It has been approximately a month since Indians faced the problem of bank withdrawal. If you aren’t aware as to what was the issue, then read on the following posts to get an idea :
Mr. Farhad Irani, the person in charge of PayPal’s business in Asia Pacific, in his blog post dated February 26th, 2010 confirmed that the bank withdrawals will resume for Indians on 3rd March, 2010 and that all the Indian users of paypal will now require the use of a unique “Purpose Code”. In another blog update on 2nd March, 2010, he conveyed the the different Purpose Code’s to be used by individual’s. Here is the complete list of code as provided by Paypal :
Though paypal has given the specific codes for each type of activity however, things are still unclear as to how will those receipts be dealt which are not of a particular nature and have been received because of a variety services being given (From receivers point of view). Moreover, the above mentioned are just a part of otherwise a long list of purpose codes given by RBI (Reserve Bank of India). You can check out the complete list on RBI’s site. The list is somewhere in the middle under the head “NEW PURPOSE CODES FOR REPORTING FOREX TRANSACTIONS”.
For complete information on what purpose codes are, etc refer the official blog post from paypal.