Banks normally ask for purpose code (also known as purpose of remittance) for all money transfers from overseas to a resident account if the amount exceeds Rs.1,00,000 (or its equivalent in foreign exchange). It is mandatory for the bank to submit these details to RBI on a regular basis.
The receiver can keep 50% of the amount (70% for exporters) in Exchange Earners Foreign Currency account (EEFC) as foreign currency itself or can convert to Indian rupees and keep it in his Resident account.
Even, most of the Adsense users were asked to submit these details as the transactions were mostly happening from Google Citibank, CA account in USD, and the most appropriate purpose code is P1007 - Advertising, trade fair service. You can find the complete list of purpose codes in the below table.
For inward remittance due to sale of Employee Stock Purchase Program (ESPP) and Restricted Stock Units (RSU), the most matching purpose code is P0021 - Receipts on account of sale of share under Employee stock option.
Updated list of Purpose codes for Inward Remittance
| Purpose Code | Description (PURCHASE TRANSACTIONS) | Status |
| P0017 | Receipts on account of Sale of non-produced non-financial assets (Sale of intangible assets like patents, copyrights, trademarks etc., land acquired by government, use of natural resources) – Government | Modified |
| P0019 | Receipts on account of Sale of non-produced non-financial assets (Sale of intangible assets like patents, copyrights, trademarks etc., use of natural resources) – Non-Government | New |
| P0028 | Capital transfer receipts (Guarantee payments, Investment Grant given by the government/international organisation, exceptionally large Non-life insurance claims including claims arising out of natural calamity) - Government | New |
| P0029 | Capital transfer receipts ( Guarantee payments, Investment Grant given by the Non-government, exceptionally large Non-life insurance claims including claims arising out of natural calamity) – Non-Government | New |
| P0099 | Other capital receipts not included elsewhere | New |
| P0003 | Repatriation of Indian Direct investment abroad (by branches & wholly owned subsidiaries and associates) in equity shares | Already Existing |
| P0004 | Repatriation Indian Direct investment abroad (by branches & wholly owned subsidiaries and associates) in debt instruments | Already Existing |
| P0005 | Repatriation of Indian investment abroad in real estate | Already Existing |
| P0006 | Foreign Direct Investment made by overseas Investors in India in equity shares | Already Existing |
| P0007 | Foreign Direct Investment made by overseas Investors in India in debt instruments. | Already Existing |
| P0008 | Foreign Direct Investment made by overseas Investors in India in real estate | Already Existing |
| P0001 | Repatriation of Indian Portfolio investment abroad in equity capital (shares) | Already Existing |
| P0002 | Repatriation of Indian Portfolio investment abroad in debt instruments. | Already Existing |
| P0009 | Foreign Portfolio Investment made by overseas Investors in India in equity shares | Already Existing |
| P0010 | Foreign Portfolio Investment made by overseas Investors in India in debt Instruments. | Already Existing |
| P0011 | Repayment of loans extended to Non-Residents | Already Existing |
| P0012 | Long & medium term loans, with original maturity of above one year, from Non-Residents to India (External Commercial Borrowings) | Already Existing |
| P0013 | Short term loans with original maturity upto one year from Non-Residents to India (Short-term Trade Credit) | Already Existing |
| P0014 | Receipts o/a Non-Resident deposits (FCNR(B)/NR(E)RA, etc.) {ADs should report these even if funds are not “swapped” into Rupees} | Already Existing |
| P0015 | Loans & overdrafts taken by ADs on their own account. (Any amount of loan credited to the NOSTRO account which may not be swapped into Rupees should also be reported) | Already Existing |
| P0016 | Purchase of a foreign currency against another currency. | Already Existing |
| P0020 | Receipts on account of margin payments, premium payment and settlement amount etc. under Financial derivative transactions | New |
| P0021 | Receipts on account of sale of share under Employee stock option | New |
| P0022 | Receipts on account of other investment in ADRs/GDRs | New |
