PayPal India – Withdraw funds to your bank account absolutely FREE

Indian PayPal users can now withdraw funds from their PayPal account to their bank accounts absolutely FREE!!

Screenshot of Paypal Withdrawl Page

Yes, it was free earlier also, but only if you withdraw funds above INR 7,000 If the withdraw amount was below INR 7,000 you have to pay a fee of INR 50. Now there is no minimum amount for free bank withdrawal. You can withdraw any amount to your bank account absolutely free!!

Purpose Code Mandatory from 22nd August 2011
Paypal India users now need to add purpose code to receive and withdraw money to India banks. In an email, Paypal has pointed out to an acccount upgrade wherein Purpose Code is mandatory requirement now to keep your Paypal account active to recieve money.

Screen Shot of Paypal Indian Login Screen

A year back the purpose code was introduced and was only required when you needed to withdraw money to your bank account. Recently, Paypal India made it compulsory for Indian users to add the 3 requirements to withdraw money.

PAN or Permanent Account Number
Purpose Code
Bank account in India.

Many users fail to use the purpose code. But now you need to enter the purpose code also in order to continue recieving funds. This is to comply with RBI guidelines in India in order to receive export-related payments into your Paypal account and withdraw money. The Paypal FAQ clearly state that “Your account will be limited from receiving payments, in case you fail to do so.”

Auto-withdrawal to Bank Accounts
Remember as per recent Paypal restrictions, 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 Instead, all payments received into your PayPal account must be withdrawn to your linked bank account in India. So what if you don’t withdraw the money?

The FAQ reveals that now your funds will be auto withdrawn to your bank account in India, but that requires PAN, Purpose code and Bank Account. Once your data is complete, Paypal can transfer money to your bank account automatically to comply with Indian regulatory requirements.

Related Readings and Observations

Comments

  1. Sachin says

    Hi I want to know that according to Paypal’s existing rules, the minimum withdrawal amount is $10.

    Now, the new rules states that Indian users will have to withdraw their money every 7 days.

    What if some user has only $1 in his account?

    Will he have to withdraw this $1 too? Won’t the $10 limit apply to him?

      • Subhajit Sil says

        The first thing is there is no minimum amount.
        So even if you are having $0.01 then also it could be withdrawn.
        And also there is no specific time mentioned or any interval given by which you can withdraw the money.

        But, yes if you have a verified account and have completed all task, and if you are successfully connected with your bank account, in that case, if your PayPal balance is more than $0 then your money will be auto-withdrawn even if you haven’t made any request.
        On an average the amount is auto-withdrawn in 24 hours.of receiving the amount.

    • says

      Even if you have only 50 cents in your PayPal account, it will be withdrawn to your bank account. So if you happen to have say, $20.50 and if you are manually withdrawing the money, make sure you transfer the whole amount ($20.50). Else the PayPal bot will initiate another transaction if you leave out say, 50 cents. Also, you can completely leave it to PayPal to auto-withdraw the money, since it will completely wipe the account clean of all the money, no matter how many different currencies you deal with.

  2. Vasu P says

    Hi,

    I want to know that i have no PAN card and purpose code right now so can i register in paypal to draw the money $100 from buyer. Pls reply asap.

    Thanks
    Vasu P

  3. Sazi S says

    I am trying to raise some money from outside. I am working at Saudi and have a NRI account.. can money from any foreign country be debited to it and since i m trying to raise funds the payment will be through paypal and there is no appropriate RBI code.
    Kindly advice.
    Thank you.

    Regards

  4. Vinod says

    Hello,
    Can I send UK pounds from my Paypal account in India?

    Also, I am opening a new account now -- and please inform how do I fund the account?
    Can I do a transfer from my bank account mentioned on Paypal account to the Paypal account so I can use it?

    Appreciate any info!
    thanks,
    Vinod

  5. Abhishek Goon says

    HALLO SIR,THIS IS ABHISHEK.I WANT TO KNOW THAT HOW SHALL I GET MY INDIAN CURRENCY AMOUNT THROUGH PAYPAL WHICH IS ACTUALLY IN FOREIGN DOLLARS AMOUNT?

