PayPal has been in the talk for quite some time due to their unexpected behavior. Many Indian entrepreneurs, freelancers and eBay users have suffered a lot in this period.
Eventually, PayPal has sorted out some of the important issues and people from India can now withdraw money from 3rd March. They have updated each user about their latest progress through an email.
Here’s what they have mentioned in the email -
Today, we are happy to announce that the RBI has allowed us to continue local bank withdrawals for settlements for exports of goods and services. We are currently making changes to comply with Indian regulations for settlements for exports of goods and services, and we anticipate that, as of Wednesday, March 3rd, customers will be able to use our bank withdrawal service.
As part of the changes, you will be required to fill out a new field entitled ‘Export Code‘ when you request a withdrawal. This information is required under the current laws of India in order to identify the nature of cross-border merchant transactions.
Although PayPal is going to start bank transaction facility, personal payment system is still blocked for Indian users. Also, if you want to transfer money to your bank account, you will need a 10 digit code (IEC). To get this code, you will have to follow long procedure.
PayPal will be providing more information on coming Monday so that people could enjoy the experience of this service once again. If you want to know how you can get IEC, read following steps thoroughly.
How to Get Import Export Code in India?
As said earlier, it is a 10 digit code. You can get this code by submitting a form to Director General of Foreign Trade office. Download application form from dgft.gov.in or use direct download link given below.
- Download IEC form – Link
- Fill the form appropriately.
- Keep important documents such as PAN card copy, bank certificate, Date of Birth certificate and a Demand Draft of Rs. 250 (Please verify the price of DD from local DGFT office.)
- Submit it to DGFT office.
The steps are pretty much simple, but it would be difficult to predict the ETA of your code.
This is the only way through which you can get your IEC number from Indian government. Don’t go for shortcuts or unethical ways to get your code. I will update this post if I get more useful information regarding PayPal.
Update: Purpose Code is required for PayPal India.
BTW, eLagaan has some detailed instructions and information about the IEC code take a look at http://elagaan.com/business/import-export-code-iec . They also provide a service to get you your IEC code.
Thanks for sharing the link.
One more case of RED TAPE by corrupt, lazy Govt. Clerks of India.
IEC was created at a time when PAN Cards did not exist.
IEC captures duplicate information (same as PAN Card).
Therefore PAN Card should have been enough, no need for IEC. But if govt. of india allows this, corruption and harassment will reduce. NOW THAT CLEARLY IS NOT THE GOAL.
That’s true. IEC should have been kept only for big companies and entrepreneurs.
[...] According to the new rules of Reserve Bank of India, PayPal team has included a new “Purpose Code” field. This code basically helps banks identify the nature of the cross border transaction and it is different from Importer-Exporter Code (IEC). [...]
Thanks, so u mean to start up an internet business also one needs The IEC?
Those who are making transactions from PayPal to Indian banks will have to use IEC.
Myself was only asked to submit details of my PAN card and this seems to be the latest instead of IEC which myself have never been asked for till date.
Can anyone be sure about all updates at PayPal and how it operates smoothly while transacting with banks in India. What is the procedure for NRIs?
Also hope other online accounts like AlertPay too have ease of operating from India and any tranaction from it with Indian Banks?
[...] if you’re an Indian PayPal user, you might be thinking about its alternatives. But wait! PayPal has no *real* alternative and [...]