Anyone else got the email alert after withdrawal (Indian Paypal Users) ??

How'd you know this? If PayPal is registered in India, they have to answer RBI and RBI has full power to show-cause them.

 

Yea I read that apparently when I was writing my post, you made yours Hope this is fixed asap. Thanks for the input though.

 

This means, we cannot even send money to our family members or others even with a payment?

All transactions have to be involve with purchase of goods?

 

@ digitech
here it is: moneylife.in/article/8/3591.html

 

@ifreakz

Sorry..you are wrong..even payment made with option "Goods" and with shipping address are also getting reversed...All transaction to India are getting reversed...

 

Heres what others have discussing techcrunch.com/2010/02/05/paypal-halts-india/comment-page-2/

 

Personal / Premiere / Business - everything's getting affected

 

Excerpts from the moneylife article

Last year in November, the Indian government had issued a notification (No No.13/2009/F.No.6/8/2009-ES dated 12 November 2009) for prevention of money laundering. Under this notification, the Reserve Bank of India (RBI) has asked all banks and financial institutions to maintain proper record of all transactions and verify identity and address of a non-account based customer or a walk-in customer.

Payments to and from PayPal to its account users in India may also involve the foreign exchange maintenance act (FEMA) that has been under a cloud over the black money issue. On Friday, many renowned personalities had filed another petition in the Supreme Court seeking a direction to the Indian government to bring back unaccounted black money to the tune of around Rs65 lakh crore (Rs65 trillion) stashed away in banks abroad.

Although PayPal provides money transfer service to and from India, neither the company nor its account holders pay any tax on the transaction. When Moneylife contacted the RBI to know about the PayPal issue, an official said,”We have no idea why this is happening. PayPal doesn’t come under RBI’s purview.”

The question is then how can the country receive money, in foreign currencies, without any accountability and supervision? Some of the comments on techcrunch.com also say that many Indian account holders ask their payee to make the payment as a ‘gift’ rather than payment for services to avoid PayPal fees. One such comment said: “A lot of business must be transacted in India via PayPal—business done with personal transactions. So a money-hungry Indian government is aggravated at some perceived revenue loss (taxes, customs, etc.) and (has) put pressure on PayPal to stop the payments either directly or indirectly.”

Without RBI's knowledge how can the government restrict PayPal?????

If this is the case, Paypal would have made a notification and blamed India Government...This is not the real issue..

 

Well Ria, I am aware of that.. But from your post, it seems that, no other transfers other than shipment of goods will be allowed to/from indian buyers.
A New way of gaining more money from fee already heh?

 

I strongly recommend using Alertpay as an option. If we can ask our buyers, hosting providers to implement this. We all can breathe for once. Paypal has always been playing monopoly with people's money. I hope someone can involve the media or press people in this and get a global picture. What do you guys say?

 

This is interesting as posted by one of the user.

 

I don't know why this issue has not risen the the television media or has it? I am currently following this topic from office (I am at office) I will check out the TV when I get back hope. Darn, this is ridiculous

 

@ifreakz
no other transfers other than shipment of goods will be allowed to/from indian buyers.

Not my opinion...But from Paypal e-Mail..and their double standards...They are reversing all transactions to India

 

I have reported to few media channels about the issue and referred this thread to them. Lets hope the issue gets more recognised and our problems may to an end!!!

 

Some people are very funny!!!

Anyways I asked on of my customer to via XOOM and money just credited to my bank account.

 

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Paypal is not a banking institution or lending institution in India hence it is not bound by RBI regulations. Paypal India Pvt. Ltd is just another company which uses Deutche Bank to settle transactions using NEFT.

The present scenario is just like us using NEFT (fund transfer) to send money to other bank accounts in India.

If paypal india is brought under RBI purview, it has to maintain credit with RBI just like other banks and they have to clear NEFT payments within 24 hours and RTGS within 15 minutes.

 

Everybody seems to be shooting in the dark with their own assumptions and logic to provide a basis to the current mess.
I wonder what prevents Paypal to put up a notice on their site and come out in the open as to what exactly is the issue and what is causing them the delay in sorting the matter out?

It is really a shame that such a big company with such large base/worth is taking its customers for a ride!

Regards,

RightMan

 

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