  6. Santosh N says

    I am in india and doing viewing adds work on internet ptc sites.

    For viewing and clicking these adds they add some dollars in my account.

    So now in paypal account what purpose code should i use ?
    can you guide me?

  7. Riva J says

    I am a self-published author, who’s about to receive payment from Amazon and Smashwords by sale of my book through them. So what purpose code would apply to me.

    1. Content and Journalism.
    OR
    2. Licensing of Creative Work.
    plz, help clear my confusion wih this paypal problem.

  8. Amol says

    Hi, I am working outside India and have a NRE account opened in India. Can I use paypal to send money back to India into my NRE account? What purpose code should I use for this transfers?
    Thanks in advance.

  9. ram says

    i`m a forex trader. trading with oanda.com . i`m regularly withdrawing funds with my paypal account. the purpose code i mentioned was freelance journlasm. the statement was appearing in my bank account was just paypal. (not oanda). and i`m receiving big payments. there will be any problem with this ? because i have paid tax nearly 3000000 inr by mentioning paypal funds (freelance journalism) to Income tax. i know that the forex trading is not allowed in india with rbi regulations. but i have mastered fx trading. because i can`t waste my time with trading bse or nse. there will be any problem ?? please reply me

  10. Mahendra says

    Hi Sir,
    I received $23 from an Italian client … Now I want to know How to withdrwal that Money from my paypal account …

    This is first transaction in my paypal account …feeling exited …

  11. Shankar says

    Sir, I have HDFC Debit Card but it is not being authenticated during sign up. It says that my number is invalid even though I have typed it correctly and also the CVV code.

  12. kash says

    please someone give clear information -- I HAVE INDIAN BANK ACCOUNT. IF I WANT TO RECEIVE MONEY IN IT LINKED TO PAY PAL -- IS IT STILL POSSIBLE. RBI KEEPS CHANGING SO MANY THINGS, I AM CLUELESS OF STATUS RIGHT NOW. I UNDERSTOOD AS OF NOW- WE CANNOT MAKE PAYMENT THROUGH PAYPAL. BUT SINCE I SEE AUTO WITHDRWAL OPTION -- I GUESS WE CAN STILL RECEIVE MONEY GLOBALLY IN ANY CURRENCY TO OUR INDIAN PAYPAL- RIGHT ?

  13. viswanaadh says

    sir, what is the procedure to get money in india from paypal , what is the difference between personal and business paypal account and please tell me howmuch is the commission rate to get money from paypal to any indian bank account , if i have 5000 US DOLLARS in paypal how much i can withdraw in SBI

  14. MARIAMMA says

    Respected Rajendran Sir,
    I have 2 doubts about my Paypal Account
    1. My Paypal Account is bearing my name as Mariamma K.A. but my Pan Card bears the expanded form of the initials . So Pay Pal refused the PAN for verification.
    2. My Bank Account have my Office address whereas Paypal has my house address .
    So, in brief 2 or more matters does not tally for Paypal . My Paypal is not verified .Please suggest a solution . Can you help please ?

    Thanks .

    Mariamma

  15. SONIA says

    HELLO SIR, I WANT TO KNOW THAT HOW SHALL I GET MY INDIAN CURRENCY AMOUNT THROUGH PAYPAL WHICH IS ACTUALLY IN FOREIGN DOLLARS AMOUNT?

  16. Shahab Khan says

    Dear Sir,
    I live in india and do viewing adds work on internet pay to click website
    viewing and clicking advertise & get money in us dollar
    i want to know what purpose code i use ?
    please guide me

  17. Dinesh deo says

    Hello Rajandran sir,

    You gave superb information on paypal. But i am facing a different kind of problem. I am confused about which indian bank account Paypal accepts and recognises well!
    Does it accept PNB??

    Thanks in advance.

    • says

      Yes it accepts any bank having IFSC code. and 100% of the banks in india has the IFSC code and so you can add any indian banks to your paypal account.

  18. faisal says

    Sir i want to know if i have name on my bank account is shaikh faisal ashfaque ahmed and on my pan card its shaikh faisal ashfaque A. So can i transfer money from PayPal to my bank account.

