As per "Payment and Settlement Act 2007" All companies/institution working as payment processor/gateway has to take authorization from RBI within 6 month from the date it comes into affect. "Payment and Settlement Act 2007" came into affect from 12th August, 2008 that means yesterday was the last day till when any Payment processor can work without authorization. As of today following is the list of authorized payment processor/Gateway http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/PSS110210.pdf (Xoom is included in list) We have to wait till Paypal comes into the list (for bank withdrawals to start) and sure they will be there... All they need is to complete application process and other formalities.... I don't see any reason why they can't be authorized... Link for Payment and Settlement act 2007 related resources -- http://rbi.org.in/scripts/OccasionalPublications.aspx?head=Payment and Settlement Systems Act, 2007
Buyindiaonline.com Inc is sister concern of xoom and xoom still operates with same name as far as regulation and banking is concerned... List will not be updated but check the second link in original post there you will see new notification when new notification comes....
No I meant 6 months only, this act was formulated in 2007 but came into affect on 12th August, 2008 So they should have taken the authorization by last year 12th feb.... In first post I miscalculated the year where I written yesterday was last day... Now this explains why Paypal had problems last year same time, at that time they somehow managed to escape without authorization but Now RBI has given clear indication that they need to comply to this act and hence it is stopped....
There are some small processors in that list, i strongly feel paypal will be in that list soon, and there will no problems again in future.
I don't see Moneybookers, 2CO etc on the list as well. if PayPal only act as a payment gateway (for commercial transactions) there is no need for them to be on this list. however if they want to start personal payments again then they need license from RBI first. which is why they said it would take few months because getting this license from RBI is not easy and not days process..its months process. However the withdrawal issue is not related to this and thats why they said it will start soon (in the next few days).
Moneybookers is not giving you bank deposit in india... if they start doing that we would have dumped paypal and started using MB in last 14 days no need of having these discussion... They support card withdrawal which is processed by Visa or MasterCard(have authorization) For 2co They also uses one of their associate to send money by Foreign Telegraphic transfer, and I guess Moneygram is one who processes their transfer.. They are not registered in india and hence not giving direct transfer facility.... Similarly Paypal can register themselves as Payment processor or can use already registered company... Process is simple and it should not take more than a week if paypal agrees to RBI Policy
where are getting your half baked ideas from? have you ever used moneybookers yourself? I have been using them for quite a while myself and they do allow bank withdrawals for a nominal fee (Rs 115 only) and they send money to your bank account in Euros (not in INR like paypal does). the only reason we are not using them is because its not so much popular with our foreign clients. they don't want to use it. 90% of the buyers want to use paypal only as they are either familiar with it or they have account with paypal. they don't want to open a new account with MB since they are not familiar with it. now in regard to the 2CO i have also used their service in the past and it only has one flaw that they do not allow below 1 lakh withdrawals as they only initiate RTGS transfers as opposed to PayPal which initiates NEFT transfers. People like me don't want to wait for our money to grow into 1 lakh first and only then able to withdraw it. otherwise it would have been a nice choice since it also allows its users to use their paypal account. who told you that 2CO is partnered up with moneygram? (don't bring anything up and mislead anyone here unless you are pretty sure about what you are saying)
Pardon me for giving you half baked idea... The deposit MB makes in banks is "Foreign telegraphic wire transfer" which does not require RBI Authorization.... as they send money in their currency and not in INR... for 2CO and Moneygram I said "I guess they partnered" I am not misleading, you can ask 2CO how they transfer money through RTGS ? because if they don't have RBI Authorization and they have no partner then they will also be stopped...
Very interesting - I see some bank accounts such as SBI and PNb in that PDF. Some way to accept payments directly into these rather than Paypal? Also, how frequently is this PDF updated? In other words, if Paypal gets accepted tomorrow, can we really expect to see Paypal in this PDF right from tomorrow or day after, or would it take another few days or months for that?
Check the fourth column as well, this will tell you which organization is authorized for which kind of Payment Processing. You can accept payment in your bank by Direct TT / Wire transfer from any where the world. PDF will not be updated but a new notice will be issued for new list of authorized companies, which you can see at the second link in my post. Time required depends on PayPal not RBI. RBI can give the authorization within a day provided PayPal gives them what the want....