How to create paypal Account in India {Tutorial}

Benefits of using a PayPal account
  • With a fully verified PayPal account you will be able to receive payments from overseas.
  • If you don’t have a credit card, you can use Indian Debit card to make payment.
  • With PayPal you will be able to send mass payment.
  • You can easily create and send invoices directly to your client.
  • PayPal is a more secure way of online payment as you can make online payment without exposing your credit card details.


  • Go to and click on Sign Up Now button.
  • On next page you will have to select between “Individual account” and “Business account”. If you are a blogger, I would recommend to go for Individual account. In case in the future if you ever need a Business account, you can upgrade your individual account to business instantly from PayPal dashboard.
    Now select your account type and click on continue.
  • On next page you need to select your country and provide your email address and password for your PayPal account. If you are done, click on continue.
Now, here you need to fill out the form with your personal information. once you are done, check the box to agree and click on Agree and Create account.
  • Here on this page you can enter your Credit/Debit card details or o you can skip and link it later by clicking on “I’ll link my card later”. Now a message will appear confirming skip, Click on Yes, Skip it.
  • In this next page click on account to visit your PayPal dashboard.
  • Now your PayPal account is created successfully. Please you must remember, when you open a PayPal account in India, it’s a limited PayPal account. With a limited account you can send Payment to anyone using your credit or debit card, but to receive payment you need a verified PayPal account in India.
On your PayPal dashboard, click on complete your tasks.

For a fully functional PayPal account, you need to complete 4 tasks.
  • Provide PAN
  • Confirm Email
  • Link/Add Bank Account
  • Provide Purpose Code


You need to add a PAN to receive payments into your PayPal account and make withdrawals to your bank account in India.
Your PAN card name should be exactly same as your PayPal account name. If you don’t have a PAN card yet, then you should create a PayPal account in the name of your parents.
Provide 10-digit alphanumeric code as on your PAN card and click on submit.


When you signup for PayPal account, you will get an Email from PayPal containing link to confirm your email and verify your PayPal account.
In order to receive payment you must confirm your Email.


You must add a bank account to receive payments into your PayPal account. This process could take 2-3 days to complete. To link your bank account click on start in front of Add bank account. Now you will be taken to next page where you need to add following bank details:
  • Your Name (Name on your Bank account must match your name on PAN card)
  • Your Bank Account
  • Your Bank NEFT IFSC Code: If you don’t know your bank branch IFSC code then go to your bank official site and search for it or you can ask your bank customer care for it. Or you can simply Google it with Your bank name, branch, IFSC code. Example: ICICI Bank, Kathua IFSC code. You can also use Ifsccodebank.comand websites to find your bank IFCS code by selecting Bank name, branch from drop down list.
Once you are done with adding your bank account details. Make sure all information is correct and click on review. Now PayPal will send  2 small deposits in your bank account within 4-5 days. Check your bank account for deposits.
Once you received these small deposits in your bank account, login to your PayPal account. Click on Get Verified at the top and you will be take to next page. Now enter these small amount in the boxes and click on confirm.
Now you have completed verification of your bank account and PayPal linking.


Now you need to provide purpose code for your account. As per Indian regulations you must add purpose code for withdrawing payments to your bank account from your PayPal account.
Purpose code indicates the type or nature of business for which you are receiving payments to your PayPal account. It simply helps RBI to track the nature and type of transaction that’s going on.
To add purpose code, click on start in front of Add Purpose Code. If you are receiving payment for affiliate commissions or advertising, select “Advertising and Market Research” or select whatever you find appropriate.
This Purpose code is your default purpose code. You can select any other purpose code at the time of withdrawing funds to your Bank account from your PayPal account.
For Indian PayPal account money is withdrawn automatically to your bank account everyday. But you can also manually do so. It may take 5-6 working days for money to be credited in your bank account.


If have successfully linked your bank account to your PayPal account then this step is optional. Your PayPal will be fully functional without credit card or debit card details if you have already linked your bank account to PayPal account.
But in case you still want to link your credit card or debit card to your bank account, then on your PayPal dashboard, click on Link debit/credit card.
You will face no issue while linking your credit card to your PayPal account. But debit card from only few banks works with PayPal. Few debit card which works fine with PayPal account:
  • ICICI Bank
  • HDFC Bank Platinum Chip Debit Card
  • Axis Bank
  • CITI Bank
If you aware of any other bank debit card that works fine with PayPal then let us know via comments.
In case if you want to add a new credit card or debit card or edit/remove existing credit card or debit card, then you can do so by going to Profile >> Link/Edit Credit Card.


So I want to make this point clear that you can create a fully functional PayPal account without credit card, you just need to add/link your bank account with PayPal account which I had already discussed in the article above.
We are finished with the article on how to create a PayPal account. I hope this article will help you in creating and verifying your Indian PayPal account.

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