Withdraw funds from PayPal to Indian banks

By | January 25, 2009

paypalThis post is to answer all the blog comments asking how to withdraw money from PayPal to Indian banks.


PayPal allows you to withdraw money directly into your Indian bank account for free if you are withdrawing more than Rs.7,000. If it is less, it charges Rs. 50 as fee. This is the better way than requesting cheque because it takes few weeks to deliver, a month for realization, and more over PayPal charges $5 fee and your bank charges approximately Rs.150 to Rs. 250 for clearing international cheque.

Follow these steps to withdraw funds from PayPal to Indian banks:

Log into PayPal and click the link “Withdraw” Then, select the option “Withdraw funds to your bank account” and click “Add Bank Account” It will ask First name, Last name, Bank Name, IFSC code, and Account Number. The thing in question here is IFSC code.

IFSC is Indian Financial System Code assigned by Reserve Bank of India (RBI) for every bank branch for easiness in transferring funds and communication. If you have an ICICI account, you can see the IFSC code printed on the cheque book itself. Get the list of participating banks and its branch codes in an xls sheet by clicking here. This is the link to the main listing page where you can find the updated list in case if it is updated by RBI and you are not able to get the XLS sheet. IFSC code is an 11-digit character and numeric code and looks like BKID0003322, which is an IFSC code for Bank of India, Gandhigram branch in Gujarat State. 3322 is the branch code and BKID is the bank code. Enter the appropriate IFSC code for your branch followed by your account number. You can also confirm it with your bank branch. After that you can select the amount to withdraw into your bank account, which readily converted into Indian rupees and showed to proceed with withdrawal.

Once you are done, you will get the money directly into your bank account in three to seven business days. I have tried to transfer the money to an ICICI account and it took only three days for getting the money. Still have questions? Post in comments.


225 thoughts on “Withdraw funds from PayPal to Indian banks

  1. Hari

    What kind of HDFC account should I have to apply for Netsafe? Whats the minimum balance to create an account with HDFC. I am creatingaccount with HDFC just for this netsafe feature. In such case which kind of account is advisable for me? A saviings account?? or I’d like any account which has got minimum balance.. >> @Naveen.. please clarify

    regards,
    Sri Hari

    Reply
    1. Naveen Post author

      You just need a savings account, but you need to maintain Rs. 5000 quarterly average balance (QAB). QAB is Rs. 5000 in any private bank these days.

      Reply
  2. Vaibhav

    I just reached here by some googling.
    hope here i may find solution to my problem
    my problem is i have some dollars in my paypal and i wish to withdraw them.
    but problem is paypal is not showing my middle name while my bank account SBI has frst name middle name and last name.
    so can they consider it name mismatch. please help, any one withdrew in such case?
    my paypal is not verified yet.not linked to any cc

    Reply
  3. Hari

    @Naveen

    There is a “No frills Account” in HDFC where we do not need to have any balance. i.e. zero balance. Any idea of this? Why a savings account when we got this? Please clarify!

    Thanks in advance!

    Reply
    1. Naveen Post author

      Banks have to offer “No Frills Account” (NFA) where minimum balance is zero. It is an RBI rule to make the banking services available to lower-income group. But, this account has lot of restrictions like limited number of transactions and limited amount of money flow. If the total amount of transactions reach more than 50k per year (I think…I am not sure about the limit), it will automatically made normal savings account. If you can afford a 5k QAB, go for it. Otherwise, take NFA account.

      Reply
  4. dunz

    Dear Naveen,
    I tried to link my international debit card but it is not happening im getting a error like “That card number is already registered with PayPal. Please enter a different number.” My card is Corp Convenience International debit card. I want to withdraw 1602 USD please guide me how to do it. And how much will amount will paypal deduct?

    Reply
    1. Naveen Post author

      Debit Cards will not work except SBI as mentioned by Mr. Vivek from SBI. You can take HDFC international debit card and then using it you can get a virtual credit card creation facility called “Netsafe Verified by Visa.”

      You can indeed verify Paypal using SBI Gold International Debit Cards (Visa / Mastercard) and SBI Yuva Cards (Visa)

      Reply
  5. dunz

    Thanks Naveen for the very quick reply, One more query can i use my friends SBI debit card to link it?

