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PayPal ( Frequently Asked Questions) For Indians


paypal guide for Indians


Make Money Online – We guys are just working hard to make some money online and the word “Make money online” is a bit famous keyword too.According to my knowledge there are more than 100+ ways to make money online.But making money has never become easier and web geeks are working like mad to achieve their dreams.But what if we are earnings some money and there are no source for us to get paid :O OMG! That’s crazy.So here I introduce you the famous Online Bank called PayPal. Actually I’m using PayPal since a year and I should say its the one and only best platform to get paid for Indians.

Just like we all know, setting up PayPal is not easy.The funniest thing is that some peoples (I’m talking only about Indians) are finding an alternate method to receive payments from counties other than India.But my friend you need to understand one thing that the best way to get payments from others countries easily is none other than PayPal and Iv’nt came through any alternate.According to my knowledge “Payza (Alertpay) and Netteller” is the only alternate oh Sorry they are not at all ย an alternate for Indians.

Some of you may have tried both Payza and Neteller but my friend you’re going crazy and just check the fees I’ve written below you’ll get wondered.

Payza – $20 Minimum Fees (Withdrawal)

Netteller – $12 Minimum Fees (Withdrawal)

PayPal – $0 ๐Ÿ™‚ and that’s the thingy.


Why PayPal For Indians ( F.A.Q)

Many of my friends ask me about setting up and other stuffs on PayPal.So here it is a FAQ by me for them ๐Ÿ™‚

Why PayPal For Indians ?

PayPal is the one and only best method to get paid from countries other than India for Indians.You can receive payments easily.

PayPal Limitations for Indians ?

Yes, PayPal is limiting the Indian users a bit with their features but the reason behind it is “RBI ( Reserve Bank Of India).RBI has provided some limitations for Indian PayPal users.They are,

– You cannot Pay with Your Balance

– Balance is Auto withdrawnย 

– You need PAN Card

– No PayPal App for Indians ( PayPal Rules not RBI)

So these are limitations

What is Auto withdrawal ?

Auto withdrawal is a PayPal feature specially designed for Indians according to the RBI rule.Here is how it works. – ” When you get paid via PayPal it will be added to your balance and within 24 Hours the amount will be converted from Dollars to INR and it will be sent to your bank account which is linked with your PayPal.

PS – You cannot control anything related to it.The amount will be Auto Withdrawn for Sure.

How to Link Bank Account Withย Myย PayPal ? Is it necessary ?

Yes its necessary to link your bank account with PayPal to receive payments from PayPal and to get paid to your bank account.Actually its a part of account verification.All you have to do is “Add a Bank” give necessary details and submit it.

After that you’ll be paid with 2 amounts by PayPal within 5 days.The amounts will be like Rs.1.40 or Rs.2.30 (example) and what you have to do is find both the amount and add it on your PayPal verification area to verify your bank account as well as your PayPal account .To know the two amounts check your Internet Banking account or ask your bank (statement) or go to your ATM and Take a Mini Statement ( Amounts will be there). ๐Ÿ™‚ After that you’ve to provide your PAN Card number to avoid etc limitations.

Can I make purchases with My PayPal Account?

Yes you can but as I said not with your balance.You can link your credit card or debit card in order to make PayPal payments (purchases). The money will be withdrawn from your debit or credit card.

PayPal is not Accepting my Debit Card ๐Ÿ™ Whats Shall I do?

This is a common issue and I’m one of them who is fed up of this feature.Actually I think its a problem with the RBI rules.You cannot link your debit cards with PayPal to make payments.Some debit cards from ICICI and Citi Bank is having good success rate.But you can easily link a credit card.

Any Fees On PayPal Payments?

Yes, PayPal do take a fees from the payment you receive.I cannot say an exact fees but if you get paid $100 you’ll be getting something like $97 and it depends on the country.But ย “NO FEES“are taken when you withdraw your amount and its 100% free expect your conversion charges.

What are Conversion Rates on PayPal?

When you get your payment in dollars , PayPal will convert it to your local currency (INR) and 2% conversion charge is taken.According to my knowledge if the current dollar rate is Rs.60 then the conversion is done at the cost of Rs.58 ๐Ÿ™ .

Do I need a PAN Card for Setting PayPal?

As an Indian you need PAN Card to Verify and receive payments to your bank account.

How Long It Takes to Receive Payments to Bank?

Well, it depends.On an average you’ll be paid with 4-5 days from the date of withdrawal.

Can I withdraw my Money from PayPal Manually?

Yes, you can! Suppose if you’ve received a payment from PayPal say $100 then you can directly withdraw it by clicking the withdraw button.Else if you are not withdrawing the amount for 24 Hours then the money will be auto withdrawn ๐Ÿ™‚

What is Purpose Code and Why Do I need it?

To be simple! Purpose code is a code with a number which helps the PayPal to know how you make money.If you are a blogger or content writer and getting paid for it then keep your default purpose code as “Freelance Journalism” that’s it .Nothing more to worry, because its an RBI rule.

How Can I Receive Payments to PayPal?

