PayPal – New Regulatory Update for India
You are perhaps aware of changes to PayPal User Agreement for India with effect from March 1, 2011 that have affected small business India users of PayPal the most as they receive micro-payments. From now on all PayPal users in India will be required to add a purpose code, PAN, and bank account in India to their PayPal account in order to continue to receive export-related payments and withdraw money.
I have published two articles on February 4, 2011 and April 1, 2011 on this blog about ‘Changes to PayPal User Agreement for India’ with effect from March 1, 2011.
PayPal User Agreement for India
How it affects the small business India PayPal users the most
Changes to PayPal User Agreement for India
Inconvenience caused to India PayPal users due to upcoming changes
India users of PayPal like me received an email from PayPal on May 9, 2011 announcing new regulatory update: add a purpose code, PAN, and bank account in India to your PayPal account.
If you have missed out the email, it reads as follows:
Action Required: Important Update for PayPal Users in India
New regulatory update: Add a purpose code, PAN, and bank account in India to your PayPal account
Dear Subrato Paul,
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:
- Log into your PayPal account at www.paypal.com/in
- You’ll find prompts on the top of your “My Account” page asking you to “Add” your PAN, purpose code and bank account
- 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 into 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
As I am holding a verified Premier PayPal account for many years, I have already added all these information. But if you are a new account holder and you have not yet added PAN, and a bank account in India or validated your postal address, in your own interest it’s time to do so without delay. If you don’t have a PAN number, you should get one without delay, otherwise you will have problem in withdrawing money from your PayPal account.
Reach out to PayPal customer support teams by following the steps below:
1. Log in to your PayPal account;
2. Click “Contact Us” at the bottom of the page.
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How it affects the small business India PayPal users the most