    Reply
  6. abhi

    can we register paypal ac through andhra bank debit card.
    now am doing online surveys. they ask paypal account. how can i receive that amount other than paypal. if with paypal is andhra bank debit card is enough?

    Reply
    1. Naveen Post author

      You might have not gone through the list of comments. At present only SBI debit cards and virtual credit card using HDFC international debit cards work to verify your Paypal account. Else, you need to get a credit card.

      Reply
    1. Naveen Post author

      I think there is no limit. But, don’t keep a huge amount especially in unverified Paypal account.

      Reply
  7. Krishna

    Dear Naveen,

    when I tried to verify my Paypal account with my new International Gold Debit card of SBI one message was showing as……..”This credit card has been denied by the bank that issued your credit card. For details on why your card was denied, please contact your credit card issuer’s customer service department. Or, you may want to try adding a different credit card.”
    can you just tell me what i can do to process my verification………..
    i will be very thankful to you……..

    with regards,
    Krishna

    Reply
    1. Naveen Post author

      Unfortunately, I never used it. I recommended getting either a real credit card or getting a virtual credit card using HDFC international debit card. One of the SBI staff is following this thread, so hope he will answer your question.

      Reply
  8. Vivek Godgift J

    Hi Krishna,

    Do Elaborate your problem to email : helponline[at]statebank.org.in, will reply with a solution.

    Regards,
    Vivek Godgift J
    State Bank of India

    Reply
  9. Vishnu

    hey i would like to know if its safe to fill in our details such as address, phone number etc. @ hits4pay! thanks!

    Reply
  10. Mukim

    Hi Naveen ,
    i wants to ask that is waoindia.com & hitzmagic.com a scam site ??
    I searched in Google but almost every 1 got the payment but i would like u to answer my wuestion

    Reply
  11. dunz

    Dear Naveen,
    The withdrawal from Paypal to my INDIAN BANK (please dont confuse my bank’s name is INDIAN BANK) is it possible? I have Global Debit Card (MASTERCARD) will it work???

    Reply
    1. Naveen Post author

      All major banks will work, but you can’t verify your Paypal account with debit card of Indian Bank. Get a credit card and verify.

      Reply
  12. Rajesh

    Hi Naveen,
    I have a bank account in icici bank with the name rajesh kumar sharma, my bank & paypal a/c names are same but when i linking my bank a/c with paypal my last name listing first in paypal bank a/c which i unable to edit there. Could i withdraw money into my bank a/c or will they reject this transaction because of my last name coming first.

    Reply
    1. Naveen Post author

      First withdraw a hundred or so and see what happens. If it works, you can start withdrawing the rest.

      Reply
  13. Ashwin

    Whats the minimum amount you can withdraw from paypal???
    can I withdraw money without verifying account??
    After I verify my account.. will it be safe??… They wont freeze it right??

    Reply
    1. Naveen Post author

      There is no minimum it seems. If you want to withdraw a dollar, you need to withdraw at least two dollars because there is a charge of Rs.50 for amount less than 7k. I don’t know whether you can withdraw from unverified Paypal or not. Try yourself and let me know..of course test with a dollar. They can freeze any account with suspected activities regardless of verified and unverified.

      Reply
  14. Ashwin

    recently I Tried linking my moms standard chartered debit card affiliated to visa to my paypal account… but it never accepted.. do you know why???

    Reply
    1. Naveen Post author

      Debit card never works except selected SBI debit cards. Read all the comments and you will find comments related to SBI debit card.

      Reply
  15. Ashwin

    credit cards are sure to work right???

    ok suppose i verify paypal with a standard chartered credit card .. Then can i transfer the money to a sbi account??

    Reply
  16. kamal

    dear naveen, thanks for the detailed discription, abt how to withdraw money from paypal. i have a question to be cleared, can i send money to multiple accounts at different times, coz some times i will buy LR funds or i’ll have to transfer to my friends acc from my paypal acc. as i’m a trader in ebay, i receive all my payments via paypal only, so, plz, clear my issue…Thanks in advance…

    Reply
    1. Naveen Post author

      There is mass pay facility for business accounts to send payments to multiple accounts at the same time. I think scheduling is not possible. If you have business account, you can explore what options they have provided. Go to Paypal and see what facilities are available with business account.

