Internet based Payment system PayPal has announced withdrawal facility for Indian users. PayPal is widely used by many freelancers and small companies to get money from their clients. The direct bank account withdrawal facility comes free of cost if one wants to withdraw more than Rs 7000. While for withdrawal of less than Rs 7000 a fee of Rs 50 will be charged.

PayPal charges a transaction fee of 2.7 – 3.3% for receiving money for business users while the service is free for personal users.

PayPal is currently supporting the following Indian Banks.

• State Bank Of India
• Bank Of India
• Axis Bank (Earlier known as UTI Bank)
• HDFC Bank
• ICICI Bank
• Canara Bank
• Union Bank of India
• ING VYSYA Bank
• Standard Chartered Bank
• HSBC
• Citibank

Indian users will be happy with this facility as getting a cheque from PayPal was taking lot of time to get the funds. In addition, there was a fee of US $ 5 for each withdrawal.

PayPal users can add their bank account details and IFSCI (Indian Financial System Code). The Indian Financial System Code (IFSC) is an alpha-numeric code designed to uniquely identify bank branches in India. This is an 11 -digit code with the first four characters representing the bank code, the next character is a control character, and the last 6 characters identify the branch. For getting this code, users will have to check with their Bank.

PayPal has added many new features recently and has also started offering services in many countries. Another popular payment processing system, Moneybookers is competing with PayPal. Moneybookers has doing decent business in Europe. Moneybookers supports more countries compared to PayPal and has lower fees. Moneybookers also supports more currencies and offers funds in Bank Account and via ATM / Debit Cards.