paypal-logoIf you an Indian citizen and you surf internet a lot or even thinking about purchasing something from an foreign or international website, you have probably seen that almost every merchants around the world uses PayPal as there payment gateway. No matter what is the location of the business almost 98% merchants uses PayPal. The reason behind this is PayPal is free of cost and many people has working paypal account as it is around in the market for a long time. But as “Pay with PayPal” is like the easiest payment method in most of the continent around the world, in case of India, “Pay with PayPal” almost means you can’t purchase this product, at least for most of the general users. Let me explain why Idian face this issue and in next 7 minutes you will understand why you face this and how to get rid of this issue.

Why PayPal fails in India?

Well the main and primary reason behind that is because of Indian Central Bank or more precisely Reserve Bank of India (RBI). RBI has some set of rules which they have forced on PayPal so that they cannot operate in India like the way they operate in most of the places in the world. Due to this special set of rules PayPal is unable to provide their normal service to the Indians.

Why RBI does this?

RBI believes, it is one of the finest financial institution in the world and moreover I think RBI wants to show the world that they are different from the other international financial institutions. But as per RBI they have set forth these rules to protect Indians from money laundering issues (which still occurs like Sardha Scam in West Bengal), to be ensured that no one can evade the Tax and specially for security reasons.

PayPal India History

When PayPal first came to India to they have faced many banking related issues with RBI and Indian Government. As per RBI PayPal was not eligible to do business in India as per the term they do business internationally. RBI has rejected PayPal business approval by showing that PayPal does not hold banking license. As per RBI and banking rules in India, an authority or institution is only allowed to HOLD money to them if and only if they hold Indian banking license, which PayPal don’t. After a lot of requests and hassle RBI and Indian government give some terms to PayPal by saying that if they want to do business in India they have to follow these terms and these can’t be violated by any reason. The terms were

  • PayPal can’t hold anyone’s money for more than 24hrs.
  • No one will be able to add funds in PayPal India account.
  • All amount needs to be auto withdrawal after 24hrs.
  • Every Indian user needs to provide PAN no. in their account.
  • More than $10,000 in single transaction is not allowed.
  • Can be used only for receiving or paying to non-Indian users.
  • Inter-country payment within India are not allowed.
  • Only Debit/Credit cards allowed for paying through PayPal.
  • No use can use their received PayPal balance to purchase something else using PayPal. Payments are only allowed through cards.

Due to these terms, PayPal has to disable most of their functionality for Indian users. Because if they didn’t do that, then they were never be allowed to do business here in India. In fact they money received by all PayPal Indian users has been auto withdrawal to their respective back account after 24hrs. from PayPal’s Indian bank account which is maintained by CITI Bank India.

What about paying through PayPal?

After RBI has introduces 2 layer of authentication in India, most Indian debit and credit card has been restricted to use only through those websites which allow 2 layer of authentication, first layer is proper card information and CVV code and the second layer is 3D Secure Pin or Verified by Visa code, which has been generated by the card issuing authorities to cope up with the government rules.

Now this is great for general Indians who never even thought about doing international transactions and only make purchase within India using Indian sites like flipkart, snapdeal etc. These websites uses Indian payment gateway which allows 2 layer of authentication, but most of the International payment gateway be it PayPal or Google Wallet etc. allows normal 1 tire authentication system.

Now this is the place where the collision happens. If you try to purchase international goods from an international website using international payment gateway but provide Indian card which only authenticate payment when the payment gateway has 2 layer of authentication, you will almost become mad just to understand why your card is not working.

Is 2 layer of authentication really more secure? It’s not like that. It’s more like keeping money in a wallet because of it is more secure. 😀 You see you can keep money in your pocket too if you, but govt. has strictly rules to use wallet. Infact there is a good reason behind that too. Most of the people in India don’t even have a bank account and those who have doesn’t have this much knowledge about international transactions and security of their cards.

Like do not to share card number, expiry date, CVV code, ATM Pin, 3D Secure Pin or any kind of password with anyone except himself. So, they easily became victim of cyber theft. So it is good for those knowledge less people.

So, what’s the solution then?

