Choose low fee platforms like Karbon Forex for transparent pricing with lower markups than banks. Using multi-currency accounts helps businesses receiving frequent EUR payments avoid double conversion losses. Instead of sending multiple small payments, consolidate transactions into fewer, bigger transfers to reduce per transfer fees.
Delays and rejections happen due to compliance issues. Provide complete documents including invoices, purpose codes and updated KYC details for smooth processing. Use the correct RBI approved purpose code like P0102 for import payments to avoid unnecessary scrutiny. Verify beneficiary details including IBAN and SWIFT codes to reduce the risk of delays or fund returns and ensure payments reach the recipient without issues.
By following these tips, you can save costs, avoid delays to make your EUR payments from India more efficient.
Sending EUR from India is complicated with high forex markups, long processing times and complex compliance requirements. Karbon Forex solves all these issues by offering fully compliant solution for Indian businesses. With a simple onboarding process, businesses can start sending EUR without any delay or paperwork hurdles.
Transfers are processed within 24-48 hours, way faster than SWIFT which takes 5 days. Compliance is a big concern for Indian businesses and Karbon ensures every transaction meets RBI guidelines so there are no delays or rejections. Businesses also get dedicated support to navigate documentation requirements so that transactions are smooth and hassle-free.
Karbon Forex is the perfect solution for businesses that need fast, cost-effective and fully compliant EUR payments. Learn more by taking a look at our dashboard! Sign up now.
To secure better EUR exchange rates than traditional banks, compare rates across multiple platforms like Karbon Forex, specialized forex services, and multi-currency accounts. Timing your transfers during periods of low market volatility and setting up rate alerts can help you catch favorable rates.
Yes, you can schedule EUR payments from India through certain platforms. Businesses with regular European suppliers can set up recurring transfers through Karbon Forex or multi-currency business accounts. This automation helps maintain payment consistency and often gets better rates through relationship pricing.
When paying European freelancers in EUR from India, you will need: a valid invoice from the freelancer detailing services provided, service agreement or contract, Form A2 for outward remittance, KYC documents including PAN card and address proof, and correct purpose code (usually S0305 for professional services). Keep these records for at least 7 years to satisfy any RBI or tax authority queries.
Under Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS), resident individuals, including minors, can remit up to EUR 227,000 (approximately USD 250,000 as of Feb 2025) per year (April to March) for permitted current or capital account transactions.
Permitted Usage: LRS covers various purposes including private visits (except Nepal and Bhutan), gifts or donations, employment abroad, emigration, maintenance of close relatives, business trips, medical treatment and studies abroad.
Prior Approval: Remittances above USD 250,000 require prior approval from RBI.
Tax Collected at Source (TCS): As of 15th June 2024, remittances above ₹1,000,000 (approximately EUR 11,500) are subject to TCS.
Documents: PAN is mandatory for all remittances under LRS.
For entities like companies, partnerships, trusts etc., LRS does not apply. Such entities have to comply with specific FEMA guidelines based on their industry. Specific limits should be confirmed with your bank or forex provider as they're periodically updated by the RBI.
To check if a EUR payment platform is RBI approved, check the platform’s website for their AD (Authorized Dealer) license number or FFMC (Full Fledged Money Changer) license details. You can cross check these credentials on RBI’s website under the “List of Authorized Dealers/Money Changers”. Legitimate platforms will clearly display their regulatory compliance and usually partner with Indian banks for settlement.
SEPA (Single Euro Payments Area) transfers are faster and cheaper but only work within Eurozone. SEPA transfers take 1 business day and have lower fees, best for EUR payments within Europe. SWIFT is universal but slower (2-5 days) and more expensive as there are multiple intermediaries. When sending EUR from India, most transfers default to SWIFT, but some platforms (like Karbon Forex) now offer SEPA connectivity for European recipients.
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