Paypal India changes agreement policy as per recommendations of RBI – New Restrictions and Limitations on Indians
Paypal India changes agreement policy as per recommendations of RBI – New Restrictions and Limitations on Indians
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.
Frequently Asked Questions:
Q: Why will PayPal not allow me to receive more than US$500?
Starting 1 March, 2011, PayPal customers in India will not be allowed to receive payments for any export-related goods or services for an amount exceeding US$500 per transaction. This change is to ensure that we continue to comply with the RBI Guidelines.
Q: Why will PayPal not allow me to keep money in my PayPal balance?
Starting 1 March, 2011, PayPal customers in India will not be able to keep money in their PayPal account balance. Instead, all money received into a PayPal account must be transferred to a customer's India bank account within 7 days from the receipt of confirmation from the buyer in respect of the good or services. This change is to ensure that we continue to comply with the RBI Guidelines.
Q: Will my customers be able to complete their checkout with their PayPal account balance?
We're glad that you offer PayPal to your customers. Unfortunately, we will not allow customers in India to send money from their PayPal account balance starting 1 March, 2011. This means that your customers will need to link a credit card to their account in before sending you money with PayPal. This change is to ensure that we continue to comply with the RBI Guidelines.
Q: The customers on my website are not able to complete purchase or pay via PayPal. Why?
Starting 1 March, 2011, PayPal customers in India will not be allowed to receive payments for any export-related goods or services for an amount exceeding US$500 per transaction. If you are listing products greater than US$500 per transaction then you may need to seek alternative methods of payment. This change is to ensure that we continue to comply with the RBI Guidelines.
Q: What is meant by receipt of confirmation from the buyer in respect of goods and services?
As an exporter of products or services abroad, you need to ensure that your buyer has received the product or services as per specifications set out on your website. As an exporter of goods, you may withdraw the balance to your bank account in India upon reasonable consideration of shipping time and other clearances such as excise and customs for the destination country. As an exporter of services, you may withdraw the balance to your bank account in India upon receipt of payment from your buyer into your PayPal account.
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
I do not understand why such limits,
Will it stop the outgoing of black money outside India?
Will it stop the coming of black money into Indian Share, stock markets?
Can not punish the big criminals, can not tell the names of criminals,
And make provisions that Honest, Hardworking Indians suffer more.
Below is the list of Alternative options to Paypal for India Users –
1.Moneybookers.com
2.Xoom.com
3.Alertpay.com
4.2Checkout.com
5.OboPay.com
6.PayPay.com
7.CCNow.com
always get the full details before using any company for money transactions.
Reality views by sm –
Saturday, January 29, 2011
18 comments:
This is the worst that could happen.
Indian govt is surely gone mad, stopping so many goods and service providers from working properly.
Web Development Chandigarh
sm, Thanks for this information.This is not good news. This will hurt serious small entrepreneurs...RBI has several other areas to keep check on unaccounted money. Recently heard about evasion of import duties on Chennai port..transaction amounts are shown less to save on import duties, this is just one example.
Hope RBI eases policy and spare sincere users.
what does RBI mean to achieve by doing so, i don't understand...... i wish this could not have been done on their part.....
”poor sanyiaa”
Such policies will hurt only the small and sincere exporters.
Anonymous,,
thanks.
Usha,,
thanks.
IRFANUDDIN,,
thanks.
Kirtivasan,,
thanks.
My favorite lucturer told about this -
"Manuvadi Govt saw young Indians getting richer irrespective of cast, so they want to stop that and make us much poorer and poorer, and only upper cast are allowed to do business."
sahil,,
thanks.
But i do not agree with this above thought.
its game of politics to divide Indians on the name of caste and religion.
This will affect very badly to sincere people running small businesses!
RBI should rethink on their new guidelines, for sure.
Anonymous,,
thanks.
Even I received an e-mail regarding this by paypal, since it was the only thing that i had to purchase online i am very angry on this foolish changes
Nrupen,,
thanks.
Hi,
I just wanted you to share this petition with you entrepreneurs, Bloggers & Freelancers. http://t.co/oswM2Cl
Please support us and help us spread the word.
Enfew,,
thanks.
Hi, could you please give information if credit card holders in India can make a payment to an Indian Paypal account? Even this was disabled the last time I checked. It's the final straw. It was very convenient to accept payments from my Indian clients who preferred C-Cards. Now it's impossible and switching to Moneybookers is a pain because they need to check so many things it's tiresome and a major waste of time (I'm still going ahead with it though).
Sahil, I'm "upper-caste", I'm suffering too. Don't be ridiculous.
Thanks.
Sahil, I'm "upper-caste", I'm suffering too. Don't be ridiculous.
For me India and Indian means every Indian irrespective of his caste,creed and religion.