In the banking race there are few banks who does allow international usage of their card, if you place a custom request to them. After you place the request, these banks removes the barrier of your card which is not allowing it to be used internationally.

I’ve written a post about PayPal and Google Wallet Indian debit cards support especially about the banks which allow international cross currency transaction. So visit that post to learn more about those bank and their cards.

Can’t we use virtual cards?

Well, this is one of the common thing you might heard in most of the blogs out there and they might suggest you to use Neteller or Entropay cards for doing international transaction. But here is the catch and the reason why I don’t like them and don’t suggest anyone to use them.

First of all these virtual card companies have a minimum upload amount. Let’s say it is 20$. Then if you want to purchase something which is worth 5$, you have to first upload 20$ in your virtual card to make it work. At the time of payment you will be charged for the currency conversion rate (INR -> USD) too. Now when you try to pay 5$ you find out they have again charged currency conversion rate on your virtual card if the base currency of the site in EURO. Now after paying 5$ rest of the amount will stay with that card unless you purchase anything else. Also you won’t get interest on this card amount.

Now if you world have used actual physical card to pay the invoice, you have charged for currency conversion once and also it only take the amount listed in the invoice. Rest amount will stay with you bank and you get interest on it.

Secondly most of the popular merchants has stopped allowing virtual cards in their payment gateway and only allowing actual physical card. So in future, your virtual card might not work anymore.


Though we have so many banking restrictions to follow, still there is always a way out to get what you want. It’s up to you if you want to get it or not. So, for now on, stop searching for tricks about how to do international transactions and read this article about PayPal and Google Wallet Indian debit cards support to know more about the cards that allow international cross currency transaction.


What do you feel about these RBI rules? Do you really feel that these rules actually keeping us safe or they are doing some financial experiments with the citizens? What is your view about Indian banking system stopping international payments? Let me know in the comment section below.

You can also follow me on twitter @iSaumya or subscribe to my newsletter to always stay updated with my new posts.

Published by Saumya Majumder

Passionate, Hard Worker. Love to develop new things, Singing Songs, playing computer Action Games, tweaking with computer languages, Riding Bikes, Love long driving, love books, web & Photography. You can follow me on twitter @iSaumya


  1. Hey Saumya,
    First of all i wanna thank you your really helping much man and writing the blogs they are so informative thats really good.
    It really hwlps much you know and i salute you for that.
    Thanks brother for providinh so good information.
    God Bless You And Keep It Up.

  2. Hi Saumya,

    Nice Article and very helpful.

    i am working on project and wanted to use Paypal as PG, and getting confused with the response from paypal and other forums, to explain let me share example

    > wanted to start a recipe/newsboard website
    1) for startups (globally, including india)
    2) billed in 1 currency (USD), and
    3) founder (individual currently, later incorporate),
    4) living in India.
    5) Bank A/c in India

    i am fine to use Paypal (only cards, sans email payment options), does this work for me? or i am not able to integrate and receive payments thru Paypal PG?

    your thoughts will be apperciated.

    • Hi, you can use paypal to accept your payments but the only downside is you cannot accept any Indian payments, i.e. no Indian can pay you but you can receive all the international payments. PayPal have a very easy to use API, if you do some Googling you will find many ways to implement it.
      Hope this helps 🙂

      • Thanks for your prompt reply;
        so i guess i will need to use multiple payment gateway or any other payment gateway for now if i need the services for both India and other countries users.

        Appreciated your reply 🙂

  3. In all a good post, some typos though.

  4. Well, PM and others give shakehands to US and RBI dosen’t allow Indians to Transact Internationally Freely?. What a heck Govt Policies are these, which cause inconvinience to us?..

    • Well do you know how many Indians are well literate about banking and banking fraud? If you do a survey and calculate the percentage then you have to put at least 10 – 20 zeros after decimal point. So as most user and banking illiterate so giving them international access will create a huge mess in the economy. Most people doesn’t have the basic idea about how to keep their card banking account, net banking things secure. If any fraud happens they will claim the money to the bank instead of going after the actual authority. This will create a huge problem. On the other hand USA is a knowledge based economy, all people are literate there (not like India). So RBI takes the best decision for the mass banking illiterate people, not for a minority well banking literate people, who knows everything national and international transaction and fraud.