| P0024 | External Assistance received by India e.g. Multilateral and bilateral loans received by Govt. of India under agreements with other govt. / international institutions. | New |
| P0025 | Repayments received on account of External Assistance extended by India | New |
| P0101 | Value of export bills negotiated / purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.) – Other than Nepal and Bhutan | Modified |
| P0102 | Realisation of export bills (in respect of goods) sent on collection (full invoice value) – Other than Nepal and Bhutan | Modified |
| P0103 | Advance receipts against export contracts, which will be covered later by GR/PP/SOFTEX/SDF – other than Nepal and Bhutan | Modified |
| P0104 | Receipts against export of goods not covered by the GR /PP /SOFTEX /EC copy of shipping bill etc. (under Intermediary/transit trade, i.e., third country export passing through India | Modified |
| P0105 | Export bills (in respect of goods) sent on collection – other than Nepal and Bhutan | Modified |
| P0107 | Realisation of NPD export bills (full value of bill to be reported) – other than Nepal and Bhutan | Modified |
| P0108 | Goods sold under merchanting / Receipt against export leg of merchanting trade* | New |
| P0109 | Export realisation on account of exports to Nepal and Bhutan, if any | New |
| P0201 | Receipts of surplus freight/passenger fare by Indian shipping companies operating abroad | Already Existing |
| P0202 | Receipts on account of operating expenses of Foreign shipping companies operating in India | Already Existing |
| P0205 | Receipts on account of operational leasing (with crew) – Shipping companies | Already Existing |
| P0207 | Receipts of surplus freight/passenger fare by Indian Airlines companies operating abroad. | Already Existing |
| P0208 | Receipt on account of operating expenses of Foreign Airlines companies operating in India | Already Existing |
| P0211 | Receipt on account of operational leasing (with crew) – Airlines companies | Already Existing |
| P0214 | Receipts on account of other transportation services (stevedoring, demurrage, port handling charges etc).(Shipping Companies) | New |
| P0215 | Receipts on account of other transportation services (stevedoring, demurrage, port handling charges etc).( Airlines companies) | New |
| P0216 | Receipts of freight fare -Shipping companies operating abroad | New |
| P0217 | Receipts of passenger fare by Indian Shipping companies operating abroad | New |
| P0218 | Other receipts by Shipping companies | New |
| P0219 | Receipts of freight fare by Indian Airlines companies operating abroad | New |
| P0220 | Receipts of passenger fare –Airlines | New |
| P0221 | Other receipts by Airlines companies | New |
| P0222 | Receipts on account of freights under other modes of transport (Internal Waterways, Roadways, Railways, Pipeline transports and Others) | New |
| P0223 | Receipts on account of passenger fare under other modes of transport (Internal Waterways, Roadways, Railways, Pipeline transports and Others) | New |
| P0224 | Postal & Courier services by Air | New |
| P0225 | Postal & Courier services by Sea | New |
| P0226 | Postal & Courier services by others | New |
| P0301 | Purchases towards travel (Includes purchases of foreign TCs, currency notes etc over the counter, by hotels, Emporiums, institutions etc. as well as amount received by TT/SWIFT transfers or debit to Non-Resident account). | Already Existing |
| P0302 | Business travel | New |
| P0304 | Travel for medical treatment including TCs purchased by hospitals | New |
| P0305 | Travel for education including TCs purchased by educational institutions | New |
| P0306 | Other travel receipts | New |
| P0308 | Foreign Currencies/TCs surrendered by returning Indian tourists. | Already Existing |
| P0501 | Receipts on account of services relating to cost of construction of projects in India | Already Existing |
| P0502 | Receipts on account of construction works carried out abroad by Indian Companies | New |
| P0601 | Life Insurance premium except term insurance | Already Existing |
| P0602 | Freight insurance – relating to import & export of goods | Already Existing |
| P0603 | Other general insurance premium including reinsurance premium; and term life insurance premium | Already Existing |
| P0605 | Auxiliary services including commission on insurance | Already Existing |
