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New RBI Regulations for PAYPAL Clients in India??!!!





k_s_baskar
When i logged into my Paypal account i instructed with some new modifications in my paypay account due to RBI Regulation. Can somebody explain in detail how it will affect to indian sellers and buyers using paypal as their major payment gateway.
Quote:
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:

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.
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.

Sincerely,

The PayPal Team
deanhills
I understand it as follows:

The Reserve Bank in India is making it more difficult for people to export goods and services over the amount of 500US$ when they are using PayPal.

The Reserve Bank also does not want you to accumulate funds in your PayPal Account. Once you've made a payment, the balance of the amount in your PayPal account must be immediately transferred to your banking account.
k_s_baskar
deanhills wrote:
I understand it as follows:

The Reserve Bank in India is making it more difficult for people to export goods and services over the amount of 500US$ when they are using PayPal.

The Reserve Bank also does not want you to accumulate funds in your PayPal Account. Once you've made a payment, the balance of the amount in your PayPal account must be immediately transferred to your banking account.

The worse thing i feel in this matter is i can't able to pay using paypay without credit card. I verified my account using my bank bank account. i can't able to pay by paypal using my bank account unless if i am not having sufficiant fund in my payapl account. the amount in my paypal will be transfered to my bank account but i can't able to pay so i'll suffer lot because i am not having not having credit card.
deanhills
k_s_baskar wrote:
The worse thing i feel in this matter is i can't able to pay using paypay without credit card. I verified my account using my bank bank account. i can't able to pay by paypal using my bank account unless if i am not having sufficiant fund in my payapl account. the amount in my paypal will be transfered to my bank account but i can't able to pay so i'll suffer lot because i am not having not having credit card.
I understand exactly, so the Reserve Bank of India obviously is discouraging its citizens from using PayPal. I don't particularly like PayPal very much as I'm one of its ex-customers who did not have a good experience, however, I would hate the country I am living in take away my choice of payment with silly Reserve Bank rules. The Reserve Bank in South Africa is even worse. They tie up all kinds of accounts such as your Income Tax, with your water and light account, to verify where you stay, and with your banking and investment accounts to verify whether you are paying tax on your investments and all of that nowadays get connected up with a cell number as well. Big Brother in capitals. Excuse being that there are so many dishonest people around, so everyone has to be thoroughly verified in triplicate. There are also limits on the amount of money one is allowed to take out of the country, and of course no limites on the amount you want to bring into the country.
saratdear
For sellers, what it essentially means is:

You cannot take orders for more than $500.
You cannot use the balance in your account to pay for anything.

I am irritated as well. Although I am not a heavy Paypal user or anything, I was saving up for buying a software. Now I can't use that cash for anything and have to transfer the small amount to my bank account giving a share as transaction fees.
deanhills
saratdear wrote:
For sellers, what it essentially means is:

You cannot take orders for more than $500.
You cannot use the balance in your account to pay for anything.

I am irritated as well. Although I am not a heavy Paypal user or anything, I was saving up for buying a software. Now I can't use that cash for anything and have to transfer the small amount to my bank account giving a share as transaction fees.
Isn't 500US very low? Perhaps people should ask the Reserve Bank to up the celing to at least 1000US? Question
ChrisCh
Does anyone know if this is more of an anti-money laundering thing, or if the government just wants to keep an even more watchful eye on every single traceable transaction occurring in India? ... Seems to me that if some crazy new restriction like this was introduced in my country (Australia), or the United States of American or the United Kingdom, it just wouldn't wash with people, and many would say that the government was taking away the payment choices of many... Although I suppose you could still just use your credit card... for now anyway... :p
saratdear
deanhills wrote:
Isn't 500US very low? Perhaps people should ask the Reserve Bank to up the celing to at least 1000US? Question

Outrageous comments are being raised all over the web, of course, but personally I think it is going to take a lot more than our rants here to change the regulations of the RBI.
ankitdatashn
It must be something to do because of the credit crunch I suppose, recession was painful for all... even RBI... Smile
deanhills
@ankitdatashn - I reworked and reduced your signature .... Very Happy
ankitdatashn
deanhills wrote:
@ankitdatashn - I reworked and reduced your signature .... Very Happy


Ohh mann!!, Cant believe it, it's so appealing and nice Smile

Thanks a lot friend, I owe a lot to you Very Happy

May God be with you kind person... I am changing my signature right away Smile Smile
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