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Paypal has increased fund receiving limit to 3000$ for Indian users

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A good news for Indian Paypal users. Now Indian Paypal users can accept payment up to 3000 US$. Previously this limit was 500$. This enhancement is implemented with immediate effect. This can be a big relief for Indian internet marketers, freelancers , bloggers etc.  PAN card and purpose code is mandatory to withdraw the funds to your linked bank account .paypal india

Official announcement

We are pleased to inform you that the RBI will now allow you to receive export-related payments of up to USD 3000 per transaction into your PayPal account, effective immediately.
We sincerely thank you for your understanding and patience over the past few months as we continue to implement the changes required to remain compliant with the RBI guidelines. With these changes completed, you can confidently accept PayPal for your cross-border transactions with our global buyer base of over 100 million active accounts in 190 markets worldwide. We look forward to continuing to support your export business through our global online payment platform.
To comply with the RBI guidelines, you must add a Permanent Account Number (PAN), Purpose Code and local bank account to your PayPal account in order to continue receiving export-related payments.

Present Restrictions for Indian Paypal users

  • Domestic Paypal transaction is not permitted. Means one Indian Paypal user can’t exchange funds to another Indian user.
  • You won’t be able to make use of Paypal balance to purchase products. To perform online payment through Paypal, your account must be linked with a credit card and the money will be deducted automatically from your credit card while doing transaction through Paypal.
  • You are not allowed to keep your balance in Paypal account. Your Paypal balance will be automatically transferred to the linked bank account daily. However it will take 5-7 days to reflect the same in your bank account.
  • PayPal users in India must give a Purpose Code, PAN and bank account in India to get export-related funds into their PayPal account and withdraw money. Hence a valid PAN card and Indian bank account is mandatory.
  • Adding of funds is not permitted through debit cards or from bank account. You have to use the linked credit cards for online purchase.

Paypal can’t leave the emerging online market of India. To run their business in India they have to comply the guidelines of RBI. Regulations of Reserve Bank of India are to make the online and banking transactions safe, secure and transparent. Paypal is not coming under the category of Banks as per the definition of a Bank in India. Here Paypal can work as a payment gateway only, means just as a mediator only. RBI guidelines don’t permit payment gateways to keep the money with them for more than 7 days.

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9 comments… add one
  • No PAN card so no paypal account for me…

  • It is kind of a small relief. I mean we wont like to use paypal as a gateway if the amount is above 500 anyway. That is because of so many loopholes paypal has, biggest of which is the chargeback. A lot of people have been ripped off by clients when they deliver the work and accept payments via paypal and the client later issued a chargeback and got all their money back. People also reported that paypal abruptly froze accounts of people who had almost 12K$ from selling products via ebay, these were the elite sellers with 99% positive feedback but paypal choose to freeze their account with all the money in it just because of one bad review from an arrogant buyer.

    The good side to the ‘limitations’ that don’t allow uploading funds from bank accounts and debit cards is that paypal can not put their hands in my bank account and take the money (like they do in other countries where auto authentication is enabled) incase I withdraw and a bad client decides to file a chargeback, the maximum I lose will be my full credit limit since PP will charge that as a new transaction to my CC but my bank account will still be safe. Is that right?

  • This is Great News but i am not able to use Paypal Because of No Credit card, if there is any Virtual Credit Card Service that works please do share.

  • Rules,rules and more rule when will these guys improve.

  • hi, i transfered fund from paypal to my Andhra bank branch,
    its more than 14 days passed, still i hadnt revived money in my account,
    how much time will require ?

    • Normally it takes five working days. However I too experienced more than 10 days delay. Wait few days more

  • This should be enough for regular transactions. Escrow is always there for higher value transactions.

  • Sir I have one question I have paypal account my bank account and I had provide all things like pan number purpose code etc. But still now my account access is limited and I have paypal balance in my account. I can’t withdrawal it. Paypal want credit card or debit card I had provide my debit card but It will not take. So I have no credit card please tell me credit card is mandatory for paypal? any idea kindly share me..


  • terli

    Thank you for the information sir, truly very helpful.

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