If foreign clients pay you through Razorpay's international payments, the money still ends up in your Indian bank account, and that bank is normally your AD bank for the EDF. Your monthly EDF lists the invoices you raised to foreign clients, exactly as it would for a direct wire; what changes is the evidence trail — the payout comes through the gateway's settlement rather than as a SWIFT transfer from the client, so you'll rely on the gateway's reports alongside your bank's advice to match invoices. For how Razorpay itself handles international settlements and documents, check Razorpay's current India help pages, because platform policies change.
Key takeaways
- The AD bank is the Indian bank where your settlement lands, not the payment gateway.
- One EDF per month lists every invoice raised to foreign clients that month, however they paid.
- Settlements are often batched and net of fees, so you'll need gateway reports to tie payouts to invoices.
- Decide with your bank and CA how gateway fees affect the NRV you declare.
- Ask what payment advice or remittance documentation is available for international collections — from the gateway and from your bank.
How the money moves
With a direct SWIFT wire, the client's bank sends money to your bank and your bank issues a FIRA naming the client. With a payment gateway, the flow is different:
| Stage | Direct wire | Through a payment gateway |
|---|---|---|
| Client pays | From their bank account | By card, payment link or other method the gateway supports |
| Who collects | Your bank, via correspondent banks | The gateway and its banking partners |
| What reaches your account | One credit per payment, from the client | Settlements, often batched across many payments |
| Fees | Bank charges along the chain | Gateway fees and currency conversion, usually deducted before settlement |
| Your evidence | FIRA/FIRC naming the client | Gateway settlement report plus bank credit advice |
The exact mechanics for your account — currencies supported, settlement timing, what documents are issued — are Razorpay's to describe. Read their current India help pages and your merchant agreement.
Who is your AD bank?
Your AD bank for the EDF is the Authorised Dealer Category-I bank where the export proceeds are credited — the bank holding the account the gateway settles into. It enters your EDF into EDPMS and matches payments against invoices.
If your gateway settles into one bank and your direct wires go to another, file each bank's invoices with that bank, and ask both how they want it handled. Our article on using multiple banks for exports covers the split.
Documentation: what to ask for
Matching gateway money to invoices is the main job. You need two things for every international payment:
- Proof that the money came from abroad for your invoice — usually the gateway's transaction record showing the payer, amount, currency and your invoice reference.
- Proof it reached your Indian account — the bank's credit advice or FIRA for the settlement.
Ask Razorpay what remittance or payment advice it provides for international collections and in what format. Then ask your bank how it wants gateway settlements evidenced for EDPMS. Some banks may treat the gateway's documents plus their own credit advice as sufficient; others may want more. Don't assume — ask.
A worked example: Quillmark Learning
Quillmark Learning Pvt Ltd, a fictional Indore company, sells live coaching packages to professionals in the US, UK and UAE. Clients pay through a payment link after receiving an invoice. In October 2026 it raised eight invoices to foreign clients:
| Invoice range | Clients | Currency | Gross amount |
|---|---|---|---|
| QL/E/26-27/061–064 | 4 US clients | USD | 4 × 450 = USD 1,800 |
| QL/E/26-27/065–066 | 2 UK clients | GBP | 2 × 380 = GBP 760 |
| QL/E/26-27/067–068 | 2 UAE clients | USD | 2 × 450 = USD 900 |
The gateway settled the money in three batches during October and November, in rupees, after deducting fees and converting currency. Quillmark's EDF for October:
- Part 2B: eight rows, one per invoice, each with the client's name, country, invoice number, date, currency and gross invoice amount.
- NRV column: Quillmark's CA and bank agreed it would show the invoice amount, with gateway fees treated as an expense, and note "Collected via payment gateway" in remarks. Your bank may prefer a different treatment.
- Field 1.22 total: USD 2,700 × 84 + GBP 760 × 107 = ₹2,26,800 + ₹81,320 = ₹3,08,120.
It filed by 30 November 2026, attached a summary from the gateway's settlement report mapping each invoice to a settlement batch, and later included all eight invoices — each well under ₹10 lakh — in a periodic realisation declaration.
Fees, conversion and NRV
Gateway fees and conversion spreads mean the rupees you receive won't equal the invoice value at the market rate. Two questions to settle once:
| Question | Who decides | Why it matters |
|---|---|---|
| Should NRV in Part 2B be the gross invoice or net of known fees? | Your bank, with your CA | NRV is what you declare will be realised |
| How do you explain the difference at realisation? | You, with gateway reports | Lets the bank close the entry cleanly |
Our guide to net realisable value in the EDF explains the concept. Whatever you choose, be consistent from month to month.
GST points
If you're exporting services under LUT, the invoice should carry "Supply meant for export under LUT without payment of IGST". One of the GST export conditions is that payment is received in convertible foreign exchange (or rupees where RBI permits). If your settlement arrives in rupees after conversion by the gateway's partners, ask your CA how your evidence shows the foreign-exchange receipt. The EDF itself doesn't change your GST position.
Our export invoice generator lets you add the payment link and LUT wording on one invoice.
This is general information, not legal or tax advice.
Frequently asked questions
Is Razorpay my AD bank for the EDF?
No. A payment gateway isn't your AD bank. Your AD bank is the Indian bank where the export proceeds are credited — the bank account the gateway settles into. File the EDF with that bank.
Do I list each card payment or each settlement on the EDF?
List each invoice you raised to a foreign client, one row per invoice in Part 2B. Settlements are how the money arrived; use the gateway's settlement reports to show which invoices each settlement covers.
What document proves realisation for gateway payments?
Typically a combination of the gateway's transaction or settlement records and your bank's credit advice. Ask Razorpay what payment advice it provides for international collections and ask your bank what it needs for EDPMS.
Should I deduct gateway fees from the invoice value on the EDF?
Agree this with your bank and CA. Some exporters show the gross invoice amount and treat fees as an expense; others reflect known deductions in NRV. Be consistent and keep gateway reports that explain the difference.
Does the ₹10 lakh declaration work for gateway payments?
For invoices up to ₹10 lakh, the bank may close EDPMS entries on your declaration that the money has been realised, whatever channel it came through. Keep gateway and bank records to back it up.
Bottom line
A payment gateway changes the paperwork, not the rule: list every foreign invoice on your monthly EDF and use settlement reports to prove what arrived. Prepare the form in our free EDF form generator and close small invoices with the ₹10 lakh realisation declaration.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.