Q: Why do I need to add a Purpose Code, PAN and bank account in India?
In order to comply with the RBI Guidelines all PayPal users in India must add a Purpose Code, PAN and bank account in India to receive export-related payments into their PayPal account and withdraw money.
Q: Who needs to add PAN, Purpose Code, bank account in India and update postal address?
- Those who receive payments into their PayPal account and withdraw money, and
- Those who pay for online purchases and currently have balance in their PayPal account.
Note: All customers can continue to use their PayPal accounts with a card linked to it to safely make online purchases.
Q: I have added all of my information why is my account still restricted?
Thank you for adding your appropriate information and for offering PayPal to your customers. In keeping with RBI regulations, we need to validate your PAN information which can take 1-2 days to complete. Your account will be updated as soon as we have completed this procedure.
Q: I only use my account to make purchases, do I need to update my account?
No you do not need to do anything to continue using your credit card funded PayPal account to make purchases across the world.
Q: Is PayPal leaving India?
PayPal is not leaving India and will continue to help you grow your cross-border business. Currently, we are working with the RBI to comply with their Guidelines which apply to all payment gateways in India. As a result, we require our users in India to update their PayPal account in order to stay compliant to the RBI regulations.
Q: What is a Purpose Code?
A Purpose Code is a code you select on the type of commercial activity for which you are receiving export-related payments. In accordance with the RBI Guidelines, selecting a Purpose Code for your transactions is essential.
Q: What if I don’t add a Purpose Code, PAN and bank account in India?
In accordance with the RBI Guidelines, all PayPal users in India are required to add a Purpose Code, PAN and bank account in India in order to receive export-related payments into their PayPal account and withdraw money. Your account will be limited from receiving payments, in case you fail to do so.
Q: I have a US bank account added to my PayPal account, do I still need to add a bank account in India?
Yes, in order to receive export-related payments and withdraw money you will need to add a bank account in India. Failure to do so will result in your PayPal account being limited from receiving payments.
Q: Can I link a US bank account to my PayPal India account?
Based on RBI Guidelines, PayPal has removed all US bank account(s) linked to your PayPal India account. Hence, in order to receive export-related payments and withdraw money you will need to add a bank account in India. Failure to do so will result in your PayPal account being limited from receiving payments.
Q: Why will PayPal not allow me to keep money in my PayPal balance?
PayPal users in India are not allowed to hold money in their PayPal account as balance. Instead, all payments received into your PayPal account must be withdrawn to your linked bank account in India.
Q: Will my customers be able to complete their checkout with their PayPal account balance?
Thank you for offering PayPal to your customers. Unfortunately, customers in India are not allowed to fund purchases from their PayPal account balance. This means that your customers will need to link a credit or debit card to their PayPal account to make purchases with PayPal. This change is to ensure that we continue to comply with the RBI Guidelines.
Q: PayPal customers in India are not able to complete payment for their purchase via PayPal account balance on my website. Why?
We're glad that you offer PayPal to your customers. Unfortunately, customers in India are not allowed to fund purchases from their PayPal account balance. PayPal currently only offers businesses the ability to accept export related payments.
Q: What is auto withdrawal?
Auto withdrawal is the process of automatically transferring your money from your PayPal account into your bank account in India.
Q: Where will my money be auto withdrawn to?
Your PayPal balance will be auto withdrawn to your bank account in India. If you have one bank account added to your PayPal account, it will be set as your auto withdrawal account. In case you have more than one bank account added to your PayPal account, you will have an additional option to select your auto withdrawal account in India.
Q. Why is my money being auto withdrawn?
This is an Indian regulatory requirement and applies to all PayPal users in India.
Q. When does auto withdrawal happen?
Your PayPal balance is auto withdrawn to your local bank account in India daily. To account for processing timeframes, please allow for 5-7 business days after your money is auto withdrawn from your PayPal account for the money to show up in your bank account in India.
Q. How will PayPal refund my buyer if I've balance in my PayPal account? What if I've no balance in my PayPal account?
If you've balance in your PayPal account, we will use your balance to make refunds to buyer's credit card. If you've zero PayPal balance, we will refund the customer only when balance becomes available in your PayPal account.
Q. How long does it take for my buyers to get refunded?
Your buyers are refunded immediately. The refund is made to their credit cards only.
Q. I am an online merchant and I've newly integrated PayPal on my website. Will my PayPal balance be auto withdrawn too?
Yes, auto withdrawal will apply to new sellers without any transaction history.
Q. Can I withdraw my money?
You can also withdraw your money. Here’s how:
- Log in to your PayPal account and click on Withdraw at the top of the page.
- Select the bank account you want to use.
- Enter the amount and click on Continue.
- Select your Purpose Code for withdrawal.
- Make sure that your information is correct and click on Continue.
Q. What are the fees charged for withdrawal?
There are no fees* charged for auto withdrawals made to your bank account or the withdrawals that you make to your bank account.
*If foreign exchange or currency conversion is required to complete any transaction, this will be performed by a licensed financial institution. The foreign exchange rate is adjusted periodically on a daily basis to reflect market conditions and includes a 2.5% processing fee which is retained by PayPal. The exact exchange rate that applies to your transaction will be displayed to you at the time of the transaction.
Q. Can I use my PayPal balance?
In accordance with the RBI Guidelines, you cannot send payments for your purchases with your PayPal account balance. Please use your PayPal account with a card linked to it to send payments.
Q: I am unable to find the Mass Payment feature in your website. Why?
In order to comply with the RBI Guidelines, PayPal users in India are not allowed to use the Mass Payment feature. Our mass payment feature supports only payment from balance and not credit cards.
Q. Is it true that that I can receive up to USD 3000 per transaction into my PayPal account?
Yes , PayPal users in India will be able to receive export-related payments of up to USD 3000 per transaction into their PayPal accounts, effective immediately. This has been approved by the RBI. The earlier limit of USD 500 per transaction for export-related payments will no longer apply.
Q. What message will buyers see if they try to send payment more than the applicable limit?
Buyers will be informed about this per transaction limit and that they cannot exceed this limit set by the RBI.