Your bank may require you to provide documentary proofs ?

I guess documentation will be required for large transfers like 50K. As of now, I don't receive that much huge money from Paypal. I won't withdraw more than 10K at a time. Even if proof is asked, I guess I will be using invoice generated from free invoice sites.

 

Of course you will need to produce your PanCard number for any transaction above Rs. 50K. You may have to go to your bank and submit the PanCard details for that particular txn.

Actually, don't worry about the Purpose Code. RBI needs that code to categorize every foreign txn (inwards as well as outwards). For actual goods moving in or out of the country, there are other specific paper-work to do.

More Purpose Codes will be added to the existing list and the system becomes more efficient with passage of time. The Govt. needs to know the detail of every forex txn., and looking at the present day scenario, it is apt.

It's a different matter, as usual, where the actual big-wigs who deal without these rules will always get away, as usual again, without any rules, paper-work, or txn codes as they keep black-dealings in millions and billions...