Update Your PayPal account to avoid your account getting limited from receiving payments... (For Indian PayPal Account Users)

In order to comply with the RBI Guidelines, all PayPal users in India receiving payments from cross-border sale of goods and services and withdrawing money, are required to update their PayPal account by adding:

• PAN or Permanent Account Number
• Purpose Code
• Bank account in India

By adding this information, you will continue to receive payments into your PayPal account and your account will not be limited from receiving future payments. You will also be able to withdraw money to your bank account in India. Or, allow your money to be auto-withdrawn into your bank account. If you currently have a PayPal balance, you will also need to update your PayPal account with the information.



FAQ Related to current update:


Why do I need to add a Purpose Code, PAN and bank account in India?

In order to comply with the RBI Guidelines all PayPal users in India must add a Purpose Code, PAN and bank account in India to receive export-related payments into their PayPal account and withdraw money.
  Who needs to add PAN, Purpose Code, bank account in India and update postal address?

• Those who receive payments into their PayPal account and withdraw money, and
• Those who pay for online purchases and currently have balance in their PayPal account.

Note: All customers can continue to use their PayPal accounts with a card linked to it to safely make online purchases.



I have added all of my information why is my account still restricted?Thank you for adding your appropriate information and for offering PayPal to your customers. In keeping with RBI regulations, we need to validate your PAN information which can take 1-2 days to complete. Your account will be updated as soon as we have completed this procedure.
I only use my account to make purchases, do I need to update my account?
No you do not need to do anything to continue using your credit card funded PayPal account to make purchases across the world.

What is a Purpose Code?A Purpose Code is a code you select on the type of commercial activity for which you are receiving export-related payments. In accordance with the RBI Guidelines, selecting a Purpose Code for your transactions is essential.

What if I don’t add a Purpose Code, PAN and bank account in India?In accordance with the RBI Guidelines, all PayPal users in India are required to add a Purpose Code, PAN and bank account in India in order to receive export-related payments into their PayPal account and withdraw money. Your account will be limited from receiving payments, in case you fail to do so.

PayPal customers in India are not able to complete payment for their purchase via PayPal account balance on my website. Why? Unfortunately, customers in India are not allowed to fund purchases from their PayPal account balance. PayPal currently only offers businesses the ability to accept export related payments.


Will my customers be able to complete their checkout with their PayPal account balance?

 Unfortunately, customers in India are not allowed to fund purchases from their PayPal account balance. This means that your customers will need to link a credit or debit card to their PayPal account to make purchases with PayPal. This change is to ensure that we continue to comply with the RBI Guidelines.
Source: PayPal India