  19. ajay kumar says

    HELLO SIR, I WANT TO KNOW THAT
    HOW SHALL I GET MY INDIAN
    CURRENCY AMOUNT THROUGH
    PAYPAL WHICH IS ACTUALLY IN
    FOREIGN DOLLARS AMOUNT?

  20. sachin says

    Hi,
    Thanks for giving this valuable tips
    I just open a business account for my tech support business in PayPal, and now this is totally active.
    I want to ask what does it mean PURPOSE CODE?
    And how many days I can keep money on my PayPal account?
    Thanks

  21. Zeno says

    Hi Rajendra Sir,

    I am from Goa -- India and am working in Dubai and have a paypal account in Dubai and money in it in US$ which I want to withdraw. How can I do it?

    I also have a visa credit card from a UAE based HSBC bank, connected to the paypal account. But the Bank says i can’t withdraw cash from the credit card against the paypal withdrawn amount. If i do it through a ATM, they will charge me their cash advance fees and interest rates will apply as it will showing as credit taken from the card in cash.

    Please advise urgently as what I should do to get the money.
    .
    Thank you,
    Zeno

  22. Zeno says

    Hello Rajendra Sir,

    on my Paypal account page there is a withdraw to option only for US bank and the second option is Visa credit card.

    I dont know what I should do.

    Please help.

    Thank you,
    Zeno

  23. swati says

    Hi Rajandran,

    I have small home business.
    My US client wants to transfer funds only through Paypal in USD
    I wanted to understand additional costs involved to receive funds, then transfer charges to my icici account(if any) , what will be conversion charges.Any other hidden costs.

    Thanks in advance
    swati

    • says

      When the client is paying money via paypal then paypal will take transaction charges. for example if the current USDINR is at Rs61 per dollar you will be billed at Rs60 per Dollar. And transferring from your paypal account to Indian Bank account is free.

  24. says

    Hello Rajandran Sir,
    It is great to see you still replying to queries years after the original posted date. Thanks for your bighearted service to us.
    My Question is, while setting up my bank acc, paypal asks : “The name on your account must match the name on your PAN card.”. The problem is my Bank account has the name “Balachandra” and on PAN it is printed in my initials as : “B T Bitra”. Will this create problems? Should I go for change of name in either one?
    Secondly, you may have heard about the debate between paypal money transfer vs wire transfer. Some say that for large amounts wire transfer is best, but for freelancers paypal can be sufficient. Your thoughts?
    Thank you.

    • says

      Ideally it doesnt create any sort of problems. Make sure that your pan card is updated. Yes for Large money Wire Tranfer is best where you can get the best rates as paypal charges are higher when comes to Big Money.

  25. Seema says

    Hi Admin,
    I am live in India. I have got 8$ from survey sites. What type of purpose code I have to add in that field? I can’t withdraw my money it has minimum 10$ to withdraw. Please help me. Can I withdraw 8$ & what will happen if I will put my money there up to collecting 10$.

      • Naman Garg says

        Hello rajendra Sir, I have this problem in my mind I have open up paypal a/c with HSBC but due to some reasons I am unable to verify it.
        On withdraw option it says I can withdraw upto 500 usd per month if my a/c is not verified.
        So will I be able to receive my money in my HSBC a/c or not or would it be used as option for only buying gifts, vouchers.
        Please clarify…

  26. Taksh Srivastava says

    Sir I am going to use neobux, it requires a paypal account to withdraw money. I am having 2 doubt about
    paypal.
    1- Do I need to use net banking in my bank account to withdraw the money from pay pal and send it to my bank account.
    2- what will be my purpose ode for the same.

  27. Akash says

    Hello Alll

    I am a freelancer and working on odesk .Now i want to get payment from my client .They have transfer on odesk and from odesk i have transfer into my paypall account . Then please tell me the further step to get my money in my bank account . and amount is more .so any problem from banks side for large amount regarding tax or etc .

    and also please suggest me any other method to get that money directly in my bank account with lesser fee.

    Thanks in Advance !

    • says

      In Paypal you have to link your bank account. Once money came to your paypal account it will be automatically withdrawn to your bank account. And banks are not currently deducting any taxes automatically which you need to file it manually.

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