  5. Sir,
    Thank you for so much information on paypal. What purpose code do i have to input in paypal just for buying apps and shopping on ebay.

  6. Nice writeup. However Paypal seems to only work with credit cards and not either credit or debit as mentioned.

    I tried unsuccessfully to link a debit card earlier.

    • Indian debit cards works fine with PayPal. Please read my other post about PayPal where I’ve mentioned the debit cards working with PayPal.

      • Well, it was a while ago when I tried. Both my SBI and KVB cards failed to link. Paypal could’ve updated policy since. I’ve linked my icici debit card after that but icici debit cards work in many places where only credit cards are supposed to work – a pleasant quirk, so imagined debit were a no go.

  7. Hi,

    Very knowledgeable blog for word press users.

    Can you please tell me how did you create your photo image.


    • Thank you Megna for your appreciation. It really means a lot and give me the fuel to do better work. The image you are talking about is actually a hand drawn illustration by one of my friend. I think you can hire some illustrator to do this work for you. 🙂

  8. What should be the purpose code in paypal for buying an item from international ebay?

  9. sir,

    my paypal account was integrated with my pnb account but due to some suspicious log in attempt paypal asked me to change my password on 8th april and also see my info. provided to them . i was able to change my password as well as my PAN card was checked again but now there is no option to add debit card the only option there is to add credit card and i don’t have a credit card as well as my banker is not willing to give me a credit card as i’m a student don’t know what to do as i used to get licencing revenue through paypal

    hope you can help me out

  10. Hi thank you very much for that are right that indians are not like other countries so our government has take good decision. But for few it is sometime important to make transactions with other countries as many softweres are from outside india. As I want a softwere for which I have to pay 2.99$ which can be done only through paypa only. Can you suggest me how can I do that. You can mail me….

  11. I have seen which card can be used. I have an app which is called wild walled from there i earned the money and there is an option to get those money through paypal so can I use this method to pay with paypal? Thank you advance..

    • The money you receive through paypal, cannot be used to purchasing anything. You can only withdraw it into your back account. To pay through PayPal, you need a card that support it.

      • Ok. If I redeem my reward to paypal account but dont transfer it to my bank account and leave it. So it will be there on my paypal account and for that can I purchase?

  12. Hello

    Can we link bank accounts in realtime through private app, does bank permit such things so that I can view my account details without login to my bank website

    • I really did not understand your question. It would be great if your can give sone example about what your are asking and explain your question thoroughly.

      • Can i prepare an app where all my bank accounts will be saved at one place and i can transact through that app, means payments, etc through that app. Does indian banks allow app developers to sync bank clients data to be stored in the app.

        • The short answer is you cant do this. Beside you cant make any transaction just with the bank account details. You either need card details our net banking details. And even if you do that its has a very high security flaws that you are keeping ask you financial details at one place, so if the server gets hacked anytime, all those secure details are compromised. Beside if you store the information like cvv number that’s also against the banking security policy. So in short you cant do that. There are even more security variants which I’ve not mentioned in this comment.

  13. Hi Saumya. You said that “PayPal can’t hold anyone’s money for more than 24hrs.”
    So if I make a payment to some merchant (say A) within these 24hrs, when i have recieved the money from some other merchant (B) , will I be able to make a payment.

  14. Saumya it was a great tech!!! RBI have to remove this restriction because india is now getting HIGH in IT field so this restriction have to be remove for INDIAN users due to which they are facing a lots of trouble in eCommerce!!!

    • RBI will not remove this unless some serious amount of mass movement happen like Net Neutrality. RBI believe that most Indians are financially illiterate and do not have the basic knowledge about online security precaution. So RBI will say that if we remove this restriction, more fraud is going to happen.

  15. This only a story in reality it is red-tape

  16. I have a debit card from icici bank activated for international use. Can i buy bluehost hosting withouy generating 3d secure pin?

  17. I have availed limousine service while in London. He has sent me his bill for about GBP 4000. Can I send payment through Paypal to this Limousine service provider. Do I need to take RBI approval for this payment. I will be giving my CC to Paypal to debit for the payment. Would like to have your views on the same.

  18. Hello Saumya,

    Very great thanks for very nice and useful article.

    We are the worst suferrers of the RBI Rules as it is impossible to send payment to anyone abroad. It requires too much documentation and a long process.

    PayPal is very good option for online abroad payments but it can’t operate in India due our great rules and regulations.

    The only option is PayPal should also allow 2 layer authentication in India and I hope they could add it someday and get us out of this big problem.

    • Hi,
      first of all there are many Indian bank debit cards are there which works perfectly with PayPal and other international gateways. Please check my other arrive on this topic to know more about those cards.
      Secondly PayPal follows the international payment standards, so its not PayPal fault or headech to change there payment gateways just for few countries, besides it’s India who should follow the international payment standards and remove all their disgusting security layers. So don’t blame PayPal, blame Indian rules.

  19. Hi, Good work on article..

    I recently tried EntroPay on SBI Domestic Classic Mastercard and it quite well follows, 2nd step authentication that is the OTP confirmation gets displayed. If such Foreign website can adopt, Paypal can also adopt Indian debit cards…

    Due to the arrival of Rupay cards, International txns would be made out of scope, if Paypal doesn’t adopt itselves…

    • Hi I think you are mistaken that Paypal does not allow Indian Cards. PayPal does allow Indian Card and many people are using it (along with me. More info here:
      It’s the bank who disable the cross currency transaction feature on their end so that Indian card can only pay INR value. It’s not PayPal’s fault. Beside technically speaking, there is huge difference between how entopay works and how PayPal works. Entropay is not a payment gateway, beside they uses other company’s payment gateway to load virtual card on their site, PayPal it self is a payment gateway, there are lot of technical things under the hood but the end story is that its Indian Bank and their disgusting rules for which Indians has to suffer internationally.

  20. “This payment cannot be completed and your account has not been charged”. i’m getting this error when try make a payment. plz help to come out of from this issue..

  21. if i want to make money from online jobs ..can i recieve payments through paypal?

  22. Very informative article. I have a Citibank international debit card which at certain times passes through one tier authentication in case of international payments. Recently I tried to link it to PayPal while attempting to make a purchase. To my horror it kept getting declined and each time I was charged by papal (65 INR APPROX) I’m confused. My Citibank card never fails. Please help

  23. Also…adding to my previous concern…mine is a Citibank EMV chip platinum debit card. Also it is a salary account. Could that be a reason for bias?

    • No, salary account is not the issue. You better contact Citi Bank customer care and ask them to enable cross currency international transaction on your card. I hope they have made some changes on their payment system which is blocking your payments.

  24. You can use CCNow or FastSpring like credit card payment processors which send you money. FastSpring sends money via PayPal so there is not much wait.

    You can sell items using Gumroad and get paid once in 2 weeks. So the wait time is very less and of course people can buy your items using their Credit Cards too. By the way Gumroad is founded by 19 year old Indian.

    For services you can sell them using Freelancer, Elance/Upwork like platform and earn money and they take care of all the hassles. You get paid again via PayPal.

    So there are a lot more options nowadays available and i am sure with more and more demand there will be more and more options coming up which will enable people to accept payments with ease and without hassle.

    But as of now the ones i listed above should be fine.

  25. First of all, thanks @Saumya for your info.

    I had a Kotak account, which was Paypal verified 3 years ago, and paying was no problem. However, I had to close this account, and have tried many debit cards, NONE work with Paypal. Even the newer Axis bank debit card fails.

    I talked to the bank about foreign exchange payments, but to my chagrin, they said even if you wanted to pay US$2, bank would charge US$10 minimum extra, per such payment. Basically a Rip off!

    Yes, one could opt for bank-to-bank payments, but MOST foreign establishments are reluctant, quoting of harrassment from their country’s tax department.

    My Query
    Can’t we approach the grievance redressal department of the RBI? A friendly chartered accountant advised to approach them with big numbers (read signatures). I believe your readers would certainly relish this idea.

    Your inputs?

  26. The rules really only limit legitimate users. Money laundering and other finance crimes will go on like they always have

  27. Hi Saumya, I have a verified & good standing paypal account(I’ve attach my bank account, debit card, PAN no. & my email address used in paypal is verified).

    Question 1: Can I use my paypal account for purchasing on international e-commerce websites such as, which accept paypal as a payment method?

    Question 2: Can I use my paypal balance within the 24hrs of it’s receive, for this payment or other payments?

    Question 3: Can I make payments to non-Indian users with this balance?

  28. Indian Government Sucks.

  29. Whether purchase through PayPal on Amazon is possible

  30. Hello Saumya Sir!
    I have queries related to PayPal.
    Are there possibilities for transfer money from Indian PayPal to direct in other country PayPal? Is PAN card mandatory?

  31. What is the charge of each transaction in paypal within india..

  32. Hello Saumya Sir.
    I have a question.
    Is PAN card compulsory for sending money from India to Philippines via PayPal?
    Also sir can I open again skrill account after delete once?

  33. I guess RBI should force Paypal to use 3D Secure. This will drastically reduce chargebacks. Sadly Paypal 3D secure is only available in UK.

    • I don’t think this is a good idea, because in that case many auto payments like subscriptions will not work, which is going to create a big problem when you are going to purchase subscription from any website or community.

  34. is paypal authorized to do charge backs through indian bank accounts? in the US if there is a refund request if the seller does not pay- they simply take money from their bank account or credit card??? Also have recovery agencies… Forums filled with complaints about scammers who buy and then file chargebacks and paypal 90% works for buyers..if so one is never safe selling through paypal as they can open an issue even if you close your paypal account and take money from your bank account? Whats the policy on charge backs in india? i need to know this before using paypal…can they take money from your bank account/ credit card without authorization in case of a chargeback??

    • Well that’s a good question. One I tried to initiate a refund but it didn’t work on my Indian account. I think for the charge-backs PayPal will deduct the amount from your bank balance or most likely make your paypal balance in negative so in future when you receive new payments it paypal will take it from you to incur the negative balance.

      • that means paypal is authorized to take money from your bank account without your knowledge? are they allowed to do this..isnt this a fraud?

        • PayPal cannot debit money from your bank account. The can only charge you on your card that is attached to it. Besides paypal does not deduct money on their will, except if you have purchased any monthly or yearly subscription from any international seller. Otherwise you have to pay each invoice manually though your paypal account.

  35. Nice post saumyaji, very useful information.
    I have a question, why only paypal has this limitations ??? many members in india using neteller or skrill or entropay for international payments with out pan card and holding funds in it and withdrawing funds whenever they choose to. Why rbi does not impose above limitations ?? I think in my opinion all these e-wallets (neteller, skrill) are licensed in other countries so that rbi cant command it . so why rbi is allowing these wallets for transactions in india ?? Why paypal alone bearing this limitations while at the same time other e-wallets enjoying funds from india ? can u give me lengthy explanation ????
    regards karthik

  36. Saumya, you seem to be a citizen of Paypal and not India. The business anyone does in India has to be done as per rules of Indian Govt and not any companies’ personal policies.

    Can you explain if Mr X has some money from his sales(or service) say $ 1000 in his paypal account and transfers all his money to his relative sitting in Switzerland how does the Govt of India know about outflow of this money that actually belonged to India. Further Mr X might have earned $ 200 profit from his sales, but India will not only loose that $ 1000 but also the tax on profit that Mr X made, if RBI does not impose restriction of auto and compulsory withdrawl of money from paypal.

    We must be a good citizen of India and respect our laws it is for our benefit, we should not allow Paypal or Foreign banks to fool our country.

    Jai Hind !

  37. Im frustrating now because of this RBI Rules. i wont to purchase some WordPress themes and i cant do that. Many online store only have PayPal payment method. that don’t work in India so even i have dollars in PayPal i just cant buy. again i only have visa card so if i tried to buy using that or adding card to PayPal, then card is declined and payment is not complete. …Don’t understand what to do now.

  38. Excellent article saumya.

    I want to use PayPal button to my new site : [LINK REMOVED]

    But PayPal does not allow indian account to pay through PayPal button. Is US clients can pay through PayPal button on my site ?

