Investing Can be Interesting & Financial Awareness: PayPal Purpose Codes for Indian Paypal Users for withdrawing funds!

PayPal Purpose Codes for Indian Paypal Users for withdrawing funds!

Many Indian PayPal users still find difficult to understand the Purpose code and which purpose code suits them to withdraw funds from PayPal account.

PayPal introduced the concept of “Purpose Code” in March 1, 2010 and the changes were implemented to comply with Indian regulations for settlements for exports of goods and services. This information was required under the laws of India in order to identify the nature of cross-border merchant transactions.

Link of PayPal official blog:

https://www.thepaypalblog.com/2010/03/new-bank-withdrawal-instructions-for-our-customers-in-india/

The purpose code helps your bank furnish information that may be required by the Reserve Bank of India to identify the nature of the cross border transaction. In accordance with Indian regulations, selecting a purpose for your transactions (i.e. purpose code) is essential. By choosing a purpose code, you help the regulators in identifying the exact nature of your cross-border transaction. This is required to withdraw (or transfer) funds from your PayPal account to your local bank account.

And now with the recent update from PayPal check this: PayPal update for India!

we have to provide this information under paypal it’s a onetime selection and the purpose code you add is stored and used as a default purpose code for all your transactions, until you select a different one.

What else you should also know related to Purpose code:

You are required to select a purpose for funds withdrawal. Based on Indian laws and regulations, all proceeds from exports must be declared to your local (Indian) bank. You may also be requested to furnish supporting documentation (sales invoice, shipping documents, etc.) related to exports by your bank. Currently, PayPal onlyfacilitates transactions involving sale or export of goods and services.

Please note:

The selected purpose will appear as a code on your bank account statement along with the description.

If you have any additional questions related to the Purpose Code on your account statement, please check with your bank for help on this.

The table below provides the purpose group, selected purpose with its corresponding description and a column on who should use this - to help you make an informed choice.

*****Click image to view the original image size