It has been over a month since PayPal suspended withdrawing funds to bank accounts in India. Several personal payment made through paypal were reversed and online businesses in India were affected to the worse. As the previous talks with RBI failed to come to a conclusion, everyone where left clueless about the online transactions. This paypal issue has made several small businesses shut down. It has been like having a lot of money that can’t be spent. Thankfully, this issue has come to a positive end. Paypal has resumed its operations in India. However, they have realsed some new paypal instructions to withdraw cash to bank accounts. The paypal amendments state that Indian paypal users can get funds only through the following methods. No more personal payments can be received from customers (business transactions cannot evade paypal commissions anymore)

• Using the paypal services tab
• Processing the order through paypal checkout in the website
• Sending money to the ‘Request Money’ queries

Another addition to paypal rules is that you have to enter a purpose code for any transaction. Click here to see the list of Paypal Purpose codes, click here

Charity funds cannot be processed through paypal and obviously there is no purpose code for charity funds. However, online merchants can have a great sigh of relief as paypal has succeeded in working out this issue with paypal