Paypal Issue in India

New Update on Paypal Blog

New Bank Withdrawal Instructions for Our Customers in India

In wake of recent issues Paypal users in India have been facing over last month for remittances of personal credits into their Indian bank accounts, Paypal today morning apparently has sent this e-mail to “affected” users:

PayPal

Dear Romil Javed,

We have been diligently working with the RBI and our business
partners to resume Indian bank withdrawals for the thousands
of Indian businesses who depend on PayPal to sell their goods
or services in the global marketplace.

Today, we are happy to announce that the RBI has allowed us
to continue local bank withdrawals for settlements for exports
of goods and services.  We are currently making changes to
comply with Indian regulations for settlements for exports of
goods and services, and we anticipate that, as of Wednesday,
March 3rd, customers will be able to use our
bank withdrawal service.

As part of the changes, you will be required to fill out a
new field entitled 'Export Code' when you request a withdrawal.
This information is required under the current laws of India in
order to identify the nature of cross-border merchant transactions.

On Monday, March 1st, we will be back in touch with specific
instructions on how you can move your money into your bank account.

Moving forward, the RBI has told us that PayPal needs specific
approvals to allow personal remittances to India, which we
currently do not have.  Until we get these approvals, personal
payments into India will remain suspended.  However, if you are
an exporter, you will continue to be able to use the PayPal
service for payments of goods and services.  In fact, with the
changes we are making to our system, PayPal is now set to be a
more powerful engine for exporters in India.  With purpose codes
for export transactions and FIRCs (Foreign Inward Remittance
Certificates), you should now be able to get the export
related benefits you seek.

You can check the PayPal blog for additional updates.

www.thepaypalblog.com

We thank you for your business and for your patience during
the past few weeks.

Sincerely,

PayPal

Now, it remains to be seen if RBI levies certain charges on us “exporters” who have been doing our little bit in accumulating foreign exchequer for India.

The previous updates can be found here:

  1. Paypal India Block Leaves IT Guys High & Dry – Need For An Indian Paypal?
  2. The Paypal Blog

Will post more on this as soon as I know more on this issue.

New Update on Paypal Blog

New Bank Withdrawal Instructions for Our Customers in India

4 thoughts on “Paypal Issue in India

  1. This news come as a morning surprise for me…I thought it started from today but after reading Blog post on paypal blog, realize they are expecting it to start from 3rd .. Lets wait and watch

  2. Recent issues with PayPal withdrawals to Indian Banks & more over payments just randomly being reversed back to the senders will have a deep impact on PayPal’s reputation. It raises so many questions like (THIS MIGHT CONTAIN SPOILERS):

    A) Should we trust PayPal in future?
    ANS: ABSOLUTELY NO

    B) Are they really concerned about our Money?
    ANS: ABSOLUTELY NO, After a long period of two weeks we receive an apology letter stating that “We are sorry we goofed up opps!”? and stuff like “Your money just got sacked since this is nothing serious to us we are just doing a drill of playing a game with your hard earned money”?

    C) Is RBI responsible for this?
    ANS: UNQUESTIONABLY MAYBE, So, Question is why this is happening in India and nowhere else? Question is why we are being kept behind curtains and dark? Question is why Moneybookers and other Payment systems are working but PayPal is not? you just want to exclude the RBI out of this since they are least concerned with us. Everyone failed here! RBI off course you cant expect them to give you a comforting truth so a comforting lie should suffice you! And PayPal Ow man no shit a multinational company failing to inform and notify of an issue of this magnitude. That was an AWESOME combination of pure frustrating, destroying trust & spreading chaos.

    D) So what does PayPal tell us now?
    ANS: “We are sorry, but your valuable to us so please give us another opportunity to goof up and play some more engaging games with your money” and “We just love to make more profits by giving you a pathetic exchange rate”

    D) What now?
    ANS: DTA (Don’t Trust Anyone) Get your sleeves up against them and find your own ways to get paid over any other medium that serves better, communicates better and keep them in plenty. If one fails other should work out.

    Ive let all my clients know about this issue and advised them (in advance unlike PayPal) to switch over to some other Payment system which is reliable, responsible and does the main thing “ACTION” at PAR. The truth will probably be dead and berried RIP about what happened because the shame and disgust they bring upon themselves is apocalyptic now.

  3. @Harsh
    Yeah, lets hope its smooth in future and without extra deductions.

    @Anirudh
    Mate looks like you / your firm saw burnt due to this issue. The only issue is there are no better alternatives to Paypal right now, if you consider all the aspects, reliability, usability and how it has leveraged itself until now.

  4. YET AGAIN PAYPAL IS STOPPING ELECTRONIC FUNDS TRANSFER BEWARE GUYS……… WITHDRAW YOUR FUNDS NOW!!!!!

    Orig article at PayPal offcourse you gotta take the pain in the rear to find it your self:

    https://www.thepaypalblog.com/2010/07/update-on-paypal-accounts-for-india-users/

    ————————

    Hello Zoe,

    Good morning.

    I wanted to make sure you aware of a notification that was sent yesterday to customer’s in India. I have included the notification below.

    In accordance with regulatory instructions, we would like to notify you about a change in our withdrawal functionality in India starting on August 1, 2010. At present you can request for either an electronic or cheque withdrawal of funds from your PayPal account if you are an India user.

    From July 29, 2010 onwards, you will only be able to request for a cheque withdrawal of funds from your PayPal account.

    While we are working hard to restore the electronic withdrawal service, in the meantime, we are bringing this matter to your attention so that you can plan your future withdrawal activities accordingly.

    To request for a cheque withdrawal:

    1. Log into your PayPal account, click on ‘Withdraw’.

    2. Click on the ‘Request a cheque from PayPal’ link.

    3. Enter the withdrawal amount and select your mailing address, then click ‘Continue’.

    4. Click ‘Submit’ to confirm your request.

    In order to help you with this change and until further notice, we will refund the $5 USD cheque withdrawal fee to you for cheque withdrawals made on July 29, 2010 onwards.

    For any questions, please log into your PayPal account and click ‘Contact Us’ at the bottom of the page.

    We apologize for any inconvenience caused from this change in our withdrawal functionality. We will provide ongoing updates to you here. We thank you for your attention and patience as we work tirelessly to resolve this situation as quickly as possible.

    Please let me know if you have any questions regarding this change.

    Sincerely,

    Carolyn Anderson / Merchant Account Manager
    direct 866-923-3778 / cell 402.960.9871
    fax 303.395.2821
    office hours 7:30 AM – 4:00 PM CST Monday – Friday

Leave a Reply

Your email address will not be published. Required fields are marked *