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Can we use Paypal payment mode for our receiving the payment from abroad in export business. This mode is legal in India? how can we present our documents to bank after shipment if we use Paypal mode for payment from abroad.
Free Member, Joined :10/30/2004
No of Topics Posted : 5
Reply/Comments : 0
It is legal to receive export related payments through Paypal in India. In order to do so, merchants would need to confirm their email address, add a Permanent Account Number, Purpose Code and local bank account to their Paypal account.
However, the RBI has a placed a cap of $10,000 on each transaction for receiving payment through Online Payment Gateways such as Paypal vide notification RBI/2012-13/528 accessible at http://rbidocs.rbi.org.in/rdocs/notification/PDFs/APR109110613F.pdf.
All payments received by the exporter on his paypal account will be automatically transferred by the bank (which has entered into an agreement with Paypal) to what is known as a NOSTRO collection account which is maintained by the bank as per RBI requirements (seehttp://rbi.org.in/scripts/NotificationUser.aspx?Id=6107&Mode=0). The balances held in the NOSTRO collection account will be credited to the exporter's bank account on receipt of confirmation from the importer.
You "may" have to submit documents such as sales invoice and shipping documents to your bank (https://www.paypal.com/in/cgi-bin/webscr?cmd=xpt/Marketing/popup/PurposeGroup_IN-outside)
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