More limitations with PAYPAL ACCOUNTS in INDIA 2011

As per a recent news letter sent by PAYPAL to all it’s users in India there are 2 more limitations to be added to Indian account holders.

With effect from 1 March 2011, as per the notification of the Reserve Bank of India governing the processing and settlement of export-related receipts facilitated by online payment gateways (“RBI Guidelines”).

In order to comply with the RBI Guidelines, PAYPAL user agreement in India will be amended for the following services as follows:

1. Any balance in and all future payments into your PayPal account may not be used to buy goods or services and must be transferred to your bank account in India within 7 days from the receipt of confirmation from the buyer in respect of the goods or services; and

2. Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction.

3. Indians with PAYPAL cannot pay you to your PAYPAL (If you are Indian too)

Sign up for PayPal and start accepting credit card payments instantly.

Probable Solutions for these PAYPAL issues

1. Find another alternative for receiving payments for your products or services worth more than 500$.
2. Try to accept payments in chunks and make sure none exceeds 500$.
3. Avoid doing bigger transactions on paypal 🙂

Thanks to PAYPAL for trying it’s best to comply with Indian RBI regulations and providing normal users great, easier payment solution.

CLICK HERE to Read More on PAYPAL website

  • You seem to be un-moved by this ridiculous move by paypal.

  • 1.No donations to indian customers
    2.No personal payment
    3.pan card is mandatory
    4.all money received into a PayPal account must be transferred to a customer’s India bank account within 7 days.
    5.PayPal account may not be used to buy goods or services.

    Then why they offer service in india?

  • Paypal is not the only payment gateway which provides services in India. You can check out- to find out other alternatives.

  • Remit2India seems to be a good alternative. Moneybrookers and seem to be the best for Indians.

  • Vago

    I always liked to leave my money in Paypal for purchases elsewhere or to let it build so I didn’t have to pay the <7K service charge withdrawal fee. RBI must have seen how many funds were lingering in Paypal's cache and this is their way to get them into India banks. It makes sense but it's causing a lot of resentment as we should be free to spend our money as we choose. Another underhanded resolution implemented to compensate the Indian bureaucracy. The playing field is global…time for RBI to get on board.

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