PayPal has come up with a shocking news for the Indian entrepreneurs yet again by making amendments to its user agreement for India. Around the same time last year too, PayPal had made news by stopping personal payments to India.
In the recent changes announced by PayPal, which will come into effect from 01 March, 2011, there are some very strict amendments made for the Indian users, which has again created a buzz among Indian bloggers and Freelancers.
PayPal will not allow users in India to receive more than US$500 – 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.
PayPal will not allow Indian users to keep money in PayPal balance – All money received into a PayPal account must be transferred to a customerâ€™s India bank account within 7 days from the receipt of confirmation from the buyer.
Customers in India will NOT be able to complete their checkout with their PayPal account balance – Customers in India cannot send money from their PayPal account balance. They will need to link a credit card to their account in before sending you money with PayPal.
Overseas customers will not able to complete purchase or pay via PayPal for amounts above $500 – 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.
As given on the PayPal blog, PayPal has made these changes to comply with the RBI guidelines.
Below is the mail that I received from the PayPal team:
Dear Amandeep Singh,
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, click here.
If you have any questions, please contact PayPal customer support by logging into your PayPal account and clicking on â€˜contact usâ€™ at the bottom of the page. We sincerely thank you for your patience and continued support.
The PayPal Team
PayPal has long been making news among the Indian entrepreneurs and freelancers who provide their services online and rely almost completely on PayPal for their payments from international clients.
What do you think about this change from PayPal; are such steps from RBI going to make the flow of money into India transparent or is it only going to cause problems from the young entrepreneurs who are the so-called future of India? What is your take on this???