One of the front-runners for international instant fund transfers, PayPal in 2016 already had 180 million users across the globe and a little over 10 million Indians that had subscribed to the international fund transfer service. In 2016, bank such as HDFC Bank the first to tie up with PayPal to offer their services and let their customers easily sign up to the service. Soon enough, State Bank of India and other commercial banks joined as well. That said, let’s start by mentioning the banks allowing their customers to open a PayPal account using their debit card followed by how customers can link their debit card to open a Paypal account.
Indian banks that are offering PayPal services
Listed below are some of the banks that let their customers link their debit card to open a PayPal account. Only banks that issue internationally accepted debit cards that are associated with VISA, MasterCard, American Express, Maestro Debit cards, and Discover are approved to let their customers open a PayPal account using their debit card.
- Axis Bank
- HDFC Bank
- IDBI Bank
- Kotak Mahindra Bank
- State Bank of India (SBI)
- Indian Bank
Steps to open a PayPal account using one’s debit card
Before getting into how one can open a PayPal account using their debit card, SBI customers will have to request their bank to activate their debit card for international usage as for security reasons, SBI debit cards can be used domestically only. Other bank customers can go straight to the points listed below to open a PayPal account using their debit card:
- Visit the PayPal homepage.
- On the right-top corner of the screen. Click on the “Sign up” button.
- The page will then be redirected.
- Click on “continue”.
- Now, enter your personal details such as your name, date of birth, mobile number, etc. Also, enter your email ID and password.
- Click on “agree” and “create account”.
- Enter your debit number, the expiry date of the card and the CVV along with your billing address.
- Click on “link card”.
- As soon as you have linked your card, you will have to provide your PAN details, confirm your email ID, add the bank account you will use to transfer money to your PayPal account and enter the purpose code.
Limitations of holding a PayPal account
Though PayPal has numerous benefits with regard to making remittances instantly across the globe, it comes with certain limitations as listed below:
- If an Indian customer receives a remittance from another account, he/she cannot use that money immediately to purchase anything online. The customer has to first transfer the money back to their bank account and then make a purchase using their debit card. Prior to 2010, this restriction was not applicable for Indian PayPal customers.
- Since PayPal was designed for international cross border remittances, Indian customers cannot make remittances or receive funds from Indian PayPal account holders - as per a restriction set by the Reserve Bank of India.
PayPal fees and charges
For those who wish to open a PayPal account, it is completely free and there are no account opening charges. Neither are there any monthly or annual fee charges. However, for every transaction, a customer is charged 2.5% + Rs.3 (fixed fee).
PayPal remittance limit and minimum withdrawal limit
Once the PayPal India customer has received the fund transfer via PayPal, there are no charges for transferring the funds from one’s PayPal account to their bank account. That said, if the bank account details are incorrect when making the transfer, the customer is charged a penalty of Rs.250. For Indian PayPal customers receiving money, there is a limit of $10,000 that an Indian customer can receive per transaction. No such limit is set for International customers though.
PayPal Customer Care Number
For PayPal Indian customers that are having issues with their PayPal account or have problems sending or receiving funds, they can contact the PayPal customer care unit between 9 a.m to 9 p.m.
1. Is there a need to have an internet connection to make a PayPal remittance?
Yes, to process the payment or to receive funds, the customer is required to have internet connection.
2. Does PayPal come with an activation and a deactivation fee?
To activate your account, all you need to do is fill in the required details and submit the essential documents. For deactivation there are no charges as well. All that the customer needs to do is uninstall the PayPal app. However, there are certain charges for transactions including currency conversion charges.
3. Can you tell me which debit cards are acceptable? Are all debit cards accepted?
No, not all debit cards are accepted by PayPal. Only debit cards with international card associates such as VISA, MasterCard, American Express and Maestro are accepted.
4. How do I know if my remittance has reached the person I’m trying to send money to?
You will get a confirmation message on the app as soon as the recipient of the fund transfer has received the money.
5. I wish to sent an Indian customer of mine some money via PayPal but the transaction is declined for some reason? What can I do?
As per the guidelines set by the Reserve Bank of India, you cannot send money or receive money from another Indian customer using PayPal. In addition, the maximum amount that an Indian customer can receive per transaction is $10,000 - another restriction that has been set by the Reserve Bank of India.