India Says PayPal Not Authorized for Money Transfer John Ribeiro, IDG News Service Feb 11, 2010 11:00 pm PayPal does not have authorization in India to provide cross-border money transfers, a spokeswoman for the country's central bank said on Thursday. PayPal needs authorization to operate a cross-border money transfer service, under the country's Payment and Settlement Systems Act, Alpana Killawala, spokeswoman of the Reserve Bank of India (RBI), said Thursday. In a Tuesday blog post PayPal said that the suspension of personal payments to and from India would continue for at least a few months until it resolves questions from Indian regulators. "We temporarily suspended these services to respond to enquiries from the Indian regulators, specifically questions on whether personal payments constitute remittances into India," the blog post said. PayPal notified users on Saturday, through another blog post, that personal payments to and from India, as well as transfers to local banks, had been suspended. Customers can still make commercial payments to India, but merchants can't withdraw funds in rupees to local banks, the company said. By Tuesday, PayPal said customers should be able to withdraw funds to a local bank within a few days. The Payment and Settlement Systems Act of 2007 stipulates that no person other than the RBI can commence or operate a payment system, except with an authorization issued by the RBI. Existing payment systems would cease to have the right to carry on their operations, unless they obtained an authorization within six months from the commencement of the act in August 2008. The act also provides for RBI's audit and inspection of the operation of authorized payment systems. As of Jan. 31, Western Union and MoneyGram were among the payment systems operators authorized to carry out customer-to-customer, cross-border money transfer into India. PayPal did not immediately respond to a an e-mail request for comment on why it had not sought RBI authorization. The online payment company may also have to tighten its verification of users of personal accounts in India to meet new government regulations relating to curbing money-laundering, according to an analyst who declined to be quoted. Killawala declined to comment. The Indian government is worried that intermediaries like PayPal are being used by freelancers who do not pay income taxes for income earned abroad, and also by financiers of terrorists in India, the analyst added. PayPal is popular in India with freelance software developers and content providers. The move by PayPal has inconvenienced a number of its customers who receive payments from abroad through PayPal. The company has come in for criticism on various Web sites, including its blog. "It's a shame PayPal is doing this now. You would believe a company as big as them would sort out such issues before they began offering their service," said a post from a user named Gaurav on PayPal's blog. Source: http://www.pcworld.com/article/189120/india_says_paypal_not_authorized_for_money_transfer.html
Its old news now. We are here from last 24 hrs, you just wake up. Good morning. :d if thats the problem, then why indian government have not control xoom transactions yet.
Xoom has necessary authorization taken on 18th Jan.. RBI not going to stop xoom check this -- http://forums.digitalpoint.com/showthread.php?t=1693022 All you need is to make sure that they allow your transaction
How it is autorized? Is there any tax information in xoom signups? No. It is just mediator , its usa-indian joint venture company. How RBI can get tax information or any transaction information from this? Any one can get payment in his paypal account and can transfer amount in his bank account by paypal->xoom->bank. Where is control?????
Authorization required is not about tax but it is about work as payment processor ..... Check my above post and you will know everything you want to ask...
Sounds terrible for the most of the Indian's however, there is something I don't understand just yesterday I received a payment from someone in India and also I send some money to one, everything wents out for good... so does that mean not all accounts are affected by this?
RBI have no tax information about the freelancers, who got paid by paypal directly to their bank accounts. Read RBI statements, they have told that they have stopped paypal to get tax info about the transactions. not to fill forms. ((((((form filling is job of Freelancers not for paypal.)))))))
When did RBI given any statement on this ??? All we have is news quoting RBI, bit no official statement from RBI yet ?? Can Anybody provide me a RBI statement link ?? (official)
Sources: http://www.pcworld.in/news/paypal-not-authorized-money-transfer-rbi Google Search : http://www.google.co.in/#hl=en&sour...rs+and+content+providers.&fp=58ffa43166db4145
None of these are RBI statements, all these are news reported by different news companies... Official statement from RBI will be posted on RBI site, unless you have that you can not say that it is RBI statement
Ask RBI and get the answers. You'r really an Indian. Always Late. Have you checked that with google search results, this news is on every blogs.
My Previous post was for this statement of yours... Stop spreading rumours, RBI never gave any statement even though few blogs says so, that's their interpretation not RBI statement
Most of all paypal users are now happy with XOOM. Many of all paypal users are dont know how to withdraw by XOOM. Few person are like you, are still wasting their time in discussion.