A purpose code is a code issued by a country's central bank that is required for successful cross-border transactions. The code is assigned to each transaction involving foreign currency and states the purpose for which the transaction is being made. Purpose codes from both the sender and receiver countries may be required when making a cross-border payment in order to meet the regulatory requirements of the banks issuing the codes. Read More about Purpose code here- https://www.salt.pe/blog/purpose-code-for-international-money-transfer To Find the right purpose code for your International transaction- https://www.salt.pe/purpose-code Watch this video- https://www.youtube.com/watch?v=tytfL6lk1H0 Salt is a fintech startup based out of Bangalore, helping businesses thrive in the international market with effortless international payments and the compliances. Read more about Salt here: https://www.salt.pe

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What is a Purpose Code
and why is it required?

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A purpose code is a code issued by a country's central bank that is required
for successful cross-border transactions.
The code is assigned to each transaction involving foreign currency and
states the purpose for which the transaction is being made.
What is a purpose code?
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P X X X X

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A purpose code is a code issued by a country's central bank that is
required for successful cross-border transactions. In India, RBI has issued
a list of purpose codes to be used during any kind of foreign transaction.
These are classified into two categories:
- Payments received by Indians or for inward remittances in foreign currency
- Payments sent by Indians or for outward remittance in foreign currency
Who issues these codes?
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With the increasing amount of cross-border transactions, it is important
for financial institutions to keep track of the inward and outward remittances.
These codes specify the nature of the transaction as well as the specific
reason for the transfer.Along with the correct purpose code, you will also
need a Foreign Inward Remittance Certificate (FIRC) issued by RBI to
receive cross-border payments.
Why is a purpose code
needed?
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India is not the only country mandating purpose codes to execute
cross-border transactions successfully.
Countries like Bahrain, China, Malaysia, and the United Arab Emirates
have issued purpose codes for regular cross-border transactions.
Which are the countries that
have mandated purpose codes?
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P X X X X
P X X X X
P X X X X

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Finding the correct purpose code can
be tough, but worry not we’ve got you back!
SALT has created a tool that helps you find the exact purpose code
without scouring through the endless list. Thus, making your transactions
easier and compliance-friendly!
https://www.salt.pe/purpose-code

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SALT is a neobank that is making cross-border payments easy for businesses.
With SALT, you can transfer money from abroad within 24 hours at a charge
of just 1.75% of the total transaction amount.
Whether you are a startup or an SME, SALT requires no minimum
transaction amount to use its services. There are no hidden charges,
no annual subscription fees, and no markup fees for using SALT.
How Does SALT Help in Cross Border
Payments?