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 Instead, all payments received into your PayPal account must be withdrawn to your linked bank account in India.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The FAQ reveals that now your funds will be auto withdrawn to your bank account in India, but that requires PAN, Purpose code and Bank Account.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


  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.

    • Gowtham 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


    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.

    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.


  4. Vinod says

    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!

      • Vinod says

        Thanks -- but I want to fund the PayPal account using my bank account. (no credit card available).

        Is that possible?

        • says

          you can fund directly to paypal account. You need a credit card to link with paypal to send fund transfer directly to your opponent and a bank account linked to receive funds.

          • GOPI DAYAKAR says

            I need to pay $ 20 through PAYPAL to one of the social networking website. I do have PAYPAL ACCOUNT and I have linked my Andhra Bank Account. But I am unable to transfer money from my account to PAYPAL account. Pleae guide me how to transfer fund from my bank account to PAYPAL ?

            Thanks & Regards,

          • GOPI DAYAKAR says

            Dear Sir,

            Please suggest how I can add funds to my Paypal Account ? I have alredy linked my bank account and got verified also. when I tried to link up my Andhra Bank Debit card Paypal is not accepting. As I have to pay admin fee of $20 through paypal to one of the social networking site for upgradion of my account with that website. Please advise sir.

            Thanks in advance.


  5. Abhishek Goon says


    • Dipankar Biswas says

      I also want to know the answer too because I have read in one of articles that from PayPal dollar balance it just directly transferred the numerical value….it is a bit confusing please helf.

  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.
    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 . 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


  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 .


  15. SONIA says


  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


  20. sachin says

    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?

  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,

  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,

  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

    • 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
    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.

  28. rahul says

    hey! i wanna ask that when i am trying to withdraaw $5.00 from my paypal to to my bank account i can’t it says minimum limit is $10 what should i do??? please HELP! i have competed every details no restrictions on my account all verified but pls help!

  29. pavan says

    sir ,
    i m having small busiess. i m sole proprietor of my firm having IE code .can i send 400 dollar to company which is in another country with my personal paypal account

  30. Aditya says

    I earned $40 on Recently I completed my studies and am unemployed. Which purpose code suits for me to withdraw the amount ?

  31. Kaviraj says

    I think many people will have this simple but common doubt

    If I have a balance of 10 usd in my Indian paypal account. In the next 5 to 7 days how much will I receive into my bank account . Fee ? Conversion rate? ThAnk you

    • says

      Whatever the money you have in your paypal account regardless of the size your conversion rate will be always done at Paypal
      conversion rate. For Ex if USDINR Spot price is 61.5 then paypal might bill you around 59.5-60.00 this is just a rough estimation.

      • Amit says

        Rajandran is doing very good job, giving detail information about paypal things.

        If any one want to transfer money from ODESK to indian account, the cheapest way is link your indian account to directly to your ODESK account and transfer you money from ODEK to your indian bank account, it will be cheap incompare to paypal.

        Now days we can open USD account in india and if paypal dont charge for currency conversion for indian USD account [there is no currency conversion will require ]. then this would be the cheapest way. but i dont know about this.


  32. GOPI DAYAKAR says

    Dear Sir,

    Please advise what purpose code shall I give in my PAYPAL account. As I supposed to receive payment from one of the social networking site. If I want to change the purpose code which is given already in my PAYPAL account. Can I change it now for appropriate one. ? Please advise sir.


  33. GOPI DAYAKAR says

    Dear Sir,

    I don’t have credit card. Can I transfer fund through someone’s credit card to my Paypal account ?

  34. Satya says

    Can I receive personal PayPal payment (from a friend in another country) and withdraw it to my bank account?
    You must be knowing, PayPal doesn’t charge any fee for personal payments.

  35. Subrata Bose says


    I have a verified PP account. I have linked my bank account, but don’t have a credit card. I want to deposit $60 in, it is a UK based online trading company.

    can I be able to deposit that $60 using my PP balance? as I don’t have a credit card

    & do you know any online virtual credit card providers ? so I can deposit via that VCC through PP?

    Thanks , waiting for your reply :)

  36. Sapna says

    Hai sir!
    I want to know that can we receive money the paypal in the form of Cheque, instead of linking bank account. Is their any option for this to get the amount in the form of cheques.Does they charged to send cheques. If we receive cheques from the paypal what is the procedure to encash the cheque.

  37. sagar rana says

    Hello sir,
    Does the paypal account have any charges ?
    Please reply your feed back is very important to us.

    S rana.

  38. Lali says

    Sir plzz help. i have $5 in my paypal account and my account is verified
    During withdrawal it says min amt should be $10, how can i transfer to state bank account

  39. Veeresh says

    Hello Rajandran,

    First of all Wish you Happy New Year !!

    Just have couple of doubts regarding opening paypal account in INDIA.

    1. . Minimum amount for withdrawing from PP.
    2. Percentage charged by PP / transactions.
    3. Any hidden charges that later accumulate and come as maintainance charges.
    4. Is it safe to use PP and link to local bank account.
    5. Process to create PP account?

    Thanks in advance.. looking forward for your revert.


