Paypal is bullish about Indian market despite the RBI guidelines and the company is now asking all its users to add a purpose code, PAN, and bank account in India to their PayPal account, in order to enable smooth payments.
For a lot of freelancers/SMEs, Paypal is almost dead in India, but lack of a good alternative still makes it a viable play for most of freelancers.
Here is the latest email Paypal Asia team has sent to Indian accounts:
“As part of our ongoing effort to comply with the requirements set out in the notification of the Reserve Bank of India “RBI Guidelines” that apply to all online payment gateways, all PayPal users in India will be required to add the following to their PayPal account in order to continue to receive export-related payments and withdraw money:
- A purpose code related to the majority of commercial activities for export-related payments
- A PAN or Permanent Account Number
- A bank account in India (if not previously added)
To add a purpose code, PAN and bank account:
- Log into your PayPal account at www.paypal.com/in
- You’ll find prompts on the top of your “My Account” page asking you to “Add” your PAN, purpose code and bank account
- Click on the “Add” links and follow the instructions.
Additionally, PayPal users in India are required to provide a current and accurate postal address on their PayPal account. To ensure that your address is up-to-date:
– Log in to your PayPal account at www.paypal.com/in
– Click on “Profile” and select “Add/Edit Street Address”. “
Even after all this, Paypal will not restructure itself as a bank, which is what RBI expects it to [Read : Paypal RBI Issue–Paypal Violated FEMA Act].
Recommended Read: Top Alternatives Of Paypal For Indian Entrepreneurs | How To Choose Your Payment Gateway [R.I.P. Paypal]
Also see: Analyze Your Paypal Transactions With Putler.
PS: These are not new regulations (i.e. addition of PAN number etc), but we are sharing the latest update from Paypal India team, in order to keep our readers updated with latest from Paypal India.