PayPal to allow withdrawal for Indian customers with 'Purpose Code'
From 3rd March onwards, PayPal will allow new bank withdrawals for its customers in India after receiving a 'Purpose Code' for the transaction
Electronic payment gateway PayPal has said that it would allow new bank withdrawals for its customers in India after receiving a 'Purpose Code' for the transaction.
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 India in order to identify the nature of cross-border merchant transactions."
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 India to furnish information required by the Reserve Bank of India to identify the nature of cross-border transactions, Mr Irani said.
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.
Here is the list of purpose codes for Indian users of PayPal:
More in Moneylife
Will the new gold scheme succeed? +1636 views
TODAY'S TOP STORIES
Moneylife Foundation: Maharashtra CM Fadnavis says financial literacy empowers citizens
Grab a Discount Coupon here
- Bought a home? Great! But don’t forget to deduct TDS
- Truncated national anthem played at Jayalalithaa's swearing-in
- No Achche Din for PSU Shareholders
- Nifty, Bank Nifty, Sensex still on an uptrend – Wednesday closing report
- Will the new gold scheme succeed?
- How to Select Stocks for Building Long Term Wealth
What's your say?
What you said
Thanks for casting your votes! View Previous Polls