PayPal Sends Out Notice to Indian Users-PayPal RBI

Users need to add purpose code and PAN number to accounts 

After PayPal's tussle with the RBI, the payment service provider amended its User Agreement for India in January 2011. In order to abide by the guidelines set by RBI, PayPal has sent out a mandate to its Indian users for adding three details: purpose code, Permanent Account Number and any Indian bank account details (in case not added earlier). So, in order to continue withdrawing money and receiving export-related payments, Indian users need to add these details to their PayPal accounts.

Several India based PayPal users will have to go through an additional step of adding information to ensure smoother transactions while using the said payment service. In order to abide by the RBI recommended regulations, PayPal sent out a regulatory email to Indian users. As per the notice, Indian PayPal users are required to add PAN number and a purpose code. Now those who're wondering what purpose code is, read on. Purpose Code is a specific code used by user's bank to furnish information regarding the nature of transaction as and when required by the RBI.

Following is the email sent out as PayPal regulatory notice:

As part of our ongoing effort to comply with the requirements set out in the notification of the Reserve Bank of India ("RBI Guidelines") that apply to all online payment gateways, all PayPal users in India will be required to add the following to their PayPal account in order to continue to receive export-related payments and withdraw money:

- A purpose code related to the majority of commercial activities for export-related payments
- A PAN or Permanent Account Number
- A bank account in India (if not previously added)

To add a purpose code, PAN and bank account:

1. Log into your PayPal account at www.paypal.com/in
2. You'll find prompts on the top of your "My Account" page asking you to "Add" your PAN, purpose code and bank account
3. Click on the "Add" links and follow the instructions.

Additionally, PayPal users in India are required to provide a current and accurate postal address on their PayPal account. To ensure that your address is up-to-date:

- Log in to your PayPal account at www.paypal.com/in
 - Click on "Profile" and select "Add/Edit Street Address".

In case you have any queries, please log into your PayPal account and click on 'Contact Us' at the bottom of the page.

For users who have already added a purpose code, PAN, and a bank account in India, as well as validated their postal address, please treat this email as a reminder only.

Sincerely,

The PayPal Asia Team