A purpose code is a central bank-issued code required for successful cross-border transactions, detailing the transaction's purpose. Countries like India and others have specific lists of these codes to categorize inward and outward remittances. Salt, a neobank, simplifies the process by providing tools to identify the correct purpose code and facilitating quick and affordable cross-border payments.

1. https://salt.pe/
What is a Purpose Code
and why is it required?

2. https://salt.pe/
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?
1
P X X X X

3. https://salt.pe/
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?
2

4. https://salt.pe/
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?
3

5. https://salt.pe/
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?
4
_
_
_
_
_
_
0
_
_
_
P X X X X
P X X X X
P X X X X

6. https://salt.pe/
5
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

7. https://salt.pe/
5
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?