For what can be a moment of relief for many service providers and small companies in India, PayPal resumed its service partially in India after it received the approval of the Reserve Bank of India.

The relief is limited only for settlement of export of goods and services and not for personal payments. PayPal India is still to get the RBI approval for personal inward remittances to India.

Earlier, in February, PayPal India suspended payments to and from the country creating havoc among millions of its users including a large bunch of freelance service providers.

As per the changed withdrawal system, meant to fulfill the RBI directive, for initiating a withdrawal users need to fill an "export code". The RBI directive aims at a higher control on cross-boarder transactions.

As personal payments are still banned, overseas clients for Indian goods or service providers can now make payments only by using the 'Pay for Purchase' option. At the same time when the service providers want to withdraw, from their PayPal account to the bank account in India, they will need to feed a purpose code for the transaction. The purpose code will help RBI track the nature of the transactions carried out.