{"id":24056,"date":"2025-09-18T14:44:30","date_gmt":"2025-09-18T09:14:30","guid":{"rendered":"https:\/\/blog.razorpay.in\/blog\/?p=24056"},"modified":"2026-01-09T14:25:07","modified_gmt":"2026-01-09T08:55:07","slug":"p1502-purpose-code-guide","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/p1502-purpose-code-guide\/","title":{"rendered":"P1502 Purpose Code: A Simple Guide for Exporters on Refunds & Compliance"},"content":{"rendered":"

Ever scrolled through your bank statement and spotted a credit with a cryptic label like \u2018P1502\u2019? Your first thought might be that it’s a payment you\u2019ve received. But in reality, that code tells a different story: it\u2019s not a new payment, but a refund or a reversal of a previous transaction.<\/span><\/p>\n

This little code is a crucial piece of the puzzle for anyone dealing with international payments. It’s an inward remittance code set by the Reserve Bank of India (RBI) specifically for funds that are returned for reasons other than import refunds.<\/span><\/p>\n

Understanding P1502 is vital for accurate financial reconciliation and staying compliant with regulations like the Foreign Exchange Management Act (FEMA). In this guide, we’ll walk you through what this code means, when to expect it, and how to manage it without any confusion.<\/span><\/p>\n\n\n\n
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Key Takeaways<\/b><\/h3>\n

P1502 = Non-Import Refund:<\/b> This code is used for inward remittances that are refunds or reversals of payments not related to the import of goods.<\/span><\/p>\n

It’s a Credit, Not Income:<\/b> P1502 always signifies money coming back into your account as a reversal, not as new revenue.<\/span><\/p>\n

Essential for Reconciliation:<\/b> It clarifies why you received a credit, making your bank reconciliation process faster and more accurate.<\/span><\/p>\n

Supports FEMA Compliance:<\/b> Correctly coded transactions provide a clear audit trail for regulatory authorities.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

What is the P1502 Purpose Code?<\/b><\/h2>\n

At its core, the <\/span>P1502 purpose code<\/b> is used by banks to classify an inward remittance as a <\/span>“Reversal of wrong entries or refunds for non-import transactions.”<\/b><\/p>\n

Think of it as the financial equivalent of a ‘Return to Sender’ stamp, but with a specific reason attached. When you send money abroad for a purpose not related to importing goods or services and that money comes back to you, the RBI requires the bank to label it with P1502. This provides a clear, standardized reason for the credit, creating an unambiguous audit trail for both you and the regulatory authorities.<\/span><\/p>\n

When Should You Expect to See the P1502 Code?<\/b><\/h2>\n

You won’t use this code yourself when making a payment, but you’ll see it on your statement when a foreign entity returns your money. Here are a few common scenarios where P1502 comes into play:<\/span><\/p>\n