Web

PayPal Returning to India Without Personal Payments

paypal suspends some transactions in india logo

Early last month online payment service PayPal stopped processing some transactions in India, and even reversed some funds transfers to personal accounts while it worked with the Reserve Bank of India (RBI) to “address questions” about the nature of PayPal’s service. Now, PayPal says it expects to be up and running in India again as of March 3, enabling withdrawals from PayPal accounts to Indian bank accounts for goods and services.

Personal withdrawals to Indian bank accounts will still be suspended: users will be only be able to get their money by check.

Transactions for goods and services to Indian bank accounts will now need to be tagged with a “purpose code” categorizing the nature of the transaction; PayPal says the purpose codes are required under new Indian laws for all cross-border transactions; depending on the amount of the withdrawal and purpose case, a bank may require additional documentary proof of the transaction, such as invoices and receipts.

The categories leave some organizations out in the cold; for instance, charities based in India cannot process contributions via PayPal under the new purpose codes.

Users whose withdrawals were suspended should see their PayPal balanced restores as of March 1, with fees and charges applied to the disallowed withdrawal transactions being refunded separately.

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