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Posted on Oct 17, 2025
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When you receive a payment from an international client, your bank or your payment provider asks for a “purpose code”. So if you have ever wondered about what purpose code is, or why it is needed, or maybe if you are in the consultancy business and wondering which purpose code applies to your business, then this guide is for you.
Let’s break down the term Purpose Code S1006 in this blog and understand its various impacts on international payments.
What is a purpose code?
A purpose code is a classification defined by the Reserve Bank of India (RBI). It explains why foreign money is flowing into India or out of India.
Every international transaction, be it because of exports, consultancy, or software, must be attached with a purpose code.
Banks, payment gateways, and other fintech payment platforms use purpose codes when doing any international transaction. This is because they have to report to the RBI under the FEMA regulations about the flow of money in India.
Read more: What are RBI Purpose Codes for Inward Remittance?
In simple words, purpose code helps in:
Track the nature of goods and services exported.
Ensure compliance with Indian foreign exchange rules.
Prevent misuse of international remittance channels.
Why is purpose code required in India?
The RBI makes purpose codes mandatory for all cross-border payments to maintain:
Transparency – each transaction is clearly linked to the nature of the service provided.
Compliance – it ensures Indian exporters and service providers follow FEMA guidelines.
Accurate reporting – helps classify whether a payment is for goods, services, donations, royalties, or investments.
Choosing the wrong purpose code can delay payments or cause mismatches in your Foreign Inward Remittance Certificate (FIRC) — which many freelancers and agencies use as proof of export income.
What is Purpose Code S1006?
S1006 – Business and management consultancy and public relations services.
Purpose Code S1006 is defined by the Reserve Bank of India (RBI) for “Business and management consultancy and public relations services.”
It’s used when Indian freelancers, consultants, or agencies receive international payments for advisory, management consulting, business planning, or PR-related services. Using the correct purpose code ensures your payment is reported accurately under FEMA regulations and helps you receive funds without delays.
So, if you’re offering consulting or advisory services — not technical or IT-related — to overseas clients, you’ll most likely fall under S1006.
It’s commonly used by:
Business consultants
Management advisors
PR and communication firms
Brand consultants or market entry specialists
Who Should Use Purpose Code S1006?
You should use S1006 if your work involves providing business or management advice, market strategy, or public relations services to clients based abroad.
Here are a few examples:
Independent consultants helping startups with business planning or investor strategy.
PR agencies managing brand communications or media outreach for global clients.
Advisory firms assisting foreign companies in entering the Indian market.
Marketing strategists providing growth or communication consulting.
💡 Tip: If your services are more technical or IT-based (like software development), you might need to use a different code, such as RBI purpose code P0802 is used for software consultancy or P1007 related to Ads, Research & Trade Fairs.
Examples of International Transactions Under S1006
Scenario | Service Provided | Applicable Code |
A Delhi-based consultant advising a UK startup on fundraising and strategy | Business consultancy | S1006 |
A PR agency in Mumbai managing global press campaigns for a US client | Public relations service | S1006 |
A freelance growth strategist preparing a marketing plan for a Singapore brand | Business consultancy | S1006 |
An Indian firm preparing an international business feasibility report | Management consulting | S1006 |
How to Use S1006 When Receiving International Payments?
When receiving International Payments Through Banks
When you receive a foreign transfer via your bank, you’ll usually need to declare the purpose code while filling out the FIRC or inward remittance details.
Steps:
Select “Business and management consultancy / PR services” as your service category.
Make sure your invoice description matches the same nature of service.
The bank records the purpose code with RBI while crediting your account.
When receiving International Payments through Platforms like Infinity
When using platforms like Infinity, you don’t need to manually deal with complex RBI classifications.
Infinity automatically maps your incoming payments with the correct purpose code (S1006) based on your business type — ensuring full compliance and faster settlements.
This means no more delays or confusion when you receive international payments for consulting or PR projects.
Common Mistakes to Avoid While Using Purpose Code S1006
Many consultants and freelancers make small errors that lead to big delays later. Here’s what to watch for:
Selecting the wrong purpose code — e.g., using S1005 (technical consulting) when your work is business advisory.
Mismatched invoices — your invoice should clearly describe the service (e.g., “Management consulting services” or “PR campaign execution”).
Ignoring purpose code selection — if left blank, your bank may delay the credit until you confirm it.
Pro tip: Always align your invoice wording with the service category covered by S1006. It makes FIRC processing smoother.
Related Purpose Codes
Code | Description |
S1005 | Business and management consultancy and public relations (technical or IT-related) |
S1006 | Business and management consultancy and PR (non-technical services) |
S1010 | Other IT services |
P0802 | Royalty on software |
FAQs on Purpose Code S1006
Q1. Can freelancers use S1006?
Yes. If you’re offering consultancy, marketing strategy, or PR services to overseas clients, this is the right code.
Q2. What if I choose the wrong purpose code?
The payment might get delayed or incorrectly classified in RBI records, which can cause compliance issues.
Q3. Do I need to mention the purpose code on my invoice?
Not mandatory, but it’s good practice to align your invoice description with the purpose code you select.
Q4. Can agencies receiving retainers or recurring payments use S1006?
Yes, as long as the retainers are for consultancy or PR-related services.
Why Choose Infinity for Global Payments?
Infinity makes receiving international payments simple, fast, and fully compliant with RBI regulations.
Whether you offer consultancy, PR, or creative services, Infinity automatically assigns the correct purpose code (like S1006), generates FIRA, and ensures instant settlement to your Indian account.
With trusted AD-1 level bank partners, Infinity gives you the reliability of cross-border payments with the ease of a modern fintech platform — so you can focus on growing your business, not decoding compliance.
Receive international payments effortlessly, transparently, and securely with Infinity.
