Reserve Bank of India (RBI) has forced Paypal to amend it’s user agreement in India. This agreement will be effective from 1st March, 2011.
Paypal has started sending e-mails to it’s Indian users about this notification.
What will be the impact of the agreement?
Paypal will not allow Indian users to keep money in their account:
Paypal India users will not be able to keep balance in their account starting from 1st March 2011. Users must withdraw money to their bank accounts within 7 days of the receipt of the amount. They shall not be able to use this money to buy other goods/services.
Paypal will not allow Indian sellers to receive more than $500 in exchange of goods/services:
PayPal India users will not be allowed to receive payments for any export-related goods or services for an amount exceeding US$500 per transaction. If you want to receive more than $500, you must find another payment method (Bank Transfer, MoneyBookers, LibertyReserve, etc).
Last year, Paypal had halted bank transfers in India. This was also in compliance to the RBI Guidelines. This time also RBI has set guidelines due to which Paypal has to comply to it’s rules.
Most bloggers and entrepreneurs will be facing tough problems due to this agreement. Read more about the news on Paypal’s site.
{ 3 comments… read them below or add one }
The thing is that there is a bunch of retarded and lazy people occupying RBI. A bunch of idiots just like the scammers in our government. They don’t care about the online world.
They are illiterate men who have no idea about where the internet has reached these days. They still have the mentality of the 1950’s. Bunch of idiots the RBI and government men are.
Don’t know what to do next, Many people like me are worried about their online business because of this new rule but hey let’s now lose all our hopes, Paypal is no the one and only company there are many out there which can act as an alternative for Paypal, list is in my commentluv link..
Wow, this is lame, I can’t believe PayPal would do this to so many of their customers. They are going to be losing many users to other companies most likely, how sad.