  39. Any solution when receipt account is domestic, as in india. How do you pay by paypal india account? any solution to this???

  40. Hi sir,

    I would like to know the RBI Mandates for creating a paypal account (for small business)

    Thanks in advance.

  41. I would like to operate on PayPal like how everybody does Internationally. If RBI could let PayPal operate fully, it’d have been so good.

  42. You seem terribly biased against RBI. Let us not forget that it was they who prevented the 2008-09 crisis from hitting India hard. And obviously 2-tier authentication is any day more safer in the age where all your card details can be leaked by any misguided geek with a laptop.

    • It’s not that easy to leak card details especially if you have a chip based card. I never said 2 tier authentication is bad what I said is there should be an option to allow cards to use on those places too where 2 tier authentication is not applicable. Moreover getting card details isn’t that easy (telling you being a tech geek), unless you have physical access to the card or your card got stolen or you used your card on an untrusted site/payment gateway. Almost all payment gateways now-a-days do not store any card related data anywhere in the server or cloud. So, it’s not that easy as you thinks. Most card details that got leaked is either stolen card or the owner is not knowledgeable enough about how to keep the physical access to their card secure.

  43. Hey Saumya ,
    I know some websites that accept payment through paypal in only a few currencies like USD , AUD , GBP but not Indian rupee , Can i use paypal india account to purchase from such sites ?
    Thanks , your articles are really the best .

  44. PayPal only do cross currency payment only. If your card support international cross currency purchase online and you have added your card into PayPal, you can but stuffs using PayPal regardless of it’s currency.

  45. Pyapal is cheapest service provider and cheapest support. There was not any solution about my payments blocked by paypal and showing releasted in paypal. Anyone can help me to get my money because paypal is not replying.

    • I have been using PayPal for more than 5 years now and I have never faced a single issue with them. PayPal also has a call center especially for Indian users: – you should call them and they will definately help you with your problem.

      • No, they did not solve my problem. Even call centre is situated in Malaysia and working team is in USA. They have to do small things to solve my problem. They need to change account name in my cheque or deposit my payment in my accoount and they need to release my payment. But no one is trying to solve my issue.

        • I am not sure if account name can be changed that way or not, as per as I know it is against PayPal’s ToS. If you want a PayPal account with new name, you must need to open a new PayPal account. Also I don’t agree with you regarding the call center location because I’ve personally spoken with them in fluent Hindi besides they have office in Banglore which I’ve visited too. As a last resort I will recommend you to drop a tweet to PayPal India ( @PayPalIN ), they will ask you for your contact details and then someone from the managerial team will contact you and hopefully resolve your issue (if it isn’t against their ToS).

  46. First of all PayPal doesn’t have the option to change account names like that. Besides in case of PayPal India, I have never seen them sending and cheque payment, they always do NEFT payment directly to the added bank account.

    You can use my contact form to send your issue.

    • LOL, If you do not know everything about paypal so do not miss guide users. Paypal changed my account name and removed my account details from paypal. Also, I have cheque issued by paypal.

      • Bro I’ve been receiving payments through PayPal for more than 5 years now and everytime they do NEFT to my account. In fact the same happns to anyone I know (except you). Also as I don’t have access to your account I know no idea what’s going wrong or what did you do. But no matter what, no company changes account name like that. I really have no time to argue with you regarding this, so do whatever you feel right to you.

        • I have been using paypal for 7 years. It is my first experience that paypal doing like this. Exectly paypal do not have right to change my bank account details in paypal account. Now, paypal is not repying my emails and do not want to solve my issue. They are asking to return cheque and they will issue new cheque with correct name. But problem is that they asked me same before but again they issued cheque with incorrect name.

  47. hi please is there is a paypal issue in India? I want to use PayPal to pay for some things i want to buy from India but i am being told buy the seller that there problems re-using PayPal. Please clarify for me if you can. thanks.

    • PayPal can be easily used in India. Please checkout this article where I’ve mentioned which Indian Bank debit cards work in PayPal and hor to activate them internationally.

      • Dear Saumya, I think you misunderstood the question. I think he/she wants to buy something from an Indian website, and as you have mentioned that Paypal cannot be used in Indian online shops, Gerardine can not pay for something he/she wants to buy from India.
        Edit: Sorry, I just now noticed that the question is a year old!

