Virtual Bank Accounts: The Complete Guide to Meaning, Types & How They Work (2026)

A global virtual bank account gives your business a local bank account number in the US (ACH routing), UK (sort code), or Europe (IBAN) without opening a physical account in that country. Your international clients pay you like a local transfer. Funds convert and settle into your Indian bank account within 1-2 days, saving 50-75% on fees vs traditional SWIFT wires.

What Is a Global Virtual Bank Account?

A global virtual bank account is a fully digital bank account in a foreign currency (USD, EUR, GBP) provided by a fintech or digital bank that lets you receive international payments as if you had a local bank account in that country. The virtual account doesn't replace your bank. It sits on top of your existing Indian bank account as a receiving layer for international payments.

How Global Virtual Accounts Work — Step-by-Step

Scenario: Indian SaaS company receiving $5,000 from a US client.

Step 1: You sign up with a RBI licensed cross-border payment provider like EximPe.

Step 2: EximPe issues you a local US bank account with ACH routing number and account number in your company/ personal name.

Step 3: You share these "US bank details" on your invoice to your American client.

Step 4: Client pays via ACH transfer (like paying any local US vendor). No SWIFT. No intermediary banks required.

Step 5: Funds hit your virtual account >> provider converts USD to INR at live mid-market rate >> INR settles in your Indian bank account within 1-2 business days.

Step 6: EximPe auto-generates FIRA (Foreign Inward Remittance Advice) for RBI compliance.

The same model works for GBP, EUR, CAD, AUD.

Global Virtual Account vs EEFC Account

Who Should Use Global Virtual Accounts

Exporters: Receive payments from international buyers without SWIFT deductions. Save ₹15,000-25,000 per transaction on a $10,000 payment.

Freelancers & Consultants: Get paid from direct US/UK clients. Avoid PayPal's 4-5% conversion markup.

SaaS Companies: Collect subscription payments from global customers via local transfers. Better conversion rates than card payments.

Import-Export Businesses: Use virtual accounts for the export leg (receive foreign currency cheaply) while managing import payments through the same channels.

RBI Compliance: What You Must Know

Global virtual accounts for Indian businesses must operate under RBI's FEMA regulations.

Key compliance requirements:

• Provider must have a PA-CB RBI License
• Every inward remittance needs a purpose code
• FIRA (Foreign Inward Remittance Advice) must be generated for each receipts
• IEC (Import Export Code) required for goods trade, not mandatory for services
• GST compliance: Export of services is zero-rated under LUT, goods exports follow standard GST rules

Limitations

• Not all currencies supported, most providers focus on USD, EUR, GBP, SGD, CAD, AUD only.
• FX risk conversion at market rates means fluctuation exposure.
• Provider dependency, if your fintech faces issues, your virtual accounts are affected.
• Not a full bank account, most virtual accounts don't let you hold balances or make outward payments.
• Regulatory changes, RBI frameworks evolve, stay updated on PA-CB and FEMA rules.
• Transaction limits, some providers cap per-transaction or monthly volumes.

FAQs