You are using your email id to login to your Paypal ,so just give that Email ID as the PayPal ID to get paid ๐Ÿ™‚

ย How many Emails I can add on my PayPal ?

You can add up to 10 Emails ๐Ÿ˜‰

Will PayPal Use My PAN Card Details?

I’ve contacted PayPal regarding this and they replied,

I do understand your concern however I would like to inform you thatย PayPalย is not related with any of the Income Tax.ย PayPalย asks for theย PANย carddue to RBI guidelines which only proves your identity. If you will link yourย PANย card, it will not effect you Tax. It just confirms your Identity.”

To Be More Clear!ย You have to setup your account with perfect details and you have verify your account.After verification you can receive payments from anywhere.The payments will be auto withdrawn to your bank account in India. Simple!

Hope that ย helps ๐Ÿ™‚ If you have any more doubts please feel free to ask through comments ๐Ÿ™‚


  1. Perfect Guideline! I still remember that all question which I asked you before setting up my paypal account ! hehe.. bdw thanks for this awesome article and thanks for supporting me ๐Ÿ™‚ One of the best Blogger Friend! ๐Ÿ™‚

  2. Good information about Paypal. I do had some doubts before coming to site but now its cleared.

  3. Thank you so much Krishna for posting this FAQ Article. It clearly answers all my doubts ๐Ÿ™‚

  4. nice and informative…..unique article idea…hats off

  5. Excellent and detailed guide. Well, the retributions are really frustrating for the Indian Paypal users, it will be great if these restrictions are taken away for Paypal Indian users.

  6. Nice article krishna many of the bloggers now a days are clueless about paypal and struggling with it. Hope this guide helps them out

  7. the last point was the only one thing i had to be clear about,thanks keep posting such useful things

  8. jignesh

    weather the payer is also required to get him on to make the payment.
    I mean, on my website, i have set paypal buy now feature, now if someone wants to purchase my product and he clicks on buy now button which will take him to paypal payment gateway. Now if he is required to get registered with paypal to make? payment

  9. Hi Krishna ๐Ÿ™‚

    Well , the history says there is some kind of hate and love relationship between Paypal and Indians. Always , there is some kind of errors around. Well , I’ve managed it after experience ๐Ÿ˜€ Still , I had some questions more , this faq made it clear ๐Ÿ™‚

    Thanks Krishna ! ๐Ÿ™‚

  10. Nicely explained bro. Just one doubt..

    Is there any condition of minimum transactions per year or something like that.
    What if Paypal account not used for a long period of time say one year,is there chances of getting account deactivation .

  11. A Perfect Article cum FAQ report on Paypal.

    But am not agree with a statement you said they convert and send money to your bank account within 24 Hours.
    actually i never got any payment that in 24 Hours it took 2-6 working days to transfer the money in bank account.

    • I mean they process the payment to bank within 24 hours ๐Ÿ™‚ autowithdrawn ๐Ÿ™‚ you got it wrong bro ๐Ÿ™‚ anyways thanks

  12. Hi Krishna,

    Thanks for clearing my all doubts about Paypal. Hmm, I hope Paypal unlock these limitations in future.

    Sagar T Rajan

  13. praveenteja

    how much the fees for buying 1 item from ebay(U.S.A) on paypal

  14. Tom

    Paypal is too tough on Indians.
    I do not have credit card, But have Visa powered debit card, but its not accepting.

    God knows when we will be set free…

  15. romy


    I read your detailed article and appreciate it……thanks:)

    just one question,

    What is the minimum amount (in USD) required to be have in Paypal account for auto withdrawn or manual withdrawn to

    bank account as the case may be by Indian Paypal User?

  16. Sasadhar Bhaumik

    Hi Krishna,
    First of all I would like to thank u for your kind information . I have some doubt on PayPal. I want to know some facts before opening an accounts on PayPal.Those doubts are
    1- which banks credit/ debit card are accepted easily?
    2- I decide to earn money by some survey sites , So what will be my purpose code?
    3- Have I to pay any kind of tax? If yes, then how?
    4-Deference between credit and debit card?
    5- if you can please post top 12 genuine legimate survey site for Indians that acully pay.
    6- please give us a detail about ” Earn money through serve sites without any investment”
    And last time I again thank u. I am waiting for your answer as it helps us of middle class family to earn money.
    Please reply us with your kind information as soon as possible as we trust your kind help. And please don’t mind for my long queries.

  17. Rajasekar Mani

    Hi all, Today I have added my citibank debit card (master card) with paypal and paypal immediately deducted Rs. 62.98 from my bank account. And, for verification purpose, another Rs. 122.82 has been deducted. Palpal email said that the later amount Rs. 122.82 will be return to the card within 3 to 5 days but no details about the first amount deducted. Any idea about this?

  18. Wow.. This is so helpful and cool, KM . I have been looking for all the questions regarding PayPal as I am new to freelancing and I am on my way to finish a few projects, which I am likely to be paid in US$. So, all kudos to this post. Thanks-thanks-thanks ๐Ÿ™‚

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