New Regulations!! Proof that RBI is forcing Paypal and Indians !!

Read this: http://www.rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=6107

Of late, Online Payment Gateways have emerged as a popular mode of facilitating e-commerce transactions. Some of these Online Payment Gateway Service Providers (OPGSPs) have also been facilitating cross-border transactions. We have recently reviewed the service model provided by these
OPGSPs with reference to the provisions of the Foreign Exchange Management Act (FEMA), 1999. It was observed that a few OPGSPs have not only facilitated conclusion of the transactions but also allowed exporters to retain the export proceeds abroad without repatriation resulting in violation of the provisions of FEMA, 1999.

In this case, OPGSP is "Paypal" .

Now, read carefully below...

2. Accordingly, it has been decided to allow the Authorised Dealer Category- l (AD Category-l) banks to offer the facility of repatriation of export related remittances by entering into standing arrangements with OPGSPs, subject to the following conditions:

(i) The AD Category-I banks offering this facility shall carry out the due diligence of the OPGSP (Paypal) .

(ii) This facility shall only be available for export of goods and services of value not exceeding USD 500 (US Dollar five hundred).

(iii) AD Category-I banks providing such facilities shall open a NOSTRO collection account for receipt of the export related payments facilitated through such arrangements. Where the exporters availing of this facility are required to open notional accounts with the OPGSP, it shall be ensured that no funds are allowed to be retained in such accounts and all receipts should be automatically swept and pooled into the NOSTRO collection account opened by the AD Category-I bank.

....

(vii) Banks shall satisfy themselves as to the bonafides of the transactions and ensure that the purpose codes reported to the Reserve Bank in the online payment gateways are appropriate.



NOSTRO account "means" one bank holds with a bank in a foreign country, usually in the currency of that foreign country. Thats citibank used by paypal.

Definite proof that RBI is screwing and paypal is simply forced to implement.
I am sorry, after reading this, i dont blame blame paypal anymore for all the mess. I blame RBI and their policies for not being business friendly. I always wanted to be banker, but i never became banker. Atleast my skills help people in DP.

 

I'm blaming RBI and their corruption from first. RBI is using its power to get some profit from other payment gateways.

 

What really pinches me is they are not even allowing to hold funds for 7 days and then withdraw manually. It irks me!!
I am so worried about negative balance and refunds because of this daily autowithdrawal.

 

The daily auto-withdrawal rule affects only Indian PayPal user accounts.

Did you notice that there aren't such rules in other countries like US, UK, Australia, China, Germany, France, Russia, Italy, Mexico, etc. If there were, then people from these countries would have posted regarding auto-withdrawal rules.

Other countries don't have such auto-withdrawal rules - why only India?

 

I think all Indian government system are corrupt.

 

Indian rupee is still not a freely convertable currency and still our govt doesnt like sending money abroad, because they lose dollar reserves. if i want to pay somebody outside india, there is no easy way out. this hurts business. on the other hand, our govt loves NRIs and businesses who bring foreign money to india. this adds to dollar reserves. hmm! nice strategy!

 

Thanks for sharing

 

I was thinking this from start, Now You confirmed it. It seems that RBI playing in the hands of Indian Banks to force People to get Credit Card. But policies maker of RBI are moron. I am sure they never think about if People can afford CC then why they will use PP. And second think they didn't think is that ,by these rules they even flowing Much Dollar from India. Its because people are using indirect methods to pay which using even more fund than normal.

 

Because we live in a crap country.
These idiots in RBI know nothing and implement stupid rules.

 

RBI made paypal to do all this mess on us so guys atleast its giving true service