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 Instead, all payments received into your PayPal account must be withdrawn to your linked bank account in India.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The FAQ reveals that now your funds will be auto withdrawn to your bank account in India, but that requires PAN, Purpose code and Bank Account.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

    • 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.

  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. aditya patil says

    hello sir i receiving check in doller so how to withdraw money india and which bank?

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