| P0607 | Insurance claim Settlement of non-life insurance; and life insurance (only term insurance) | New |
| P0608 | Life insurance claim settlements (excluding term insurance) received by residents in India | New |
| P0609 | Standardised guarantee services | New |
| P0610 | Premium for pension funds | New |
| P0611 | Periodic pension entitlements e.g. monthly quarterly or yearly payments of pension amounts by Indian Pension Fund Companies. | New |
| P0612 | Invoking of standardised guarantees | New |
| P0701 | Financial intermediation except investment banking - Bank charges, collection charges, LC charges, etc. | Already Existing |
| P0702 | Investment banking - brokerage, under writing commission etc. | Already Existing |
| P0703 | Auxiliary services - charges on operation & regulatory fees, custodial services, depository services etc. | Already Existing |
| P0801 | Hardware consultancy/implementation | Already Existing |
| P0802 | Software consultancy/implementation (other than those covered in SOFTEX form) | Already Existing |
| P0803 | Data base, data processing charges | Already Existing |
| P0804 | Repair and maintenance of computer and software | Already Existing |
| P0805 | News agency services | Already Existing |
| P0806 | Other information services- Subscription to newspapers, periodicals, etc. | Already Existing |
| P0807 | Off-site Software Exports | Already Existing |
| P0808 | Telecommunication services including electronic mail services and voice mail services | New |
| P0809 | Satellite services including space shuttle and rockets, etc. | New |
| P0901 | Franchises services | Already Existing |
| P0902 | Receipts for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films), patents, copyrights, trademarks, industrial processes, franchises etc. | Already Existing |
| P1002 | Trade related services - commission on exports / imports | Already Existing |
| P1003 | Operational leasing services (other than financial leasing) without operating crew, including charter hire- Airlines companies | Modified |
| P1004 | Legal services | Already Existing |
| P1005 | Accounting, auditing, book keeping services | Already Existing |
| P1006 | Business and management consultancy and public relations services | Already Existing |
| P1007 | Advertising, trade fair service | Already Existing |
| P1008 | Research & Development services | Already Existing |
| P1009 | Architectural services | Already Existing |
| P1010 | Agricultural services like protection against insects & disease, increasing of harvest yields, forestry services. | Modified |
| P1011 | Inward remittance for maintenance of offices in India | Already Existing |
| P1013 | Environmental Services | New |
| P1014 | Engineering Services | New |
| P1015 | Tax consulting services | New |
| P1016 | Market research and public opinion polling service | New |
| P1017 | Publishing and printing services | New |
| P1018 | Mining services like on-site processing services analysis of ores etc. | New |
| P1019 | Commission agent services | Modified |
| P1020 | Wholesale and retailing trade services. | New |
| P1021 | Operational leasing services (other than financial leasing) without operating crew, including charter hire- Shipping companies | New |
| P1022 | Other Technical Services including scientific/space services. | New |
| P1099 | Other services not included elsewhere | New |
| P1101 | Audio-visual and related services like Motion picture and video tape production, distribution and projection services. | Already Existing |
| P1103 | Radio and television production, distribution and transmission services | New |
| P1104 | Entertainment services | New |
| P1105 | Museums, library and archival services | New |
| P1106 | Recreation and sporting activity services | New |
| P1107 | Educational services (e.g. fees received for correspondence courses offered to non-resident by Indian institutions) | New |
| P1108 | Health Service (Receipts on account of services provided by Indian hospitals, doctors, nurses, paramedical and similar services etc. rendered remotely or on-site) | New |
| P1109 | Other Personal, Cultural & Recreational services | New |
| P1201 | Maintenance of foreign embassies in India | Already Existing |
| P1203 | Maintenance of international institutions such as offices of IMF mission, World Bank, UNICEF etc. in India. | Already Existing |
| P1301 | Inward remittance from Indian non-residents towards family maintenance and savings | Already Existing |
