PayPal, one of the leading online payment service to send and receive electronic payments worldwide has finally introduced the auto withdrawal option for users of India. PayPal announced 6 months ago that Indians need to withdraw all the received payments to their Indian bank account within 7 days. But nothing unusual happened when one doesn’t comply with PayPal’s new policy discussed above.
PayPal seems to be back in action! PayPal will now automatically transfer the funds to your bank account only if you have one bank account added to your PayPal account. Your PayPal balance is auto withdrawn to your local bank account in India daily and No Fees is charged for this facility.
The new auto withdrawal feature might sound good to many while others who like to accumulate their money in PayPal, just to get a better exchange rate wont be able to hold it anymore. However, it wont cause any hindrance because Indians are deprived from making purchases or sending payments with PayPal balance and need to link their Credit Card to PayPal account in order to do the same.
If you’ve more than one bank account added to your PayPal account, then you have to manually enable the auto withdrawal option for your account. To do so,
1. Login to your PayPal account.
2. Hover to Profile menu and select ‘Add/Edit Bank Account’.
3. Then select the desired bank account that you want to set as your autowithdrawal account. Click the “Make Auto Withdrawal” option. That’s it!
The option to set a bank account as your auto withdrawal account also appears when you add a new account to PayPal.
Note: An auto withdrawal account is your bank account in India into which PayPal will automatically transfer your PayPal balance.
For more details, check the official detailed FAQ from PayPal below:
What is auto withdrawal?
Auto withdrawal is the process of automatically transferring your funds from your PayPal account into your bank account in India.
Where will my funds be auto withdrawn to?
Your PayPal balance will be auto withdrawn to your bank account in India. If you have one bank account added to your PayPal account, it will be set as your auto withdrawal account. In case you have more than one bank account added to your PayPal account, you will have an option to set your auto withdrawal account.
Why are my funds being auto withdrawn?
This is an Indian regulatory requirement and applies to all PayPal users in India.
When does auto withdrawal happen?
Your PayPal balance is auto withdrawn to your local bank account in India daily. You can check your bank account within 5-7 working days after your funds have been auto withdrawn from your PayPal account.
Can I withdraw my funds?
You can also withdraw your funds. Here’s how:
Log in to your PayPal account and click Withdraw at the top of the page.
Select the bank account you want to use.
Enter the amount and click Continue.
Select your purpose code for withdrawals.
Make sure that your information is correct and click Continue.
Can I use my PayPal balance?
When you receive payments and it is available as balance in your PayPal account, you must withdraw your funds or let withdrawals happen automatically. In accordance with Indian regulations, you can’t make purchases or send payments with your PayPal balance. Please use your card linked to your PayPal account to make purchases or send payments.
*If foreign exchange or currency conversion is required to complete any transaction, this will be performed by a licensed financial institution. The foreign exchange rate is adjusted periodically on a daily basis to reflect market conditions and includes a 2.5% processing fee which is retained by PayPal. The exact exchange rate that applies to your transaction will be displayed to you at the time of the transaction.
So, would you opt for the auto-withdrawal feature to enable automatic transferring of funds from your PayPal account into your bank account in India?