Indian Paypal users need ‘Purpose Code’ and not Import-Export Code to Withdraw Funds to their Bank Accounts

paypal-india Since a couple of weeks there has been chaos among Paypal users as it paused withdrawal option from Paypal to Indian bank accounts which was one of the most loved and used service among Freelancers, bloggers and service providers to receive money from outside the country.

But earlier this week, in one of its official blog, Farhad Irani posted that they will be resuming bank withdrawal option to Indian users if they provide with ‘Export code’ while withdrawing funds, which many people misunderstood as ‘Import Export Code’ (One needs to apply to govt. of India for IEC).  But a few hours ago, Farhad cleared that its not ‘IEC’ that one needs and its just ‘Purpose code’ that would solve your purpose!

An Indian Paypal user simply need to put the purpose code depending on the category they receive funds on their Paypal! (For ex. you need to use code ‘P0805’ if you are a blogger/freelancer/journalist). Guess this news would definitely be relief for many Indian bloggers and freelancers.

Paypal purpose code for different categories:

Code Category Description Who should be using it
P0101 / P0104 Export of Goods Value of export bills negotiated / purchased/discounted etc. (covered under GR/PP/SOFTEX/EC copy of shipping bills etc.) eBay merchants, jewelers, sellers of collectibles and other such products through eBay and your own websites / catalogues globally.

Please note: Cross border shipment of goods and services for which you file GR / PP / SOFTEX / EC forms only should be processed with this code. Use P101 if Deutsche Bank is your banker and P0104 if you bank with any other bank

If you have any questions, please check with your bank to help you with the same.

P0301 Travel , Hospitality and Tours Purchases towards travel (Includes purchases of foreign TCs, currency notes etc over the counter, by hotels, hospitals, Emporiums, Educational institutions etc. as well as amount received by TT/SWIFT transfers or debit to Non-Resident account). Online Travel Agents, Airlines, Railways, Buses, Taxicab Services, Hotels, B&Bs and other travel / tourism related sales through PayPal



Information Technology Computer Information Services. Hardware / Software / Data Processing consultancy/implementation If you are an independent / freelance coder / hardware consultant or data processing service provider, or a small business providing such services for websites globally, please use these codes.

For all IT related consulting services where you know you do not need to file a SOFTEX form, please use the appropriate code. 801 for hardware consulting, 802 for software consulting and 803 for data management and processing consulting services



Content and Journalism News Agency and Subscription services If you are a freelance journalist / blogger / news aggregator please use this purpose code for withdrawals.

If you are a newspaper or an online news aggregator for websites overseas, please use the appropriate code from these two. 805 if you a freelance journalist, and 806 if you are a newspaper / aggregator

P0902 Licensing of creative works Receipts for use, through licensing arrangements, of produced originals or prototypes (such as manuscripts and films) Artists, designers, other creative service providers where the principal revenue mode is license fees, please use this code.

If you produce creative works which you license out for entities overseas, licensing revenues may be classified under this purpose code

P1004 Other services Legal Services If you are providing outsourced law related services
P1005 Accounting, auditing, book keeping and tax consulting services For accounting consulting and accounting services
P1006 Business and management consultancy and public relations services Management / brand consulting and management services can be exported with this purpose code
P1007 Advertising, trade fair, market research and public opinion polling services Marketing/ brand consulting / logo design / event management services can be exported with this purpose code
P1008 Research & Development services If you are an outsourced research and development services provider based in India, receipts can be inwarded through this purpose code
P1009 Architectural, engineering and other technical services Any other technical services such as eTutoring, education and other services you render over the internet via web conferencing tools or similar channels, please use this code for your withdrawals

(Pupose codes are from Paypal’s blog)

(Image credits: labnol)


Debajyoti Das March 2, 2010

So I think for us it will P0801, P0802, P0803 (Information Technology Computer Information Services. Hardware / Software / Data Processing consultancy/implementation) right ??

But are we also in Content and Journalism ??

VISHAL March 2, 2010

Thanks for sharing it deepak..but for Bloggers like us which code is rite ?

Mridul March 2, 2010

Ok.. I’m a Blogger as well as a Freelancer , but my major Money came as a Prize Money and some i earn through Bux sites. Than which Code shall i use P0801/02/03 ?


Deepak Jain March 2, 2010

@All above
Rahul have written a detailed post to clear the doubt regarding which purpose code is to be used by whom?

Bhooshan April 4, 2010

Hello friend,

So you mean I do not have to go to Bank or RBI or govt. to get any code or number? I do not have to fill any form to get any number?

I am a freelancer software coder.

Please reply.

Sam April 7, 2010

Can i know what code we must use for blogging?

Rafe April 13, 2010

I also want to know that I am planning to opena business account with them, and I dont have a bank account. I mean I have a personal account here in India. Can i still open account with paypal and do money transaction even withdraw money.

Ricky September 5, 2010

I am an indian paypal user and i earn most of my money from PTC sides but i don’t know what will be its “purpose code” so anyone tell me what code i’ll use to withdraw my money from paypal.

Raghu November 4, 2011

[This Question is not related to paypal directly].

As an freelancer, this is first time I have got payment of 500$ from a US client for the programming work, who has transfered money directly into my bank account, now bank is asking purpose code, import/export code and softex form.

I am sure bank clerk is asking too much. I don’t have import/export code or anything and i am not sure if its required. Can someone guide?