I too feel the same way. But this seems to be very unprofessional way to handle this whole issue on part of paypal, which is operating on such a wide scale internationally. I don't think too many small ($$) transaction can be used for money laundering as is mentioned in this thread elsewhere about RBI policy. Of course, TAX does matter but as said somewhere else in this thread, funds normally goes (withdrawals) to regular bank accounts which are well verified as per RBI guidelines and RBI will act on that front rather then doing something silly at the frontiers. And most important is that, Paypal is not at all clarifying. Else it would have never let its own image tarnish for the sake of change in some country’s policy. But all guesses till some official notification to this effect comes out from Paypal itself rather than RBI or anyone else.
Yes, you are right. Every Indian bank account has complete verification of who ever it belongs to, photo id, residence proof, PAN no or form F16 etc. So, the bank account is fully verified with check on the account by RBI and the government of India. So, every withdrawal from and to paypal are in the knowledge of Indian authorities. Thanks and Regards
on that page first line is "All Regional Rural Banks (RRBs)". i think rural banks are those which are in villages. i dont think its apply to city banks.