Link A Bank Account to Your PayPal Account

Sep 05 2019 | PayPal editorial staff

Linking a bank account allows you to withdraw money you receive.
So you’ve signed up for your PayPal account and may have linked your credit or debit card to skip the hassle of typing your financial details each time you pay online. With PayPal, you can also add a bank account as another payment option, as well as to withdraw any funds sent to your account from overseas 

Linking Your Bank Account

Step 1: Link a new bank account 

To start linking a new bank account, look for Payment Methods on the top bar, which brings you to an overview of your current PayPal balance, as well as linked credit or debit cards. Simply click on Link a bank account to start the process. 

Step 2: Add in your bank account details 

We’ll need your account number and your IFSC code for account verification purposes. If you don’t see the code on your checkbook or bank account statements, you can find it by selecting I don’t have my IFSC codeThe dropdown menu will help you find the code of your bank branch. 
Tip: Remember to look out for the “secure” lock on the top right edge of the page to make sure you’re on the right page.

Step 3: Confirm your bank account

Once you’ve done that, we’ll send you an email to notify you of two small deposits (between 1.01INR and 1.50INR) made to your account.  

These should show in your account within 4-6 working days. Once you’ve received them, click on the link in this email to enter the deposit amounts for verification.  

And that’s it, you’re done! You can now use your PayPal account to receive money from overseas, and have it withdrawn to your bank account in full.  

Withdrawing payments to your bank account  

When you receive funds into your accountwe withdraw the amount to your bank account on a daily basis to fulfil regulation laws. If you have several accounts linked, you can choose a preferred account to have the funds transferred to. If you notice a $500USD monthly withdrawal limit, simply confirm your bank account to have it removed. 


If you’re having trouble linking your bank account, check if you’ve answered ‘Yes’ to all the points listed below:  
  • Is your bank account opened in India?
  • Is your bank account already linked to another PayPal account? 
  • Have you linked this bank account before? If you've added this bank account to 3 different PayPal accounts previously, you won’t be able to add it to your PayPal account again. 
  • Does your name on your bank account match the name on your PayPal account?
If you’ve answered ‘No’ to any of the above, you might want to check the details you’ve previously submitted before trying again.  

Adding a bank account to pay, and to withdraw funds you receive, is just one of the many ways you can use your PayPal account. You can find out more how to make the best out of your account, or simply start shopping now.   

The contents of this site are provided for informational purposes only. You should always obtain independent, professional accounting, financial, and legal advice before making any business decision.

Frequently asked questions.

Here's how to add your local bank account:

  1. Go to Money.
  2. Click Link a bank account under "Bank accounts".
  3. Click Add.
  4. Enter your bank account information, and click Review.
  5. Review information, then click Submit.

Your PayPal balance will be automatically withdrawn to your bank account daily. If you have one bank account added to your PayPal account, it’ll be set as your auto-withdrawal account. If you have more than one bank account to your PayPal account, you can select your preferred auto-withdrawal account from your bank account list.

To prevent withdrawal failure, please make sure the name on your PayPal account, bank account and PAN ID are exactly the same.

To confirm your bank account, we’ll send 2 small deposits (each between 1.01 and 1.50 INR) to your bank account.

The deposits should appear in your bank account in 4 to 6 business days. You can review your bank statement or contact your bank to find out the exact amounts of these deposits. With this information, you can complete the confirmation process online.

Here’s how:

  1. Go to Money.
  2. Click the bank account you want to confirm under "Bank account".
  3. Choose the bank account and click Confirm.
  4. Enter the exact amounts of the 2 deposits. For example, if the amounts you received are 1.12 and 1.07, enter 1.12 and 1.07.
  5. Click Confirm.
  • If the amounts are entered incorrectly 3 times, your bank account will be disabled and removed from your PayPal account.


Watch this video to see how to add an Indian bank account to your PayPal account:

Here's how to add your local bank account:
  1. Go to SettingsIcon Settings.
  2. Click Add my bank beside "Bank accounts".
  3. Enter your bank account information and click Review
  4. Check your bank account statement in 4-6 business days for two small deposits from us and confirm your bank account.

Due to India’s regulation, your PayPal balance will be automatically withdrawn to your confirmed bank account daily. If you have only one bank account added to your PayPal account, it’ll be set as your auto-withdrawal account. If you're adding more than one bank account, you'll see an option to select your preferred auto-withdrawal account. 

Once you receive the small deposits in 4-6 business days after adding the bank account, you can confirm that bank account in your PayPal account.

Unable to add your bank account?
  • Not all banks are accepted at PayPal, you may be using a bank that is not compatible with PayPal such as an online only or prepaid bank account. Try adding a different bank account to your account.
  • The name on your bank account needs to match the name on your PayPal account, make sure you enter the correct information.
  • You may need to complete a security check first.
Due to India’s regulation, your PayPal balance will be automatically withdrawn to your local bank account (which you've added to your PayPal account) daily. If you have more than one bank account added to your PayPal account, you can select your preferred bank account for the automatic withdrawal purpose.

You can also manually withdraw your balance. Here’s how:
  1. Go to your Money page.
  2. Click Transfer money.
  3. Follow the instructions on the page to complete your withdrawal.
  • A withdrawal to a bank account typically completes in 1 business day, but it may take longer depending on your bank’s clearing process.
  • The minimum amount for manual withdrawals is 500 INR.
  • If the withdrawal fails due to incorrect bank information, your funds will return to your PayPal account (a withdrawal return fee of 250 INR may apply in this case).
  • After you request a withdrawal, it cannot be cancelled.
Since 180 days have now passed, you can now transfer your money from your PayPal account. You can transfer your money to a bank account on your account.

You may need to update your bank account or add a new bank account before being able to withdraw your money.

Please review our troubleshooting tips if you are having problems transferring your money.