How To Create PayPal Account in India & Verify (Complete Tutorial)


When you start working online, you need a mode to send and receive payment. Usually, you can use your credit card or debit card to make payment online, but to receive payment, you need to take help of services like PayPal.

PayPal has been one of the oldest and most-trusted services to send and receive payment. In particular, if you are from Asia or the United States, you will find PayPal’s service to be the best when it comes to receiving payment from overseas.

Do remember, most advertising networks (if you are a blogger) pay using PayPal, so it’s essential to have a PayPal account.

Verified Paypal confirmation
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When you open up a PayPal account, you can start sending payment right away (after linking your account with your debit or credit card), but to receive payment, you need to link your PayPal account to your bank account.

This will remove the withdrawal limit from your PayPal account, and you will be able to withdraw money from your PayPal account directly into your bank account.

Benefits of using a PayPal account:

  • You will be able to make online payments without exposing your credit card details.
  • You can use your debit card to make payment. This helps many people who don’t have a credit card.
  • You can receive payment from overseas accounts. (Such as clients or advertising payments.)
  • Many online services charge recurring payments. When you pay with PayPal, you can cancel the recurring payments at anytime.
  • You can send mass payments using PayPal. [Read Tutorial]
  • You can create and send invoices directly to your client. [Read Tutorial]

How To Create Your PayPal Account

First of all, head over to and click on to “Sign Up” to create your PayPal account.

On the next page, you have an option to select between a “Personal and business account“. For bloggers, I would recommend you to start with personal account and if you ever need a business account, you can instantly upgrade it from PayPal dashboard.

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On the next page, you need to sign up by filling up a form, you can enter your Credit/Debit card detail then or can skip it for later to send Payment. Do remember, when you open a Paypal account in India, it’s a limited PayPal account. You can use it to send Payment to anyone using your Credit or Debit card, but to receive Payment you need to complete these 4 tasks:

  • Add your PAN card
  • Confirm your Email (When you sign up, you will get an Email from PayPal to confirm your account)
  • Add bank account (This will be the bank account where your Paypal money will be withdrawn to)
  • Purpose code (From the long list, select the purpose on which you are receiving payment on your Paypal account)

Here is the link to the page which you can access anytime to see if any verification is pending for your account.

To verify Indian Paypal account
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Link Pan Card to PayPal:

Your Pan Card name should be same as your PayPal account name. If you are a minor without a Pan card, you should open a PayPal account in the name of your parents.

Linking Bank account to your PayPal account:

This process will take 2-3 days if you initiate now, so I suggest you to create your Paypal account right away, as if in future you need to receive money from any of advertising company or client, you don’t have to wait then. Click on Start in front of Add bank account and you will be taken to the next page where you need to enter just few fields such as :

  • Your Name
  • Your Bank account
  • Your bank IFSC code. (If you don’t know the IFSC code of your bank branch, simply go to your bank official site and search for it). If not, Search in Google with “Your Bank Name, Branch and IFSC code”. Ex: ICICI Bank, VasantKunj IFSC code”. You can also select No in front of “Do you know your bank’s IFSC code?”, and select your bank, state and branch using Drop-down from there.

confirm PayPal Bank linking
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Once you are done adding the bank account detail, Paypal will send you 2 small deposits in your bank account. After receiving the deposit (In my case it took only 24 hour to receive two small transactions), you need to login to your PayPal account, click on verify at top and enter the amount to complete verification of your Bank account and PayPal linking.

Enter bank transaction
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Add PayPal purpose code:

PayPal purpose code
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Next step is to add the purpose code for your transactions. If you are receiving Payment for affiliate commission or advertising, select “Advertising and market research” or select what is appropriate in your case. However, this will be your default purpose code, and at the time of withdrawing money from PayPal account to your Bank account, you can select any other.

Note: Money in your Indian PayPal account will be withdrawn automatically every day. You can also manually withdraw money to your bank account. Usually it takes 5-7 working days for money to be credited in your bank account.

