Purpose Codes now required for PayPal withdrawals
PayPal, an electronic payment gateway, announced its new Purpose Code yesterday. In order to conform to Indian security rules, PayPal has introduced the Purpose Code as a means of verification for all withdrawals (from PayPal account to local bank account) made by Indian customers, starting from 3rd March.
The Purpose Code is used to tracking the nature of cross border transactions whenever required by the Reserve Bank of India. Customers have to fill in this field, by choosing a suitable code from a variety of purpose codes to denote the sort of transaction they are making, from travel to content to information technology. If customers are unable to find a suitable code, they can contact PayPal for assistance. They will also be required to submit additional documents such as invoices as proofs.