Paypal India Withdrawal Problem Solved with Purpose Code

2 March 2010 By Shashank

PayPal  India

Indian webmasters and freelancers alike had a hard time facing the sudden blockage to funds withdrawal forced by PayPal last month, its only now that PayPal has issued clear instructions on how to withdraw PayPal funds to India, In this post by Farhad Irani at the official PayPal blog, he has explained that the new directives issued to them by RBI requires all Indian PayPal users to input a Purpose Code while withdrawing funds to Indian Banks,  this code is required to identify the nature of cross-border merchant transactions.

Which Purpose Code to use?

Please refer to the following table to know your Purpose Code

Purpose Code Category Description Who should be using it, find your business here
P0104 Export of Goods Value of export bills negotiated / purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.) eBay merchants, jewellers, sellers of collectibles and other such products through eBay and your own websites / catalogues globally.

Please note: Cross border shipment of goods and services for which you file GR / PP / SOFTEX / EC forms only should be processed with this code.

If you have any questions, please check with your bank to help you with the same.

P0301 Travel , Hospitality and Tours Purchases towards travel (Includes purchases of foreign TCs, currency notes etc over the counter, by hotels, hospitals, Emporiums, Educational institutions etc. as well as amount received by TT/SWIFT transfers or debit to Non-Resident account). Online Travel Agents, Airlines, Railways, Buses, Taxicab Services, Hotels, B&Bs and other travel / tourism related sales through PayPal



Information Technology Computer Information Services. Hardware / Software / Data Processing consultancy/implementation If you are an independent / freelance coder / hardware consultant or data processing service provider, or a small business providing such services for websites globally, please use these codes.

For all IT related consulting services where you know you do not need to file a SOFTEX form, please use the appropriate code. 801 for hardware consulting, 802 for software consulting and 803 for data management and processing consulting services



Content and Journalism News Agency and Subscription services If you are a freelance journalist / blogger / news aggregator please use this purpose code for withdrawals.

If you are a newspaper or an online news aggregator for websites overseas, please use the appropriate code from these two. 805 if you a freelance journalist, and 806 if you are a newspaper / aggregator

P0902 Licensing of creative works Receipts for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films) Artists, designers, other creative service providers where the principal revenue mode is license fees, please use this code.

If you produce creative works which you license out for entities overseas, licensing revenues may be classified under this purpose code

P1004 Other services Legal Services If you are providing outsourced law related services
P1005 Accounting, auditing, book keeping and tax consulting services For accounting consulting and accounting services
P1006 Business and management consultancy and public relations services Management / brand consulting and management services can be exported with this purpose code
P1007 Advertising, trade fair, market research and public opinion polling services Marketing/ brand consulting / logo design / event management services can be exported with this purpose code
P1008 Research & Development services If you are an outsourced research and development services provider based in India, receipts can be inwarded through this purpose code
P1009 Architectural, engineering and other technical services Any other technical services such as eTutoring, education and other services you render over the internet via web conferencing tools or similar channels, please use this code for your withdrawals


Purpose Code for Bloggers and Freelancers

It seems Purpose Code P0805 and P0806 are best suited for freelances, bloggers and journalists.

If you have funds stuck in Paypal, you will be able to withdraw them starting on March 3, 2010.

Check Out Related Posts:

  1. Withdraw Paypal Money Directly To Indian Bank Account
  2. Sony Vaio Z series Laptops Unveiled in India
  3. Free Demonoid Account Registration 2009 Hurry!! [ No Invitation Code Needed]
  4. Latest Nokia 6212 Classic Mobile with NFC Technology
  5. Blackberry Bold Arrives in India
Internet 3 comments


Increase your paypal balance:

if you want to get extra money to your paypal account, simply check it
based on chain principle lets multiply pays you extra for your actual paypal payments.

A and B payed each $10 to me. i transfer $15 to A only. so A is profited.
again i receive $10 from C and pays $15 to B………like wise the chain continues and everyone will get extra repayments.

the service is really launched at and the blog is very trusty.

Naveen R says:

can we transfer from one paypal account to another


  1. Attention Indian Paypal Users
Comments are closed.
Previous Post
Next Post