    • says

      1. Minimum amount for withdrawing from PP.
      A : Now there is no minimum amount for free bank withdrawal
      2. Percentage charged by PP / transactions.
      A : Currency conversion will be there. Mostly higher.
      3. Any hidden charges that later accumulate and come as maintainance charges
      A : No Such
      4. Is it safe to use PP and link to local bank account.
      A : Yes it is safe. You can expect Bank Level Security
      5. Process to create PP account?
      A : Requires a PAN Card (Mandatory). Connect your credit card, Bank account and Address Verification

  40. Pankaj says

    Hello Dear Rajandran R.
    Happy New Year

    Dear One , we just created a website , where user can transfer fund to other for just help by email , can we integrate PayPal for this purpose, this website have more then million user, plz guide me if we integrate PayPal then fund transfer to Indian PayPal account Can withdraw to Bank Account, it is fund raising Portal

  41. Gaurav says

    hello there

    you are doing great job, i read you answer and they are explained well. i have question as well

    i have verified paypal account with my bank account my questions are

    1. i dont have credit card can i link my international debit card if yes
    2. I try to attach my debit card but i receive an error say “your bank is not authorised it” as far i know my debit is internationally valid.
    3. i dont have debit card attach can i still get withdrawal from paypal if i receive money from my client. my bank account is attached and verified.
    4. Can i add funds to paypal through bank if yes how?
    5. Can i make international payment through my bank account as i dont have any money into my paypal account becoz i dont know how to add funds to paypal.

    Please help me

    • says

      1)Currently only Icici , Axis bank , Hsbc , Hdfc ( all bank bank debit card only with EMV chip based cards ) work fine with paypal other bank debit cards might not work.
      2)You cannot add funds to paypal as per RBI regulation. You can receive or transfer funds to one paypal account to another. Even if you receive funds from someone paypal will do immediate fund transfer to your bank account.
      3)You need a credit card to be attached with paypal to do international fund transfer.

  42. Ram says

    Respected sir, If i work for then which purpose code should i use while withdrawing money in my bank account in India. The money in my papal account is in US$.

  43. Nita says

    Respected Sir,

    I am doing Online Data Entry Job and my Employer is situated in US….He wishes to pay me in US Dollars through PayPal….So is it safe to link my Bank Account to PayPal? Also i have account in Bank of India(BOI), so does PayPal supports Bank of India? Also, i wouldn’t be doing any sale or purchase, i would be just receiving my Salary from my Employer in US dollars through PayPal, so will i have to pay any fee for withdrawal? Or any hidden charges or any maintenance fee i have to pay in future?

  44. sang says

    I am an Indian, for how many days can I keep money in my paypal account? Do I need to withdraw it as soon as I get it in my paypal account?

  45. Vaibhav Prajapati says

    Hello Sir,

    I am from India and earning income only from . I am confused . What purpose code would apply to me ?

    Thank You

  46. aravind says

    help me friends :( i have 4.23$ in y my paypal.when i tried to withdraw it to my bank account it says u need atleast 10$ to withdraw :( one of my friend withdrew 4 $ into his bank account 😮 y am i not able to withdraw ?

  47. Manoj says


    Thank you for the valuable information provided.

    I have an NRE account with ICICI. Is it possible for me to transfer funds from paypal to NRE account? I know we can withdraw to a regular bank account. But, since NRE account allows deposits of funds in currencies other than INR I would like to know if it can be done through paypal.


  48. AThi says


    How to transfer money from paypal to my a/c? Do i have to do something in paypal or it will be automatically do it?


  49. Sathish says

    Hi I’ve $1 in PayPal balance when I try to withdraw it says minimum transaction should $10 .. what should I do now?

  50. prasanna says

    respected sir,
    i have been doing survey in uk companies the earnings were sent to my indian verified paypal account.unfortunately i have recevied message from companies.that ” PayPal sent the following error message: PayPal can’t complete for account holders in India.”.hence i request any method in paypal -to get my payment in indian paypal guide me sir.

  51. suraj says

    I want to purchase on eBay now I don’t have PayPal acc.
    but I am interested to opened it.
    can u tel me how to open and req. time for that?
    if I use netbanking from SBI to make payment on eBay it was req. extra fee on transection.
    what is PayPal buying transection time?
    thank you

  52. munni39 says

    i have no pan card..but have bank accoun which i linked to paypal account.can i recieve export money???is it possible to withdraw money if i have no pan card or what is the limit to widraw money without pan card according to rbi

  53. Kiran says

    I want to open PayPal account, but i heard that within 7 days we have to withdraw money to bank account and we have auto withdraw option also. Does Paypal charge anything for auto withdrawal and for how many auto withdrawal happen. And i also want to know about Business account also. Can anyone had the info please clarify me. Thank you….

  54. Raj Jadhav says

    what purpose code to select from that category . if im a freelance webdesigner ? pls if u could inbox me the answer.. I’ll be totally grateful to u bro .

  55. Michael says

    Hello Sir,
    Thanks for your valuable information. Sir I have Bank account, but I don’t have any debit or credit card.
    Sir can I withdraw money from paypal to my bank account.


  56. Harsha says

    Hi Rajendran,

    Just today I got around $ 2.50 into my Paypal India account. When I tried to withdraw it shouted that $10 is the minimum. I have my bank account, PAN and purpose code (Other Information services) in my profile.

    So will that be withdrawal automatically happen within 7 days?


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