Paypal and RBI are at it again and We Indians who earn money online are in trouble..
The new regulations that would be brought in by Paypal effective March 1st will cause a lot of problems if you transact money via Paypal.
Also Try: 5 Paypal Alternatives for Indians
People like me are clearly affected by these new rules which are going to be imposed from March 1st 2011. There are no good Paypal alternatives to overcome these problems that we are going to face.
This is the actual mail received by 1000’s of other Paypal Indian users like me today:
As part of our commitment to provide a high level of customer service, we would like to give you a 30-day advance notice on changes to our user agreement for India.
With effect from 1 March 2011, you are required to comply with the requirements set out in 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, our user agreement in India will be amended for the following services as follows:
- 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
- Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction.
We seek your understanding as we continue to employ our best efforts to comply with the RBI Guidelines in a timely manner.
We regret any inconvenience caused to you and hope the advance notice will enable you to plan your future use of our services accordingly. For further information, clickhere.
If you have any questions, please contact PayPal customer support by logging into your PayPal account and clicking on ‘contact us’ at the bottom of the page. We sincerely thank you for your patience and continued support.
The PayPal Team
To put it in simple words:
1) You cannot use Paypal to pay for anything online apart from withdrawing the money to your bank account.
2) You cannot receive any amount more than 500$ Per transaction.
3) You cannot keep the money in your Paypal account for more than 7 days starting from the time you receive it.
4) Paypal and RBI are clearly not in good terms and this is something that hinders the growth of Online business in India.
This is going to be there for a long time so our only wish is to see a good Indian Paypal Alternative that can satisfy RBI’s requirements for Online Money Transaction.