Hello, Why RBI made this rule for paypal??..Money is money, so what makes the difference after adding a Credit Card? Regards, Hashif
Because RBI can't trace further if you send using your paypal balance but they can trace if you send using credit card as far as i know. DON.
Guys its not RBI who is at fault its paypal who is not following the rules , RBI is enforcing the same rules which all other finance houses in india have to follow , also Paypal is happy to follow the same rules in europe and operate like a bank but not in india. RBI says if you keep indian citizens money for more than a peroid of 7 days , you ought to pay interest to the depositer, Paypal decides not to pay interest and instead started issuing auto payment everyday ( and in turn get chunks of money due to forex rates ) { paypal follows these rules in Europe } RBI has another rules that any transaction above $500 has to be reported to them , all the banks and finance house in india follows that , just in US IRS mandates any transaction above $10000 to be informed. Paypal again to circum vent this regulation added a $500 cap on all indian paypal account. really hope a better PayPal alternative comes up , Paypal sucks in India big time.
There is tons of way to trace earning, most commonly PAN no., so certainly there is some other reason
Youy can send Maximum $3000 in one go. No matter how many transaction you make. As one of my client send me $10200 in 4 part with the gap of hardly 1 min. You can withdraw amount unlimited time. The only reason for withdrawing money to bank account and make payment only from credit card is just to make sure that your transaction come in the notification of bank / RBI. This ways all the money we receive or make payment remain notified and we become liable to pay tax on it. Previously, we receive payment in paypal and make the payment directly from it in the form of USD only that way those payments never goes in the records of the government.
It's all because both RBI and PayPal India wants to make more money. When you use credit cards, they make money from - Currency Conversion Charges - Service tax (12.30%) - Bank charges for using credit card (3.5%) - Paypal fees You can withdraw to bank account, but can't pay using the same bank account.
Indian banks are currently paying hefty charges for VISA and Mastercard processing charges. According to the sources, they charge around $30,000-$50,000 as one-time fee and around $10,000-$30,000 quarterly fee from banks. RuPay wants to change that and bring out there own debit/credit cards, thus saving costs. Basically, RuPay is India's alternative to VISA and Mastercard.
In Bangladesh paypal says the will launch their service from September. But still it has not come to Bangladesh. Bangladeshi freelancers need urgently paypal in Bangladesh. One question what is the date will paypal will launch in Bangladesh? Anyone knows?
is it possible to make transactions like purchasing online by attaching your visa or master card DEBIT card to your account, without Credit Card??
Yeah, you can use HDFC netsafe virtual credit cards to pay online..these credit cards are created from Debitcards(International Debit card of HDFC)
Is it?..it is very disappointing for them, even we are disappointed because of some paypal restrictions and tax issues..
Are you sure about 12.30% service tax on cc. This is just due to control black money. But they did not control it. Therefore most of the virtual visa company withdraw their service from India like neteller,paioneer etc in 2011. They did not control scam 1 Lakh crore or 1000 crore. They want money from middle class family. Therefore rich become rich and poor become poor.
See Section F at Service Tax site. Services provided by Credit/Debit or other payment card providers are taxable.