Electronic payment gateway PayPal has said that it would allow new bank withdrawals for its customers in
In his blog, PayPal's business head for Asia-Pacific, Farhad Irani said, “When you select the ‘Withdraw Funds’ option on your PayPal account after 3rd March, we will ask you to fill out a new field entitled ‘Purpose Code’. This information is required under the laws of
Mr Irani also clarified that Indian users will no longer be able to receive personal payments. Customers of Indian PayPal users will have three options for making any payment such as using the pay for purchases (goods or services) tab, completing PayPal checkout at the user's website and responding to PayPal “Request Money” instructions (invoices). However, for each payment, transaction users will have to provide a purpose code for the transaction.
The purpose code will help banks in
He also said that according to Indian law, based on the value of withdrawal and the purpose code in the Indian customer's declaration, banks may require him/her to provide documentary proof such as invoices or goods receipt forms as applicable to reconcile with withdrawal. — Yogesh Sapkale
Here is the list of purpose codes for Indian users of PayPal: