In an unprecedented move in January, the online payment processing services were restricted by PayPal in India. The ban on services by Pay Pal also included prohibition of overall accounting on personal payments to and from India. Adding to its action PayPal also suspended all bank withdrawals to PayPal to meet out the requirements set by Reserve Bank of India (RBI). This influenced over the earning scope for the people who sail out there services from India online or they have earnings from their blogs.

However, things are been settled down and from today, March 3, 2010 PayPal has allowed Indian users to withdraw funds to their bank accounts. According to, Farhad Irani, head of PayPal’s Asia Pacific told that the services would resume from March 3rd and the Indian users will have to fill out their “Purpose Code” using “Withdraw Options”.

As information coming out from the PayPal purpose code is something which helps Indian banks to furnish information that is required by the RBI to identify the nature of the cross border transaction. This has made PayPal transactions bit complicated and one would have to follow RBI directives as to withdraw money from their accounts.

Purpose code happens to be different from categories to categories and services offered. Below are some purpose codes that are needed for different business purposes.

•P0101 and P0104: This code is for eBay merchants, jewelers, sellers of collectibles and other such products through eBay and your own websites or catalogues globally.

•P0301: This code is for Online Travel Agents, Airlines, Railways, Buses, Taxicab Services, Hotels, B&BS and other travel or tourism related salesperson through PayPal.

•P0801, P0802 and P0803: These codes are for respective freelance coder, hardware consultant or data processing service provider, or a small business providing companies that provide services, globally.

•P0805 and P0806: These codes are for a freelance journalist, blogger and news aggregator. Code 805 is for freelance journalist or blogger and 806 for newspaper or new aggregator.

•P0902: This code is for artists, designers, other creative service providers where the principal revenue mode is license fees.

•P1004: This code is outsourcers of law related services
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•P1005: This code is for accounting consults and accounting services provider.

•P1006: This code is for Management and brand consulting and management services.

•P1007: This code is for Marketing/ brand consulting, logo design and event management services.

•P1008: This code is for outsourced research and development services providers.

•P1009: This code is for technical services such as eTutoring, education and other services provided over the internet via web conferencing tools or similar channels.