PayPal users in India will be required to add the following to their PayPal account in order to be able to receive export-related payments and withdraw money: a purpose code related to the majority of commercial activities for export-related payments, a PAN and a bank account in India (if not previously added). Moreover, PayPal users in India are required to provide a current and accurate postal address on their PayPal account.
In February 2011, as a result of RBI’s new requirements related to the processing and settlement of export-related receipts via online payment gateways, PayPal brought the following two amendments to its online payment service in India. Any balance in and all future payments into Indian PayPal accounts may not be used to buy goods or services and must be transferred to the customer’s bank account in India within 7 days from the receipt of confirmation from the buyer in respect of the goods or service. Also, export-related payments for goods and services into Indian PayPal accounts are limited to USD 500 per transaction. For payment transactions above USD 500, the customers will have to use an alternative payment method.
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