Paypal has recently made an announcement that limits paypal account of indian users. When i log in today morning, it prompted to select the purpose code to use as a default purpose code for withdrawals that made hereafter.
It starts with the usual statement Indian Regulations, and this time they didn’t come up with new limitation however.
In accordance with Indian regulations, selecting a purpose for your transactions (i.e. purpose code) is essential. By choosing a purpose code, you help the regulators in identifying the exact nature of your cross-border transaction. This is required to withdraw (or transfer) funds from your PayPal account to your local bank account. It’s a onetime selection and the purpose code you add is stored and used as a default purpose code for all your transactions, until you select a different one.
You may modify paypal purpose code while withdrawing the payment from paypal to your Bank account. Its however not possible to transfer between indian paypal accounts or use paypal to shop online. Paypal restrictions over indian users are expected to be removed in near future. Many have started to search for Paypal Alternatives temporarily and not comfortable though. It will be a big relief for new bloggers and freelancers very much.
Is it compulsory to fill this option, even if withdrawal is through cheques?