UPDATE : Purpose code would be needed in order to do a proper withdrawl. Learn more about the purpose code on ThePayPal Blog.
By now everyone knows about the PayPal <-> India fiasco. Few weeks ago, PayPal had stopped all the withdrawal transactions done by any Indian PayPal Account. Services like Xoom profited a lot by helping Verified PayPal users to get their withdrawn done with some transaction fee attached to it. But thanks to Reserve Bank of India and PayPal, the issue has been resolved and everything is back to where it was with some new rules set it action.
PayPal sent out a email announcing that starting from March 3rd 2010, all the withdraw would be resumed back and instructions for the same would be set up from March 1st.
How to Withdraw from PayPal Again?
- For Exporters, you will be able to move your funds out of Paypal into your bank account from March 3rd without any hassle.
- If you are not an exporter (As part of the changes in Paypal, you will be required to fill out a new field entitled ‘Export Code’ when you request a withdrawal.) and would like to move your personal payments from Paypal to your bank account, the wait is not getting over for you anytime soon. Learn how to get a Exporter Code here.
It’s good to see how well PayPal made an email announcement for lifting the ban. Post the earlier ban to withdraw many PayPal users had no clue of this and had to suffer unnecessary charges and inconvenience.
Dear Vidyesh Modey,
We have been diligently working with the RBI and our business partners to resume Indian bank withdrawals for the thousands of Indian businesses who depend on PayPal to sell their goods
or services in the global marketplace.
Today, we are happy to announce that the RBI has allowed us to continue local bank withdrawals for settlements for exports of goods and services. We are currently making changes to
comply with Indian regulations for settlements for exports of goods and services, and we anticipate that, as of Wednesday, March 3rd, customers will be able to use our bank withdrawal service.
As part of the changes, you will be required to fill out a new field entitled ‘Export Code’ when you request a withdrawal. This information is required under the current laws of India in
order to identify the nature of cross-border merchant transactions. On Monday, March 1st, we will be back in touch with specific instructions on how you can move your money into your bank account.
Moving forward, the RBI has told us that PayPal needs specific approvals to allow personal remittances to India, which we currently do not have. Until we get these approvals, personal
payments into India will remain suspended. However, if you are an exporter, you will continue to be able to use the PayPal service for payments of goods and services. In fact, with the
changes we are making to our system, PayPal is now set to be a more powerful engine for exporters in India. With purpose codes for export transactions and FIRCs (Foreign Inward Remittance Certificates), you should now be able to get the export related benefits you seek.
You can check the PayPal blog for additional updates.
We thank you for your business and for your patience during the past few weeks.