Linking Credit Card/Debit card with PayPal account:

When you are linking a credit card to your PayPal account you will face no issue. You can always add a new one, edit old one or remove old one by going to Profile > Link/edit credit card. Debit card from selected bank works fine with PayPal and according to users comment, these are the Indian bank debit cards that I’m aware of which works fine with PayPal. (If you know of other bank Debit card, let us know via comment).

  • Axis Bank
  • ICICI Bank.
  • HDFC Bank Platinum Chip Debit card
  • CITI bank

While adding ICICI bank debit card if you see this error:

The bank that issued your card didn’t approve this transaction. Please contact the card issuer’s customer service department if you have any questions. Or you can add a different card now to continue.”

You need to call up their customer care and ask them to enable the international online transaction. Or you can also SMS INTL to 5676766 from your registered mobile number & it will enable international transactions.

For other bank debit cards, in most of the cases they will say it’s an international debit card, which works fine when doing a transaction at ATM, but you need to ask customer care if you can use the card for online transaction without 3D secure pin verification. If not, ask them to enable it. If they can’t, it’s time to change your bank.

Withdrawing funds from PayPal to Bank account:

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Alternate methods of activating your PayPal account:

Credit card:

Many bank issues a credit card in lieu of a fixed deposit. For example, you can open a fixed deposit of 10K and you will get able to get the credit card with a limit of 8K. I got my first credit card like this and it worked perfectly fine. Especially if you are building a career online, you should have a credit card.

When you add a new bank account or a credit card, you also need to complete the verification by the method given below. It’s easy & increases your PayPal limit

PayPal Card verification
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Create your free PayPal account

I hope this guide helped you to know everything about creating and verifying your PayPal account. If you have any query or want to share more tricks related to PayPal, let us know via comment.

Enjoyed reading this guide? Do share it on Facebook and LinkedIn.

Here are a few hand-picked articles to read next:

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Authored By
A Blogger, Author and a speaker! Harsh Agrawal is recognized as a leader in digital marketing and FinTech space. Fountainhead of ShoutMeLoud, and a Speaker at ASW, Hero Mindmine, Inorbit, IBM, India blockchain summit. Also, an award-winning blogger.

306 thoughts on “How To Create PayPal Account in India & Verify (Complete Tutorial)”

  1. Naresh Nandanwar

    Tell me one thing, I have a PayPal Account with my own name and surname. I do KYC of my PayPal account but only one thing is left for receiving payment in my PAN Card i.e. PAN Card number. I am 16 years old and I apply for my minor PAN Card and it will come in my home in 2-3 days but when I get message of my PAN Card number I write in PayPal KYC but it says it is invalid and I have last two chances otherwise my account will be banned. Tell me one thing is it valid of writing minor PAN Card number?? What should I do now? I have to receive payments!!

    1. @Naresh
      The best thing you can do is call PayPal customer care (They are based out of India) and highly efficient.

      They are the best people to guide on this.
      And, do come back and comment to share, how this issue gets resolved for you.
      Best of luck!

  2. Arvind Singh

    Hi Harsh, thanks for detailed explanation…I have created business account for paypal and than got is changed to personal paypal account. Now when I log in my account , it still shows as business account…can u tell me how to differentiate between business and personal account on PayPal , also which one is better… please note my purpose for opening PayPal is just sending and receiving money from my relatives in HK…is there any way we can reduce transaction fees like by using friends or family option..

    1. Hey Arvind,

      Both personal and business account has a different use case. if your purpose is to just receive and send money to your friends and family, a personal account is a right solution for you. Please contact customer care to check why does it still show a business account. Regarding the transaction fees, there is no difference between personal and business accounts. You can check out the fees here:

  3. Alok Sharma

    Hi Harsh,

    I click on this link of yours
    First of all, head over to and click on to “Sign Up” to create your PayPal account.

    I think both business and freelancer account are now same.

    I am Indian developer want to take payment from US client. So which one is best for me(Freelancer/business or Personal account) .


  4. Kuldeep sathwara

    If you have SBI Debit card and you can’t link with PayPal then try now because it works now. I have try

  5. Jaz

    Good article!!
    Can u help me with FIRC? Is there anything to be done from our side or does it get managed between the banks ( I hold an account in SBI) automatically?

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