Previously I had informed my fellow bloggers about the update to the Paypal withdrawal issue at this post http://www.netchunks.com/internet-software/internet/paypal-indian-banks-withdrawal-issues-resolved-more-problems-evolved/

Paypal had earlier stated that it will re-continue local bank withdrawal on March 3rd after suspending all withdrawals in India for atleast a month. According to that statement Paypal had also informed the users that from now onwards any Indian user who would want to withdraw to his bank would need an export code for the withdrawal. Since Paypal did not clarify What this Export Code meant many freelancers made a pre assumption that this Export Code was the IEC (Import Export Code) issued by the RBI for Import and Export. Thus this caused a lot of chaos in the Indian Freelancer community since the IEC Code is not easy to acquire.

On March 3rd, Paypal posted a new post in it’s blog and clarified everything about how an Indian should withdraw from Paypal. They also clarified that the Export Code that they were mentioning earlier did not mean the IEC code but instead it was a set of codes that they had made up themeselves so that they can categories what kind of transaction is happening. From now onwards while withdrawing to your bank account you will need to choose a purpose of your withdrawal (i.e. for what have you got the money ) for e.g. Freelance journalism, Hardware Consulting, Software Consulting etc. The whole list of Purposes can be checked here .

The selected purpose will appear as a code on your bank account statement along with the description.

So from now onwards when you withdraw money from Paypal to your bank account be sure to properly enter the purpose as listed so that you may not across any problem in withdrawal.

While on the other hand, those people who had withdrawn during this Paypal chaos, you all do not need to worry. Paypal is going to refund your account until this weekend as they stated.

And well for those who have not join Paypal. Well you should, it is one of the best Payment Processing system out there. Even though it goofs up sometimes, It is the easiest and the most reliable.

Shiva Chettri is a young web entrepreneur, designer and a SEO Analyst and Consultant. You can find him blogging at Netchunks about Technology, SEO and Blogging

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