Paypal India account holders can now withdraw money to Indian banks. When you try to withdraw money to a bank account, it ask to declare a purpose for the proceeds received through PayPal. This is a great move as the online income earners need to comply to government rules and regulations while making money.

The purpose of withdrawal of money needs to be declared only when you withdraw funds. The following are the available options now and they have a description of the same.

In addition, each PayPal India account holder needs to provide the following information to keep your PayPal account active:

1. Your Mobile phone number
2. Your PAN Number

At the moment you can skip this screen but they can made it mandatory at any time. The mobile number will be used for clarification by banks as how the money was earned and the Income Tax PAN (Personal Account Number) id will be used to track your income records and financial transactions.

If you don’t have a PAN card you can apply for a PAN card online and it costs Rs 94 at present. You need an ID proof and address proof to get a PAN card.

The Reserve Bank of India (RBI) has mandated that from 1st Aug 2009 all online credit card transactions require an extra level of verification. Your credit card issuing banks are therefore, implementing a “Verified by VISA” or “MasterCard SecureCode” password.

You will need this password to continue transacting online from 1st Aug 2009.

What is the “Verified by VISA”/”MasterCard SecureCode”?

This is the password that your credit card issuing Bank provides. For example – ICICI Bank, HDFC Bank, Citibank, HSBC Bank, Axis Bank, SBI etc. This password is the additional layer of security for all your online transactions. Register for your “Verified by VISA” or “MasterCard SecureCode” password with your credit card issuing bank before 1st Aug 2009.

How it works?

Benefits of “Verified by VISA”/”MasterCard SecureCode”

Even if you lose / misplace your credit card it cannot be misused online as the password is not present on the card.