| P1302 | Personal gifts and donations | Already Existing |
| P1303 | Donations to religious and charitable institutions in India | Already Existing |
| P1304 | Grants and donations to governments and charitable institutions established by the governments | Already Existing |
| P1306 | Receipts / Refund of taxes | Already Existing |
| P1307 | Receipts on account of migrant transfers including Personal Effects | New |
| P1401 | Compensation of employees | Already Existing |
| P1403 | Inward remittance towards interest on loans extended to non-residents (ST/MT/LT loans) | Already Existing |
| P1405 | Inward remittance towards interest receipts of ADs on their own account (on investments.) | Already Existing |
| P1408 | Inward remittance of profit by branches of Indian FDI Enterprises (including bank branches) operating abroad. | New |
| P1409 | Inward remittance of dividends (on equity and investment fund shares) by Indian FDI Enterprises, other than branches, operating abroad | New |
| P1410 | Inward remittance on account of interest payment by Indian FDI enterprises operating abroad to their Parent company in India. | New |
| P1411 | Inward remittance of interest income on account of Portfolio Investment made abroad by India | New |
| P1412 | Inward remittance of dividends on account of Portfolio Investment made abroad by India on equity and investment fund shares | New |
| P1499 | Other income receipts | New |
| P1501 | Refunds / rebates on account of imports | Already Existing |
| P1502 | Reversal of wrong entries, refunds of amount remitted for non-imports | Already Existing |
| P1503 | Remittances (receipts) by residents under international bidding process. | Already Existing |
| P1505 | Deemed Exports ( exports between SEZ, EPZs and Domestic Tariff Areas) | New |
| P1601 | Receipts on account of maintenance and repair services rendered for Vessels, Ships, Boats, Warships, etc. | New |
| P1602 | Receipts of maintenance and repair services rendered for aircrafts, Space shuttles, Rockets, military aircrafts, etc. | New |
| P1701 | Receipts on account of processing of goods | New |
| P0091 | Purchase from RBI | Already Existing |
| P0092 | Purchase from Other AD's | Already Existing |
| P0093 | Purchase from Overseas Bank | Already Existing |
| P0095 | Aggregate Purchases | Already Existing |
| P0100 | Pur from Public against exports Total | Already Existing |
| P0144 | Purchases from Public against third country exports (Currency wisw Totals) | Already Existing |
| P1590 | Receipts below $ 10000 say (Rs. 500000) (Currency Wise Totals) | Already Existing |
| P1591 | Non Exports equivalent & above US$ 10,000 (say Rs. 5,00,000) | Already Existing |
| P2088 | Opening Balance (Debit Balance in Mirror/Debit Balance in Vostro) | Already Existing |
| P2199 | Closing Balance (Debit Balance in Mirror/Debit Balance in Vostro) | Already Existing |
| P000 | DUMMY PUR PURPOSE CODE | Removed |
| P0018 | other capital receipts (not included else where),commodity hedging, swap | Removed |
| P0094 | debit from the vostro a/c of overseas bank or correspondents (Country-wise Totals) | Removed |
| P0106 | conversion of overdue export bills from NPD to collection mode | Removed |
| P0213 | receipts towards other transportation services (stevedoring demurrage port handling charges etc | Removed |
| P0401 | receipts on account of settlement of claims for postal services | Removed |
| P0402 | receipts on account of settlement of claims for courier services | Removed |
| P0403 | receipts on account of settlement of claims for telecommunication services | Removed |
| P0404 | Purchases on account of settlement of satellite services | Removed |
| P0604 | receipts on account of reinsurance premium | Removed |
| P0606 | receipts on account of settlement of claims | Removed |
| P1001 | merchanting services - net receipt (from sale & purchase of goods without crossing the border) | Removed |
| P1102 | receipts towards personal cultural services such as those related to museums libraries archives and sporting activities also includes fees education | Removed |
| P1404 | inwards remittance of interest on debt securities debentures/bonds/FRNs etc | Removed |
| P1406 | remittance towards repatriation of profits to india | Removed |
| P1407 | remittance towards receipt of dividends by Indians | Removed |