why so much currency conversion difference?

Guys,

Today is the 3rd day since I recd. money in my paypal account. I'm withdrawing money to my local bank account but the currency conversion rate is pretty less what paypal is giving. According to xe.com (reputed website), 1USD= 45 INR (20.03.2011) and paypal is giving us 1 USD = 43.50 INR (in addition to withdrawal fee).

Is it like that or happening with me only?

Please suggest.

Thanks,

 

This is how paypal earns money. And the rate is equal for all, not just for you.

 

Its same for every Indian who withdraws from paypal.

Paypal always gives less than the current exchange rate, infact even the banks too give less exchange rate if you will sell $ to them, this is for 2 things:

1) To compensate the immediate fluctuation in the exchange rate. (say the current rate is 45 and paypal gave u according to rs 45, and the day later the rate fall down to 44.50, then paypal will lose, isnt? and paypal is here to earn, not lose. )
2) To earn more, other than the payment receiving fees which they charge..

 

Thanks,

So if somebody withdraws $XXX, paypal earns good money !

 

yes the paypal rate is different from other rates. Paypal will not charge withdrawl fee you withdrawl more than 7000 INR.