🌐 How to Open a Multi-Currency Bank Account for Indian Startups
In today’s global marketplace, Indian startups are increasingly engaging in cross-border transactions—whether it's receiving investments, paying for global SaaS tools, or servicing international clients. A multi-currency bank account empowers startups to hold, receive, and send funds in various currencies without the hassle of conversions each time.
This article provides a step-by-step guide, along with key considerations and benefits, for Indian startups aiming to open a multi-currency account.
🏦 What is a Multi-Currency Bank Account?
A multi-currency bank account allows a business to hold funds in multiple foreign currencies such as USD, EUR, GBP, JPY, etc., within a single banking relationship. It helps in avoiding constant currency conversions and provides seamless international operations.
✅ Benefits for Indian Startups
💸 Avoid Currency Conversion Losses
Receive and hold foreign payments in the original currency, avoiding forex conversion losses.
🌍 Global Expansion Readiness
Make and receive payments in local currencies of your clients or vendors across the globe.
🔐 Enhanced Credibility
Having an international account improves brand trust among foreign investors and partners.
📊 Simplified Accounting
Easier to manage receivables and payables in multiple currencies for accounting and tax purposes.
📝 Eligibility Criteria for Indian Startups
To open a multi-currency account, the startup must:
Be registered as a Private Limited Company or LLP
Have a valid Import Export Code (IEC) if dealing in physical goods
Be compliant with FEMA and RBI guidelines
Have a clear KYC profile and business justification for such an account
🌐 Where Can You Open a Multi-Currency Account?
1. Indian Banks with Foreign Currency Services
Many leading Indian banks provide EEFC (Exchange Earners’ Foreign Currency) or RFC-D (Resident Foreign Currency – Domestic) accounts.
Examples:
HDFC Bank
ICICI Bank
Axis Bank
State Bank of India (SBI)
2. International Digital Banks & Fintech Platforms
These platforms allow you to open a virtual global account from India:
💼 Wise (formerly TransferWise)
🏢 Payoneer
💳 Airwallex
🌍 Revolut Business (limited access)
📲 Zolve (in partnership with US banks)
⚠️ Note: RBI regulations prohibit Indian residents from directly opening foreign bank accounts without specific approval. Thus, Indian startups must follow FEMA-compliant channels or use India-integrated fintech platforms.
🔍 Step-by-Step Process to Open a Multi-Currency Account
Step 1: 📑 Finalize Business Structure
Ensure your startup is a registered legal entity—preferably a Private Limited Company or LLP.
Step 2: 🧾 Obtain Key Licenses
Get:
PAN Card of the entity
Import Export Code (IEC)
GST registration (if applicable)
Step 3: 🏦 Choose Your Banking Partner
Decide between:
Indian commercial banks for EEFC accounts
RBI-compliant fintech platforms for global accounts
Step 4: 📤 Submit Documentation
You will need:
Certificate of Incorporation
PAN, GST, IEC
Board Resolution (if required)
KYC documents of directors
Address proof
Purpose declaration (for opening account)
Step 5: ✅ Complete KYC & Onboarding
The bank or platform will verify your KYC and approve the account after due diligence.
🧾 RBI & FEMA Compliance
Indian startups must remain compliant with:
Foreign Exchange Management Act (FEMA)
LRS (Liberalised Remittance Scheme) for outward remittances
RBI master directions on export/import and current account transactions
Also, foreign currency earnings should be repatriated within stipulated timelines (usually 9 months) if held abroad.
⚠️ Common Mistakes to Avoid
🚫 Opening unauthorized accounts abroad directly
🚫 Using personal accounts for business forex
🚫 Ignoring RBI reporting and compliance
🚫 Not reconciling multi-currency receivables properly in books
✅ Pro Tips
🔹 Consider opening an EEFC account if you regularly earn in foreign currencies.
🔹 Use Wise or Payoneer to invoice international clients and withdraw into your Indian business account in INR.
🔹 Maintain separate ledgers for each currency in your accounting system.
🔹 Consult a Chartered Accountant (CA) for FEMA and income tax compliance.
🏁 Conclusion
With the rise in international transactions and global clientele, Indian startups must take proactive steps to manage currency flows efficiently. A multi-currency bank account is no longer a luxury but a necessity for startups aiming to scale globally. While several options exist, choosing the right channel—regulated and compliant—is key to ensure smooth operations without facing legal hurdles.
Whether you opt for a traditional EEFC account or a digital global account through a fintech platform, the goal remains the same: to empower your startup to transact globally with confidence and compliance.