      Reply
  17. bhakti

    I verified my credit card in paypal a/c but now i am trying to send money the message is coming ” Sorry, your payment won’t go through. To make it work, you’ll need to add money to your account and pay with your PayPal balance”
    Can u tell me how to add money in paypal a/c from the verified credit card
    Please help me
    thankyou

    Reply
    1. Naveen Post author

      I think you can’t deposit money from credit card into your Paypal. US a/c holders can deposit from their bank account into Paypal. Use request money feature in Paypal to send request to your email. Then follow the link in the mail and pay by your credit card. I am not sure if it allows to deposit money from your credit card. But, there is a huge fee to deposit money from credit card and there is a limit on credit card transactions per year, I think around 5 transactions allowed.

      Reply
  18. kritika sotta

    hi naveen,
    i have my bank account in bank of baroda.can i withdraw money through paypal to my bank of baroda account?

    Reply
  19. prince

    hello,
    pls clarify my doubt. i ve registered in paypal and i have added my bank account number and all the particulars. my question is can i transfer the amount to my bank account without linking and confirming the debit or credit card? is it possible?pls do reply to my mail id. my mail id is princeroy11@gmail.com

    Reply
    1. Naveen Post author

      I never tried that and have no idea. Proceed with just withdrawing 100 bucks and see. If it works, then you can withdraw full money.

      Reply
  20. dunz

    Hi Navin,
    I withdrew 100 usd on 16th, im an unverified user and having account in corporation bank. Also i provided the IFSC. How long it normally takes to get credited to my bank account? Will paypal send any mails once the fund credited to bank?

    Reply
  21. Vishnu

    hey naveen can you just tell me how can i put money in my paypal account so that i use to shop items from ebay usa? i have applied for a HDFC Debit card and will be using it.

    Reply
  22. manjunath

    I was wondering if I could use Paypal and successfully buy things online and receive money online without having it linked and having my credit card confirmed.
    I don’t plan in sending money to my credit card I would just like to shop online, will Paypal still work and will I still be able to buy and receive money online?

    Reply
  23. Akshay

    Can you tell me that if i opened my paypal account it will charge me if i will not use it?

    Reply
  24. kavi arasu

    My full name is KAVI ARASU but when i am trying to add my bank account for withdraw funds my first name goes last and last name comes firsr it means my name looks like this ARASU KAVI….it leads any problem for withdrawing funds?
    Name comes reverse order……………

    Reply
    1. Naveen Post author

      I think you might have entered name wrongly while registering. Try to ask the paypal support by mailing them. Log into your paypal account and click here to directly go to the contact page.

      Reply
  25. Guru

    Hi Naveen,
    I wanted to purchase goods from US based firm. They requested me to send money via paypal. But paypal does not allow “send money” transaction even though I have added and verified an international credit card. It says “Sorry, your payment won’t go through. To make it work, you’ll need to add money to your account and pay with your PayPal balance”

    Any solution…,please help

    Reply
    1. Naveen Post author

      Yes…you need to get funds into your account. You can fill it with the card that is not on the file. Just use your friends. Send a request money mail to your friend and ask him to pay the amount. Paypal accepts only 5 of such requests per year if you have basic free account. You can pay paypal bill using your credit card. Ask the company to send a money request to your email and you can pay money into their paypal account using your credit card.

      Reply
  26. Akshay

    Hi,
    I want to ask that

    1) Will paypal charged for my SBi YUVA Debit Card verification ?

    2) On paypal Account they only asked for First Name and last name bu tin bank account it is First name Father’s Name Last Name will it cause problem while wihdrawning money ?

    3) Whether Paypal is safe for all those transctions ?

    4) Can i withdrawn my money in paypal account to my bank account without debit/credit card verification?

    Please give me Guidance………………

    Thanks !

    Reply
  27. Anirudh K. Mahant

    Recent issues with PayPal withdrawals to Indian Banks & more over payments just randomly being reversed back to the senders will have a deep impact on PayPal’s reputation. It raises so many questions like (THIS MIGHT CONTAIN SPOILERS):

    A) Should we trust PayPal in future?
    ANS: ABSOLUTELY NO

    B) Are they really concerned about our Money?
    ANS: ABSOLUTELY NO, After a long period of two weeks we receive an apology letter stating that “We are sorry we goofed up opps!”? and stuff like “Your money just got sacked since this is nothing serious to us we are just doing a drill of playing a game with your hard earned money”?

