Is it necessary to add the PURPOSE CODE in Paypal?
December 15, 2012 1:00am CST
Hello, In my Paypal account, there is a notification displayed daily on my account displaying " In accordance with Indian regulations, you will need to add a purpose code in order to receive payments and withdraw funds" Since I linked my bank account directly with my Paypal account, I was wondering what will happen if I don't add that purpose code, as I got all of your opinions in earlier discussions that linking the bank account to the Paypal account will make the money to move directly to my bank account from my Paypal account. I need some suggestions, please. Thank you.
1 person likes this
15 Dec 12
Thanks a ton for sharing this discussion. Well in my opinion, u should follow all the instructions as directed by the Pay pal otherwise it will create hindrance in getting payments from it. Even i had forgot to provide a purpose code initially and after they intimated me, i went back to my account and provided that code and it is generally a security code that will help in the smooth transaction of payments so u should do it as soon as possible. What say?
15 Dec 12
It is employed by papal as per the rules by reserve bank of india.The history behind this decision is that,long back,many people used their papal accounts to keep all their black money to escape the tax.They would withdraw to their banks when needed.On seeing this,banks insisted to register Customer's pan number so that income tax department is aware of the money in banks and cannot keep black money.Now people started to use money from papal directly as it is accepted by many online purchases.To prevent this,RBI made it compulsory register our pan cards to papal also.By choosing the source of income in papal.the income tax can get information about the type of work involved,as some jobs like selling products involves higher tax..