Reserve Bank of India allows the online money transfer firm to resume operations
Reserve Bank of India allows the online money transfer firm to resume operations
A code with a purpose?
Well, that's what PayPal users will try to find out in order to make their online business transactions, as per a new directive by the Reserve Bank of India.
PayPal was asked to suspend transactions in India because the popular e-commerce firm was not registered with the Reserve Bank of India. A company is required to register with the central bank to offer money transfer services.
The online money transfer firm announced the resumption of its operations on Thursday, but the customers will have to fill the 'purpose code' that will pop up on the website at the time of transaction. The code was introduced on the advice of the RBI so that the central bank can keep a tab on the cross-border business transactions through PayPal.
The revamped withdrawal system involves users to fill an 'export code' to initiate a withdrawal. The personal payments will remain barred to all Indian PayPal users (business, premier and personal account holders) till the company gets approval to allow personal inward remittances from the bank.
While making any payment, when you allow withdrawal from your PayPal account in India, you will be required to provide a purpose code for the transaction. The purpose codes will help the RBI identify the type of transaction being carried out.
The overseas clients are now left with the only option of using 'pay for purchases' (goods or services) tab, or
Anuj Nayar, a member of the PayPal communications team, wrote on the official PayPal blog:u00a0 "I'm pleased to let the thousands of businesses who rely on PayPal to sell their goods and services around the world know that we've resumed local bank withdrawals in India."
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