    C) Is RBI responsible for this?
    ANS: UNQUESTIONABLY MAYBE, So, Question is why this is happening in India and nowhere else? Question is why we are being kept behind curtains and dark? Question is why Moneybookers and other Payment systems are working but PayPal is not? you just want to exclude the RBI out of this since they are least concerned with us. Everyone failed here! RBI off course you cant expect them to give you a comforting truth so a comforting lie should suffice you! And PayPal Ow man no shit a multinational company failing to inform and notify of an issue of this magnitude. That was an AWESOME combination of pure frustrating, destroying trust & spreading chaos.

    D) So what does PayPal tell us now?
    ANS: “We are sorry, but your valuable to us so please give us another opportunity to goof up and play some more engaging games with your money” and “We just love to make more profits by giving you a pathetic exchange rate”

    D) What now?
    ANS: DTA (Don’t Trust Anyone) Get your sleeves up against them and find your own ways to get paid over any other medium that serves better, communicates better and keep them in plenty. If one fails other should work out.

    Ive let all my clients know about this issue and advised them (in advance unlike PayPal) to switch over to some other Payment system which is reliable, responsible and does the main thing “ACTION” at PAR. The truth will probably be dead and berried RIP about what happened because the shame and disgust they bring upon themselves is apocalyptic now.

    Reply
  28. ramesh

    Hi,
    I want to withdraw money from paypal to bank account in India. Problem is that my name on my bank pass book is “Ramesh Ram Gupta” but when i withdraw on paypal it shows “Ramesh Gupta” on the last verify details page. Should i continue? Also they are showing account as Current account, but i have a saving account…..Please help…
    Thanks a lot….

    Reply
    1. Naveen Post author

      When you add a bank account, it allow to add the first name, so you can enter “Ramesh Ram” in the first field, so it can show the full name same as your bank account. Also, there is no field like Saving or Current account. You just need to enter Bank Name, A/c No, and IFSC Code.

      Reply
  29. wowrameezali

    dear Naveen,
    As i can see that you are still here and answering everyone.
    Kindly can you give me some solution about Online banking For foreigners,
    Simply,
    I am not living in India Honestly. I am From Pakistan, I have a Paypal Account which is Unverified Due to the TOC of Paypal and Pak Government.
    Now i want to Create an Account in Any Indian Bank which have flexibility to approved my Account and they allow me to link my Account with Paypal intention of Getting verified.
    But the Question is that which one allows me. I also have Account in Pakistani Bank Can I transfer My Money after Opening An account in India,(Indian Bank to Pakistani Bank).
    kindly suggest me some.

    Reply
    1. Naveen Post author

      No bank here allows us to create a bank account without proper address and ID proof. You need to be either Indian or a Non-Resident Indian with all address and ID proofs. I heard that Paypal is freezing the accounts when it detects that the user is logging from the country it does not support. Ask the Paypal support about it before losing your valuable money. As an alternative to Paypal, use Alert Pay (http://www.alertpay.com). I have checked and found that it allows your country.

      Reply
  30. Saleem Khazi

    Hello Naveen,

    Its Saleem Khazi here from Karnataka. I have an Andhra Bank Visa Electron Debit Card. I am trying to get linked my debit card to paypal, but its not taking it as it is asking for CSC(Card Security Code). my card doesnt has that code. But on the card its clearly mentioned that its an International card. I have all ready added the bank account information in paypal. Now my question is by just adding the bank account information with IFS code and all i will get the amount from paypal or not? please reply as soon as possible.

    Thanking You,

    Saleem Khazi

    Reply
    1. Naveen Post author

      You can withdraw funds by adding the account. You can see a 3-digit code at the back side of the card. Every card has those 3 digits. I am not sure whether it accepts debit card. Just search in comments where it says some type of SBI debit card works.

      Reply
  31. Ravi

    Hi Naveen,

    I have andhra bank account. yesterday i send with draw money request from paypal. But it is asking below one…
    what is the 2 deposit amount. I can’t understand. what is the two deposits of andhra bank. Please help me.

    Step 3: Log in to your PayPal account. Click on the “Set up Bank Funding” link in the “Activate Account” box and enter the two deposit amounts.

