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 Instead, all payments received into your PayPal account must be withdrawn to your linked bank account in India.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The FAQ reveals that now your funds will be auto withdrawn to your bank account in India, but that requires PAN, Purpose code and Bank Account.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

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Rajandran R

Rajandran is a trading strategy designer and founder of Marketcalls, a hugely popular trading site since 2007 and one of the most intelligent blog in the world to share knowledge on Technical Analysis, Trading systems & Trading strategies. More From Rajandran R »

29 comments… add one

  • Jessy August 22, 2011, 12:48 am

    this is a very good information. Rajendran sir, you are helpful as usual.

    Reply
  • Sachin August 30, 2012, 4:14 pm

    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?

    Reply
    • ghumki August 3, 2013, 5:05 pm

      i want to know these also……….

      Reply
    • Gowtham August 21, 2013, 4:10 pm

      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.

      Reply
  • Vasu P February 18, 2013, 10:23 am

    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

    Reply
    • Rajandran R February 18, 2013, 11:17 am

      @Vasu

      You cant as RBI guidelines are strict here.

      Reply
  • Sazi S June 11, 2013, 2:08 pm

    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

    Reply
  • Vinod July 31, 2013, 5:39 pm

    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

    Reply
    • Rajandran R July 31, 2013, 11:59 pm

      @vinod : If you are from India then you can send money to anyone across the world instantly.

      Reply
      • Vinod August 1, 2013, 6:41 am

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

        Is that possible?

        Reply
        • Rajandran R August 1, 2013, 9:22 am

          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.

          Reply
  • Abhishek Goon September 16, 2013, 6:13 pm

    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?

    Reply
    • Sooraj Jain November 3, 2013, 12:08 pm

      I want to know the answer too

      Reply
  • Santosh N October 1, 2013, 9:10 pm

    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?

    Reply
    • Rajandran R October 1, 2013, 10:50 pm

      purpose code in the your case is freelancer.

      Reply
  • Riva J October 10, 2013, 1:14 am

    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.

    Reply
    • Rajandran R October 10, 2013, 11:40 am

      When you are mozetizing your content then the right choice should be Content and Journalism.

      Reply
      • Riva J October 11, 2013, 3:08 am

        Thanks, Rajandran.

        My confusion rose when i read the word ‘manuscript’ and even ‘films’ in ‘Licensing of Creative Work’.
        Just wanted to be sure.

        Reply
  • Amol November 12, 2013, 4:47 pm

    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.

    Reply
  • ram November 30, 2013, 1:04 pm

    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

    Reply
  • satish narayan joshi December 1, 2013, 12:15 pm

    how can i open a new paypal a/c. please guide me.
    regards.
    satish joshi.

    Reply
  • Mahendra December 19, 2013, 2:42 pm

    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 …

    Reply
    • Rajandran R December 19, 2013, 2:47 pm

      First add your bank account and link to your paypal account. Rest Paypal will take care on withdrawal part!

      Reply
  • Shankar December 26, 2013, 7:57 pm

    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.

    Reply
  • kash February 14, 2014, 12:00 pm

    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 ?

    Reply
  • viswanaadh March 23, 2014, 1:21 pm (4 weeks ago)

    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

    Reply
  • MARIAMMA March 29, 2014, 11:14 pm (4 weeks ago)

    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

    Reply
  • walling April 12, 2014, 1:48 pm (2 weeks ago)

    It clears my thought..

    Reply

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    • Rajandran is a Market Analyst and founder of Marketcalls, one of the most intelligent blog in the world to share knowledge on Technical Analysis, Trading systems & Trading strategies.