Paypal has been forced to restrict its services in India as a result of new transaction guidelines set by the Reserve Bank of India (RBI). In a bid to comply with the new rules laid out by the RBI regarding the processing and settlement of export-related transfers via online gateways, Dickson Seow of Paypal’s Corporate Communications team confirmed in a statement on the company website that Paypal will be altering its Indian services. From the beginning of March 2011, Indian merchants will no longer be able to receive payments of over $500 from countries abroad. Furthermore, Indian merchants will no longer be able to make purchases directly from their Paypal accounts. All funds must be transferred into Indian bank accounts within seven days of the confirmation of receipt from the buyer. "We truly value your ongoing support and we’re committed to providing you a high level of customer service," said Seow to PayPal's Indian users in the statement. "We hope this 30-day advance notice period will enable you to plan your future use of our services accordingly. We sincerely thank you for your understanding and patience as we continue to comply with the RBI guidelines in a timely manner." This is not the first time Paypal and the RBI have encountered difficulties with each other. Paypal had its payments suspended for a month in February 2010 until they received approval from the RBI. source : htt p://ww w.vrl-financial-news. com/cards- -payments/electronic-payments-intl/issues/epi-2011/epi-284/rbi-restricts-paypal-services.aspx
many of us use paypal account for online transfers. paypal has eased the means of transactions. definitely restrictions on paypal services would cause some discomfort amongst the users but since the service is still on, paypal will still be favorite of the most.
