Farhad Irani from Paypal team has come up again with a great news for Indian PayPal users. He has now confirmed that the Indian users need not get an Import Export code [IEC] for withdrawing funds from their PayPal account. Only thing required now is a Purpose code which is way different from an IEC code.
What is PayPal Purpose code?
Purpose code is a five digit alphanumeric code which is to be entered while withdrawing funds from PayPal to your local bank account. This code helps your bank provide information required by the Reserve Bank of India [RBI] to identify the nature of transaction.
You’ll need to wait upto 3rd March for requesting withdrawal to your bank account along with a paypal purpose code relevant to your business. You can find the list of the purpose code required by paypal here.
Commonly used Paypal code for withdrawal are : P0101/P0104, P0301,P0801, P0802, P0803, P0805, P0806, P0902, P1004, P1005, P1006, P1007, P1008, P1009.
If you’ve already withdrawn your money from account prior to March 1st, then you’ll have to wait for few days to get the full amount credited back to your paypal balance [No fees will be deducted]. Once it’s fully credited back you can initiate a withdrawal request again to your local bank account providing the Purpose Code relevant to your business.