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 Your PayPal balance is auto withdrawn to your local bank account in India daily and No Fees is charged for this facility.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Where will my funds be auto withdrawn to?
Your PayPal balance will be auto withdrawn to your bank account in India.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Why are my funds being auto withdrawn?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Your PayPal balance is auto withdrawn to your local bank account in India daily.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? 🙂
Also ,This is also very bad ,I have to give everyday 50INR ..if it withdraws daily ,What the hell is that? As we are top IT services country but we don’t have even our fully functional system like paypal and if other guys are providing services ,our politicians suing them ,We don’t have guts to make system like paypal? How big IT services country are we ..I doubt it ??
Certainly a bad move from PayPal because now we can’t hold our money for better exchange rate. Seems like it’s the end of PayPal or may be not..!!
What they withdraw our fund daily? This might brings a huge lose to the guys like me who earns on daily basis. I wish PayPal makes some changes like they did lastly.
I’ll not enable this now. I’ll wait for some better alternatives.
Paypal has enforced this auto-transfer since April 2011, atleast thats what their customer support told me, when I raised the same ” what will happen to my funds” , however, at that time, it was a forced action from Paypal, and not something that was made available to users like us to enable.
I have also had instances where paypal has refunded the 50/- Rs service charge for withdrwals less than 7000K.. after going back and forth on the customer support. However, they declined to make any commnet on why this information was not made available in their webpage, for the public.
My safest route has been so far, everytime, I have funds for withdrwal, I initate an enquiry via the contact form and confirm the 50/- rs waiver.
The funny thing is, this refunded amount (50/- a.ka 1.#$ ) is reflected in my paypal balance, and not really useful in anyway, unless i get a remittance for over 7000K
My conversation with paypal support – Verbatim
http://homepreneur-online.com/my-perspective/silent-executioner-hesitant-player-rb-paypal-india-issue
Good to know that PayPal is now agree for automatic withdrawal to Indians.
hello..have a big question..i earn abt 1$ per day..now i by mistake clicked on auto withdrawl..its enable..cant see any option 2 disable it..so what should i do now?n also if i have 1$ in my paypal..so how could they move it to my bank..its state bank of india..i thnk min should be 100..right?plz tell me.atleast tel me how to disable it..theres nothng in edit profile to disable it
Auto withdrawl is good option. Now all money comes to my paypal account is automatically transferred to My company’s current account. And its auto option for getting funds regularly.