PayPal Rules For Indian Users


How To Open/Create PayPal account ?

This could be the question people might start searching answer for in some months or years time. Because new users may not know all the information needed to open and start making use of PayPal account.

If you are an Indian PayPal user, then you have a different set of rules than PayPal users of other countries.

Here are the basic things to keep in mind while opening a PayPal a/c:
These are mandatory things to have, to open and enjoy the benefits of PayPal a/c.

1. PAN or Permanent Account Number
2. Purpose Code
3. Bank account in India

According to new PayPal rules, you should not keep any balance in your PayPal account for more than 7 days. It should be withdrawn to the bank a/c which is connected with your PayPal a/c with in 7 days, what-so-ever the conversion rates be on those days 🙁


PayPal also has auto-withdraw option available for Indian users.
Goto Profile -> Add/Edit Bank Account and click on “Make Auto Withdrawal” button.

Add PAN Number:


Your PayPal a/c -> Profile -> My Details -> Click on Add next to PAN.

Add Bank Account:


Your PayPal a/c -> Profile -> My Money -> Click on Add my bank next to Bank accounts.

Add Purpose Code:


Your PayPal a/c -> Profile -> My Money -> Click on Add next to Purpose Code.

Note: I’m a blogger and freelancer, I have added “Freelance journalism” as my purpose code.

Add Your Current Postal Address:


Your PayPal a/c -> Profile -> My Details -> Click on Update next to the Address field.

NOTE: One thing to know clearly is; From now you will not be able to pay for any product, service or anything using the balance present in your PayPal a/c. You should pay only by the credit card that is connected to your PayPal account. i.e., You have to first transfer the balance amount in your PayPal a/c to your Bank Account, and then pay from your Bank Account via your PayPal account! Now you may ask, whats the catch ? This is the rules RBI has set for Indian PayPal users, so we have to follow it.

Related Read:
Withdraw Money From PayPal To Bank Account.
PayPal Button for Accepting Payment For Multiple Products.

3 thoughts on “PayPal Rules For Indian Users”

  1. Hello Satish,

    While adding a card from [Profile->Add/edit Credit Card] i saw they are saying that i can add a debit card (also called cheque card) only if A visa or Master Card logo is printed on the card. It means that a Visa or Masrter Card approved Debit card can be used to pay/buy with Paypal. Is it true ?

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