How to Deposit a US Dollar Cheque in an Indian Bank Account (2026 Guide)

Received a cheque in US dollars from a client, an affiliate programme or a relative abroad? You can’t just drop it in the ATM cheque box like a rupee cheque. Here’s how to deposit a US dollar cheque, or any foreign currency cheque, in your Indian bank account in 2026: the form you need, the purpose code, how long it takes, the charges, and faster alternatives to cheques.

Quick answer: Take the cheque to your bank branch counter (not the dropbox) with a signed foreign currency cheque deposit slip, often called an “Indemnity Letter cum Deposit Slip”. Mention the purpose code for the income. The bank sends it for collection and credits rupees to your account, usually in 1 to 6 weeks, after deducting charges.

How to deposit a US dollar cheque in India (step by step)

1. Check the cheque. Make sure it’s payable to your exact name as in your bank account, signed, dated within the last six months, and in a currency your bank accepts.
2. Get the deposit form. Download your bank’s foreign currency cheque deposit slip from its website or ask at the branch. ICICI Bank, for example, calls it the “Indemnity Letter cum Deposit Slip”.
3. Fill in the details: cheque number, amount, currency, drawee bank, your account number, and the purpose of the remittance (see below).
4. Endorse the back of the cheque with your signature and account number if the bank asks you to.
5. Submit it at the branch counter and get an acknowledgement. Banks like ICICI specifically warn against putting foreign cheques in dropboxes.
6. Keep copies of the cheque (front and back), the form and the receipt until the money arrives.

Choose the right purpose code

RBI requires every inward foreign remittance to carry a purpose code that says why you received the money. It matters for your tax records and for getting a foreign inward remittance certificate (FIRC/FIRA) as proof of export income.

Common choices:

• Bloggers and publishers earning from advertising or affiliate programmes often use P1007 (advertising-related services).
• Software and IT freelancers usually use P0802 (software consultancy and implementation).
• Gifts from family abroad use a personal transfer code instead.

Codes are revised from time to time, so confirm the right one with your bank or chartered accountant.

How long does a foreign cheque take to clear?

Banks collect foreign cheques in one of two ways:

• Cash letter (faster): for smaller cheques in major currencies, the bank credits you once its overseas correspondent clears the cheque. ICICI quotes about 8 working days for small amounts and about 15 working days for larger ones.
• Direct collection (slower): the cheque is couriered to the issuing bank abroad, which can take 30 to 40 working days.

Most banks accept major currencies such as USD, GBP, EUR, CAD, AUD, SGD, AED, CHF, JPY and NZD, and some set a small minimum amount (for example, 10 USD).

What does it cost?

Expect three costs:

• The bank’s collection fee: usually a small percentage (around 0.125% to 0.5% at ICICI for resident customers) with a minimum, plus GST.
• Courier and correspondent bank charges, especially for direct collection.
• The exchange rate: you get the bank’s buying rate on the day the money is converted, which is a little below the rate you see on Google.

On small cheques, these fees can take a big bite. A $20 cheque may not be worth depositing at all.

Faster alternatives to foreign cheques

Cheques are slow and increasingly rare. If you regularly receive money from abroad, ask clients and programmes to pay you electronically:

• Direct bank transfer (SWIFT/wire): lands in your Indian account in 1 to 3 days. Share your bank’s SWIFT code and account details.
• Freelancer payment services like Wise, Payoneer, Skydo and Razorpay’s international payments give you local USD account details and convert to rupees, often at lower cost than a bank. Most provide FIRA documents for tax.
• PayPal: widely accepted, but its currency conversion margin is high.
• Google AdSense already pays Indian publishers directly into their bank account by wire, so there’s no cheque to deposit. See our AdSense Auto Ads guide if you’re starting out.

Frequently asked questions

Can I deposit a US dollar cheque in a savings account?

Yes. A regular resident savings account can receive the rupee equivalent of a foreign cheque. You don’t need a special foreign currency account.

Can I deposit a foreign cheque in the ATM or cheque dropbox?

No. Foreign currency cheques must be handed over at the branch counter with the deposit form, so the bank can process them separately.

Is income from a foreign cheque taxable in India?

Yes. Freelance, advertising and affiliate income from abroad is taxable in India and should be shown in your income tax return. Keep the bank’s credit advice or FIRA as proof.

This guide is for general information only. Bank rules and charges change, so check with your bank before depositing.