Just got a mail today from paypal with this link in it. https://www.paypal.com/in/webapps/mpp/firc-certificate On that page it says Now isn't it confusing because one can't send money from an Indian paypal account to another Indian paypal account. So obviously it has to be coming in from outside of India. If it is already established that only foreign transactions are happening why would you again have to prove that you have recieved the payment in foreign currency. Thanks.