    • Hi, in you are outside of India, most indian ecommerce site accept international credit cards. You can try that. PayPal still hasn’t been implemented in most Indian ecommerce sites.

  48. Just noticed recently SBI has lower currency exchange fees compare to PayPal , but I use PayPal just for additional security on new sites, for
    some strange reason my SBI card can do PayPal transaction while my hdfc bank card gets linked and gets confirmed but can’t do any paypal transaction

  49. Thanks Saumya for such a wonderful article which tells everything about the issues with PayPal India. I was planning to open PayPal account before that I just wanted to know about the features and restrictions as I see no Indian merchant support PayPal as wallet.

    • Actually no Indian Marchent can. As it PayPal doesn’t support any transaction within the country as per RBI law and at this point PayPal has no interest (as far as I know) to establish themselves as a Bank in India to do the tasks it wants to do.

  50. please tell me ” as i am a foreigner and i want to leave india …. if i have a lot of money how exactly can i leave with it ?? I was considering the option to open an account in city bank ; transfer all my money on it and try to move the rest overseas…. is it possible ?

  51. whynt am able to do international transaction through my sbi debit card global….amount is not completing and refund is initated autometically…..let me know.

    • SBI is a very inconsistent bank. Seriously one of the worst bank in India.

      • 100% agree from personal experience.
        I was on hold for about 5 minutes when I called their CS and after they came, all they told me was to come to the bank for the CIF number which I very much needed for internet banking, inspite of requesting them and that I could confirm my identity on the phone, they did not listen.

  52. Hello,
    So what you’re saying is that there wouldn’t be any 21-day hold on Indian business paypal accounts? I’m about to receive a payment and not sure if I should proceed because of the 21-day hold issue.

    • Well, every time you will receive a payment it will be automatically cleared to your Indian bank account within 24-48 hours.

      • Yes, that I know. What I want to know is, was there any time you came across an incident or read about it anywhere, where the funds have been held on an Indian Paypal account before the auto withdrawal?
        I want to be really sure cause I cannot take that risk as these funds will be my only source of survival at the moment.
        I’ve also read that there were some technical issues going on with the auto-withdrawal and that we had to manually login and withdraw and it would take upto 7 days for the funds to reflect in the bank acc. How’s the system now?
        Any information on this would be much appreciated.

        • If you ask me personally I will say that ICICI Bank cards are the most successful cards for international transactions. I’ve been using them for long time now and never had any issues. Moreover, the auto-withdraw works just fine and never faced any single issue either. In near future I will try the SBI card if I had to make any small transaction. But again, for international transaction ICICI is what I personally recommend.

  53. Dear Sir, Namasthe. I shall be thankful for your advice on the following issue : I have State Bank Global Debit Card(Master Card) issued by the State Bank of India. i will be visiting USA often to see my children. While I have no problem withdrawing money (US Dollars) from ATMs in US, I am unable to purchase things on line in US. I took up the matter with the State Bank of India as also Amazon. After protracted correspondence, I received the following replies from them: E mail from SBI Contact Centre dt. 1st May 2017: ” ……. We would like to inform you that the State Bank of India ATM/Debit Cards will participate only on 3D enabled websites…….” E mail from Amazon dt. 6th May 2017. ” …… Amazon US is not 3D secured website. This being the reason you are unable to use the Master Card issued by the State Bank of India on our web site……” In this connection, I would like to mention, that in response to my SMSs. I was informed that my requests for switching on INTL/ECOM services had been successfully processed.
    PayPal has also turned down my request in this regard. In their e mail dated 11th Oct.2017 they have informed me “… At this time Pay Pal does not offer the feature that you have requested…..” I could not make on line transactions from Walmart too, though I was able to buy things there swiping my Debit Card.
    I shall be thankful for your advice as to how I can buy things on line in U.S. using my Debit Card. Thanking you, Kind regards.