    Reply
    1. Naveen Post author

      I don’t know this as when I added the bank, this process was not there. I read on the internet that when you add a bank account, it will make a small transactions in your account and asks to verify with the amount they deposited. So, you will be getting 2 small deposits (few rupees) into your account. Go to ATM and take a mini transaction slip and see if there are any transactions in small amounts. Enter those 2 small deposits into the box you are looking it. If they do not appear, mail the Paypal customer service.

      Reply
  32. saif tauheed

    hi i linked my bank account on 24th of december and today on the 29th i got a message from paypal –
    Please complete security steps 2 and 3 to be able to start funding payments with your bank account.
    How To Set up Bank Funding

    PayPal has made two small deposits into your bank account. These deposits should now be in your bank account.

    Step 1: Completed

    Step 2: Contact your bank to find out the exact amounts of the two deposits that PayPal sent to your bank account.

    Step 3: Log in to your PayPal account. Click on the “Set up Bank Funding” link in the “Activate Account” box and enter the two deposit amounts.

    NOw my question is will it take 2-3 more days two show up? or it has already been depsited?

    Reply
  33. Vinay

    Thank you Naveen for such a great information. Can you tell me what is the cost of virtual credit card ?

    Reply
  34. Dan

    Hi Naveen, Your doing a great job. Your inputs really help! Are you aware of Neteller? If yes can you please tell me the specifications and does it really work in India? Can we deposit straight through our debit cards? How would be the withdrawal process?

    Thanks in advance…
    Dan

    Reply
  35. Dan

    Thanks Naveen. One more thing about Paypal.. What’s with the new rules from RBI? Has it made the transacting more hassled?

    Reply
    1. Naveen Post author

      You can’t use the Paypal amount to buy anything. You need to draw the amount into your bank. Also, you need to specify the purpose of using your Paypal account.

      Reply
  36. Sachin Kulkarni

    Hi,
    It is really helpful topic to me. Recently I have decided to work online with http://www.elance.com. I need to activate account which can be used to withdraw money USD to my account with Axis bak in INR. I came to know about SWIFT code at that moment. But I could not able to find what is swift code of my branch.
    Can you please help me to find out SWIFT codes of my axis bank branch?
    Also please rate the website http://www.elance.com for me. Is there any more site available like http://www.elance.com?
    Is it safe to work with such sites?
    Your response is highly appreciated.
    Thanks
    Sachin

    Reply
      1. Sachin Kulkarni

        Hi,
        Thanks for your quick reply.
        If you find some time, please write on online job sites and its working techniques topic in your blog.
        It will be very helpful topic to lot of people.

        Reply
  37. Usha

    Hi Naveen ,
    Your page has been really helpful for me in learning about
    Paypal . Recently I have tried adding my debit card from Bank of Baroda
    to my Paypal account , of course it has failed . Can you suggest an alternative to Paypal other than HDFC virtual card , where I can manage with my Bank
    of Baroda account and debit card ? Can I use Alertpay and is it safe ?

    Regards,
    Usha P

    Reply
    1. Naveen Post author

      See if you can purchase a Prepaid Visa Card (Gift Card) available from SBI, HDFC, ICICI, and many more banks. Get the lowest amount one and use it. Add your Baroda A/c to withdraw funds. Recently “Auto Withdraw” feature is added where PayPal automatically sends the amount to your bank as soon as funds are deposited into your PayPal.

      Reply
      1. Usha

        Thank you Naveen for your response . Will such a card be accepted like
        a credit card , for example at Amazon or eBay , where my Bank of Baroda debit card was not accepted ? As for Paypal , I cannot use it with my Bank of Baroda account , debit card or credit card as the Bank does not want to have any transactions with Paypal . Even at Amazon you cannot use Paypal. Both have their own reasons probably . Now even I am having second thoughts about Paypal after reading your blog.

        Regards,
        Usha

        Reply
        1. Usha

          I also saw a line at Paypal , that currently there is no verification for Indian
          banks . Even though I could add my bank account , the two small deposits
          were never made . So I could not verify my account .

          Reply
        2. Naveen Post author

          Yes…it can be used as a prepaid credit card to purchase at any online store. Get a low denomination one. If PayPal is not accepting it, you can use it at a grocery store or mall to purchase goods. To withdraw funds into your bank, there is no need of verification. You need to provide bank details correct. If PayPal tries to pay the amount and your bank details won’t match with it and bank returns the payment, there is a charge of Rs.250 levied by PayPal.

