PayPal Replaces Export Code With Purpose Code For Indian Users
By on March 1st, 2010

Let’s be honest, for the past few weeks, PayPal has been playing around with the sentiments of Indian users, who relied on it to send and receive payments online. First of all they stopped personal payments to and from India and failed to notify users about it.

PayPal Logo

In the weeks that passed they came up with a lame explanation, and later said that they would restart bank withdrawals in India, but users would require a Import Export Code. Now, in a new development, which is good news for PayPal India users, PayPal has said that Indian users will no longer require an Export Code and will instead have to use a "Purpose Code".

Purpose Code and More Details

Purpose Code is a code which will allow the banks you withdraw money to, to identify the nature of transaction. There are several different Purpose codes which can be used based on the type of transaction for which you received money in your PayPal account.

For example, if you exported any goods you will have to use the purpose code P0101 or P0104, if you provided services in Information Technology, you will have to use the purpose code P0801 or P0802 or P0803.

So now users will no longer have to use the earlier suggested Import Export Code for which they would have had to apply for a IEC number with the Government of India. You can download a PDF file containing all the purpose codes in the download section below.

New PayPal Withdrawal Process

For any new withdrawals after March 1st 2010, users will have to provide a Purpose Code while withdrawing money to their bank, this purpose code may be different for different transactions.

However, based on the amount of withdrawal, users will also need to furnish additional documents such as invoices or goods receipts. The max ceiling above which these documents will be required has not been made clear by PayPal yet, but in my experience, this amount should be Rs 50,000, based on my dealing with Indian banks who require users to add the PAN number whenever they are making deposits of 50K or more.

Receiving Payments in PayPal

Sadly, PayPal has not yet enabled the Personal Payments option for Indian users, however, users can receive payments in the following ways.

  1. Using the Pay for Purchases (Goods or  Services) tab
  2. Completing PayPal checkout at your website
  3. Responding to PayPal Request Moneyinstructions (invoices)

Download Purpose Code Table

I have created a PDF file which contains all the Purpose codes, their categories, description and when you should use it. You can download the PDF file for easy printing from here. Please do not link directly to the PDF file, if you want to, link back to this post.

More information and FAQ can be found at the PayPal blog.

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Author: Keith Dsouza Google Profile for Keith Dsouza
I am the editor-in-chief and owner of Techie Buzz. I love coding and have contributed to several open source projects in the past. You can know more about me and my projects by visiting my Personal Website. I am also a social networking enthusiast and can be found active on twitter, you can follow Keith on twitter @keithdsouza. You can click on my name to visit my Google+ profile.

Keith Dsouza has written and can be contacted at keith@techie-buzz.com.
  • Raja

    I am providing username & password to my customers through my website.

    Which purpose code should I use?

    Please help.

    • http://keithdsouza.com Keith Dsouza

      @Raja – It will most like be services provided, please check the PDF above to find the appropriate code though

  • http://immo22269.webs.com K Narayanan

    Dear Keith,

    Came across your techie-buzz.com from google search. I was happy to read the latest news of using the Purpose Code. I am a newbie in Paid to click programs and I was thinking what to do. Please can you guide me about using what purpose code for paid to click program earnings. Should I go in for a PAN Card. Kindly highlight me thru my mail id.

    Thank you once again for the news.

    Thanks & Regards,

    K.Narayanan

    • Indrani

      Mr.K.Narayanan & Keith ,Were you able to find out the purpose code for Paid to click programs & the required documents to be provided for the same to the bank ?

      Please guide

  • Mona

    Thanks for the info Keith. Now do we have to take a print out of the invoice for every payment transaction that we have made using paypal for our banks? With the purpose code thing coming up, do you think the banks will ask for proof of such transactions?

    • http://keithdsouza.com Keith Dsouza

      @Mona – Proof of transactions (receipts/invoices) will be required if you are trying to withdraw more than a certain limit. I think it is Rs 50,000 as most banks ask you for the PAN number when you are depositing anything above 50K to your account, I think the same rule will apply in this case too.

      • Mona

        Thank you Keith.

  • Rajesh

    What has withdrawing money from Paypal to Indian banks got to do with withdrawing money in cash from Indian bank. Are Paypal bothered how much I transfer from my Paypal account to Indian bank. Paypal has no knowlegde of things like PAN card and Paypal does not allow withdrawal in Indian Rupees, so there is no logic of PAN card thing.

  • http://sacredwealth.ws Sandeep

    Hi! I use PayPal to receive my commission from an Online Networking Marketing company called GDI. Your PDF does not have this covered. Can you suggest what can be a code for this? Thanks.

    • http://keithdsouza.com Keith Dsouza

      @Sandeep – You might want to check for Online Payments or use the default code for websites payments.

      • Ankit

        What are the default codes for website payments? I receive subscription fees for selling my expertise in trading markets. What kind of purpose code can suit me?

  • Dwarkkanath Vishwana

    Dear Friend oh no You are Farishatha for me. please accept my hearty welcome . I am going to start working affiliate business. I must subscribe for some business offers or business plan e t c. Then I will start my work and I will start earning commission amount will be credited in my pay pal account. please let me learn which particular
    pay pal code I may use for normal functioning for widrawal of amounts.Or please send me a small list transaction wise I must use. Thanks
    Dwarkkanath Kulkarni

  • http://www.examportal.in rahul

    i use paypal for receiving my payment from google adsense etc.. which purpose code i have to use?

  • DIpan

    Hi i am small seller, i have link where i get items and sell on ebay. what purpose code should i use. i am bit confused.

  • mohammad taha

    which one should i choose ,i am an average seller and buyer on ebay

 
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