    • Just yesterday I made PayPal transaction with my SBI Global VISA Debit Card and it went smoothly. I will highly recommend you to checkout this article of mine for the solution of this problem:

    • Dear Sir, Thank you for your prompt response. I would like to invite your attention to the fact that Paypal, only recently (Oct. 10) has categorically stated ” …Pay Pal works with the regulatory requirements in each country we are available in and as a result our accounts are country specific. At this time PayPal does not offer the feature that you have requested…” Do you still advise me to pursue the matter with Pay Pal, their
      statement notwithstanding. I do not want to open a Bank account in USA.
      I would like to once again state that that I WANT TO BUY THINGS ON LINE IN U.S.A. WHERE I AM ON A VISIT CURRENTLY USING MY DEBIT CARD. I should be thankful for your suggestion int his regard.
      Thanking you, Kind regards

  54. Sir I followed all the steps you have given but still are not able to do international transactions. I have linked my SbI platinum debit card with mastercard logo in my paypal business account but whenever i try to do international transactions ,my card is declined, even though my card is activated for international ,e commerce ,pos usage but still not working on the sites like seo clerks and fiverr or even in donating a little amount of money to the world orphanage… card is working smoothly in ATMs for withdrawing cash but not in international transactions directly or through payapl, …sir please help me solve this problem…..
    kind regards
    Shariful Haque

  55. Hi Saumya,
    PayPal India website says that I can open PayPal business account in India and receive payments from customers around the world. But, after reading your article, I am confused if my customers (in India and Overseas) will have problem buying my services online. Would you recommend that I shall proceed with PayPal business account? Thanks a lot for your kind responses to all queries.


  56. There is something basically wrong with paypal’s indian service, and that isn’t due to two-factor authentication, but rather it has to do something with laundering, and frankly I disagree with you in faulting RBI, for putting up stricter measures, or two factor authentication.
    Let us note that not only RBI, but even non-financial like google mails have now put in this.
    Secondly, it is much easy to go by single factor authentication, which is visible in card, the second factor is the mobile linked to card, or the IPIN in memory of account holder, that can’t be so easily hacked, except by scamsters to gullible.
    Thirdly, I have been doing quite a bit of international transaction, in print/ visual media from several platforms, some with paypal, some without. The paypal had been quite frequently giving me trouble, even with two-factor gateway, whereas some of the stores had been directly processing the transactions – on a single factor authentication, which runs in total contradiction of your claim.
    The service of paypal had been poor (permit me to euphemise something worse). On several occasions, on payment bounce, I had contacted them, but they either don’t know, or don’t want to know. Then I contacted the bankers, whose card had bounced in paypal (but didn’t in other platforms) and found that THEY (not RBI) had restricted paypal due to some suspicious payment activities. I came back to paypal with the message (which frankly was their duty to find, not mine, once I had made a complaint of the incident). They noted, and that’s all. They are silent, as they were when the complaint was made, till I called them up. It is one and half month, and still my payments are bouncing whenever it is paypal, and going through where there isn’t.
    Unfortunately some, like ebay, are exclusively on paypal, and hence are now out of bound for me.
    I don’t thing it is right to paint things in monochrome, without seeing all points of view. That RBI was right is now confirmed by the restriction put by at least two bankers, one of them Foreign.

    • See, it’s not the point of RBI being right or wrong. Many UK based banks also provide 2 step verification but they also do allow their cards to be accessed on without two factor authentication gateways which most Indian Bank cards don’t due to RBI rules. Hence for a normal user it becomes quite complicated to understand all the technical side behind it. I personally think there should be a system where if a account holder put forward request to execute transaction on international sites where 2 Factor Authentication is still not a thing, they can do that. PayPal being one of the more popular of them. Also I do agree that PayPal does have many problem within themselves and the issue you are saying that your card is getting accepted in other international merchant websites but not with PayPal, faced that too.

  57. Article content is useful. For decades i have not been using Paypal account for transactions with people within India.
    I just saw some paypal ads exhibiting Shopping within India. I wondered if the rules have changed.
    Saumya seems to be a talented and enthusiastic writer. I fail to believe his pen can emit grammar errors but those are in plenty. At least three instances of THEY OCCURS type and Intra-country displayed as Inter-country. Whatever be the cause behind such errors, perhaps a better proof-reading is desirable.


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