          Reply
          1. Usha

            I am not sure if Bank of Baroda will allow any transactions with Paypal .
            They said they cannot . I do not need to withdraw any funds right now.
            For the present I shall try and get a prepaid credit card as you have
            advised . Thank you ,

            Regards,
            Usha

  38. Indranil Mukherjee

    Hi, i created a paypal account and confrmed the same with my Kotak Mahindra Bank account. I received two small deposits to confirm my bank account. It was confirmed successfully, however i received some funds from paypal and i transferred it to my bank account. But, i still did not receive the funds yet. I contacted Kotak Mahindra bank and they told that they do not hav e a direct tie up with Paypal. I am very much confused about it, as Paypal as a merchant has already deposited the funds to my bank account but the bank did not receive it.. What can i do about it ?? should i wait some more time as it has already been 5 days almost?? please help..

    Reply
    1. Naveen Post author

      Have you updated the bank details correct? Check once again. As there were festival holidays, I think it will take two or three more days.

      Reply
  39. Indranil Mukherjee

    Thank you for replying Naveen. Yes, i have entered the information correctly. and i have also verified the bank account because i received two small deposits from Paypal. I entered the bank account details from my cheque itself, using my account number and IFSC number. i contacted Kotak mahindra bank as well, however did not get any proper help from them. They told that Kotak does not accept payment from Paypal, which is very hard to belief and initially i received two funds as well from Paypal. If Paypal did not support Kotak Mahindra Bank then i should not have received the two initial small balance to confirm the account.. i am very confused and need your help. Please reply as early as possible.
    Thank You,
    Indranil Mukherjee.

    Reply
    1. Naveen Post author

      Every bank will accept PayPal funds. May be your bank branch people are not aware of. You will receive money. Not to worry. If PayPal is unable to deliver the money, funds will return to your account. Just wait few more days.

      Reply
  40. Indranil Mukherjee

    Thanks for replying once again Naveen. I was very much concerned because i did the transfer on 29th of August 2011 and one more on 31st of August. I did not receive the funds for 29th of August, so i am very much worried about it. The Paypal account status says that “Bank Transfer Completed” however i did not receive it. So, i am very much confused. You, tell me, what else should i try or do ?? or shall i wait maximum till Tuesday or what ???? please reply sir.
    Thanks and Regards,
    Indranil Mukherjee

    Reply
    1. Naveen Post author

      Yes..wait for Tuesday and if you don’t see the amount in your bank account, yo can follow up with the PayPal customer service. Don’t worry..you will not lose the money.

      Reply
  41. Indranil Mukherjee

    Thank you so much Naveen. I appretiate your response and reply. I will get back to you as soon as i get a reply from my bank or directly from Paypal.

    Reply
  42. Indranil Mukherjee

    Hi Naveen, I just had a word with Paypal directly. They told me that maximum by 8th of September, the funds should be in. They told that there is no problem with my account neither with my Bank Account with Kotak. So, it might take some time, however it should be resolved. Once it is resolved, will definitely keep you updated. Thanks for all your help and support.
    Thanks and Regards,
    Indranil Mukherjee

    Reply
  43. Indranil Mukherjee

    Hi Naveen, i finally got the amount transferred today. My next job will be to call my bank customer service and inform the same and talk to their manager for providing wrong information.
    Thanks once again.

    Reply
  44. Vinod

    Hi there, I have the same problem as the above. Sent money from paypal to my ICICI bank account on 16th Sept. Still not in there. Bank manager was no help whatsoever…tells me to call paypal and that they can do nothing. Paypal only tells me to go to the bank. Similar story to that of the above, however I have still not recieved my money. 4 seperate transaction all for over a total of 50,000 INR. Now I don’t understand what else I can do??

    Is there anyone that this has happened to in the past?

    Reply
  45. Saif

    paypal has finnaly increased the limit for export related payment to 3000$

    Reply
  46. Mayank

    The latest feature of Paypal automatically withdraws all the balance (if its greater than 10$) to your bank account, provided you have confirmed it. And for new accounts, Paypal wont let you create new accounts unless you have a PAN card Bank Account ready.

    Reply

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