What is Purpose Code?
A purpose code is a short code that RBI uses to classify why money is moving across the border. Every inward remittance is tagged with one, and the code usually appears on your FIRA or FIRC. For service exporters, the codes in the P08 and P10 series are the ones you will meet most, for example P0802 (software consultancy and implementation), P0807 (off-site software exports), P1006 (business and management consultancy and PR), P1007 (advertising, trade fair and market research) and P1009 (architectural, engineering and other technical services).
Why it matters for exporters
The purpose code is how your bank and RBI know that a credit is an export receipt and what kind of service it pays for. A mismatch, such as a consulting fee coded as a family remittance, can complicate matching against your EDF, eBRC generation and GST refunds that rely on proof of export. Some banks ask you to confirm the code when the money arrives; others assign it and you see it later on the advice.
Check the code on every credit and ask for a correction quickly if it is wrong. Our purpose code finder suggests the likely code for your service, and the purpose code correction letter helps you fix a wrong one. Always confirm the final code with your bank.
Example
Delta Research LLP receives ₹7,20,000 from a US client for a market study. The bank's advice shows P1006. Delta's work is market research, which sits under P1007. It writes to the branch with the invoice and contract, and the bank updates the code before matching the payment to the EDF.
Common confusion
A purpose code is not a SAC code. The SAC code classifies your service for GST and appears on your invoice and in EDF Part 2B; the purpose code classifies the remittance for RBI. See P0802 vs P0807.