Paypal Discrimination Against India Users

If you are living in India and have a papal account then:

* you can't send payment using paypal funds.
* you can't send funds to another Indian account.
* you can't send personal payments to anyone.
* paypal deducts around 5 % fee for every payment you receive ( i know that it does not charges any fee for sending/receiving money for some countries)
* money is automatically withdrawn to your bank, i.e you can't even keep paypal funds in your own account!
* the INR:USD transfer rate is 2-3 % less that what the international rate at that given day would be. If $ 1 = Rs. 60 on the date of transfer, paypal will transfer the money @ around 58 or less.

I would like to know if there is any rational reasoning behind any of the above points? This looks like a clear case of discrimination to me.

 

One of the worst result of not being able to transfer from account is I am forced to use my Credit card which again takes some charge. Also,due to this I am not able to transfer huge funds.. This is pathetic..

 

That's no point to complaint. The same product are selling different price in different country, you cant complaint about that, what you can do is accept it or leave it

 

Well, i can tell you, it's not only in India, but also in tens of other countries. So, how is it a discrimination?

 

It is not the mistake of paypal it is because of only rbi worst regulations

 

I am using paypal for 5 years now. Everything worked well till then except for bad dollar rate given by them. Then 4 years back RBI (The Reserved Bank Of India) made a rule that all payment gateways in india will not keep money in user account, and when user pays to someone with their payment gateway, the money will go from Credit Card not from user balance.
So all payment gateways including paypal had to change the working of paypal for indian users. RBI is to blame for this problem not paypal. RBI motto to bring this rule was because they wanted to keep a track on money usage by the users in payment gateways and also to fight black money problem, which is a big problem in india.

 

I have an idea that might work based on some quick investigation. Implementation is complicated but it might be worthwhile depending on the amount of fees you could save relative to the cost of this plan.
First you need to rent an address in the United States such as a private mailbox, and you need a passport or drivers license in your home country.
Apply for prepaid credit card from NetSpend or similar service that allows funding card with paypal. You will provide your Indian or other country drivers license or passport but you will provide the US address. They will mail the card to your US address and then you can have it forwarded to you via mail or federal express or similar service.
You apply for a PayPal account with the same US address.
You can login to your credit card company and obtain your routing number and account number for the debit card, this is like bank account information.
At PayPal you add a "Bank Account" which is the routing and account number for your credit card.
You add a "Credit Card" which is the credit card number on the prepaid debit card.
This should get you a verified PayPal account where when payments are made from the "Credit Card" you funded from your PayPal account.
I believe some fees will be less with this arrangement and you should not suffer all of the restrictions.
If you were planning to vacation in the US and wanted to have money available for your trip you might make these same arrangements so there is a reasonable explanation for these steps.

 

Paypal India is following the policies set by the RBI.

 

It;s not RBI. It's paypal. RBI offered them banking license but paypal refused to take because they have to follow RBI;s Rules. As per RBI law if any entity hold money for x amount of time then they have to pay interest on it and that;s why paypal auto withdraw every day.

To track online income RBI made paypal to disable paypal to paypal fund transfer for indian users

 

It's not discrimination, its called following rules of RBI, their hands are tied up!

 

I don't believe that its all due to RBI, But its because of Money Laundering which forces it to enact such laws.

 

PP is not much different from any other online banking system and we have net banking system working successfully in India. So, I fail to reason with your argument.

That's some useful information. Thanks for the input. What do you think about the USD:INR conversion rate that PP pays for bank transfer of funds. Its around 5 % less than the standard international conversion rate on that given day. I have always wondered how can this be justified and how-come no one has challenged this legally till date?

 

The 5% fee applies to every country, I'm pretty sure of that.

As for everything else, I don't know because I don't live in India. However, everyone I know who has been scammed in the past was done so by somebody in India...