Does anyone what exactly "1. Any balance in and all future payments into your PayPal account may not be used to buy goods or services and must be transferred to your bank account in India within 7 days from the receipt of confirmation from the buyer in respect of the goods or services; and" mean? Can't we keep any balance in our PayPal account now?
This means you must withdraw all your funds to your bank account on or before T+7 days (T being the date of completion of transaction - assuming its for services delivered instantly online upon payment). This means you can keep the balance from a particular incoming transaction for up to 6 days for sure. This might not be applicable to goods as they need some time for the goods to be delivered to buyer where you might be allowed to hold the funds in your account beyond 7 days from the date of payment but less than 7 days from the date of receipt of goods confirmation from the buyer. Payment for Services example: If you receive $250 on Sunday, $160 on Tuesday and nothing on the other days, you can have the balance of up to $395 (approximating gross fee around $15 on both the transactions together) up to Saturday and up to $154 on next Sunday and $0 on next Monday.