Paypal India Changes the Rules

It will affect short payments like $1-10 because every time we receive this much amount it will go to bank account with in 7 days , banks charges Rs.50 per transaction less than Rs.7000 so where are we going to reach. I will transfer all my money to alertpay and when I would have enough mopney I will get it converted in paypal.

hi rojishroy this is what the mail i recvd from paypal says: In order to comply with the RBI Guidelines, our user agreement in India will be amended for the following services as follows: 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 2. Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction. We seek your understanding as we continue to employ our best efforts to comply with the RBI Guidelines in a timely manner. This clearly means: 1. we wont be able to buy anything online by paying thru PayPal 2. Whatever revenue/income/payment we receive in our paypal account has to be immediately transferred to our bank account. But what happens if we dont? will the amount be forfeited?

That is the worst case scenario in Paypal India. Do you mean that after receiving any money online, I need to forward it straight to Indian bank within 7 days? hmmm and what is the catch? additional charges? It seems that Paypal is just adjusting itself to RBI since your country is really strict when it comes to wired money due to terrorist plot so they have gotten so strict. I don't blame Paypal for this one. They are just following the rule of India. Too bad for freelance workers and definitely a pain in the ar*e.. I wonder what is next?

Hello Roji, I do not understand why RBI always bothers about the persons who are earning small amount through their hard work. RBI could have made some limit like $500 i.e. all these rules would be applied when your income would be greater than $500. Those who are earning less amount, would not be flowing their black money in real sense. The main culprits are the big and fat politicians and businessmen, who will still be able to manage their black money, and RBI would be helpless to put a hold on them. These strategies of RBI are always hampering the working of small scale freelancers who are making some money by hard work. RBI can still try to keep the track of the income earned by the freelance professionals like us, by verifying the site who is sending the money for outsourcing small tasks. And by the way,just by earning few dollars we are not going to make a heap of black money for us. On the contrary, we will lose some money because we have to withdraw it within 7 days, and suppose the person is getting payments for his services from different sites in first 15 days of the month, then he has to give twice the processing fees for transferring the money to his bank a/c. I do not think RBI is justified for making this rule.

When I read the responses to this discussion I understand that only small earners in my lot and similar sites who are worried about the new rules for some practical difficulties.The time limit of 7 days is too short a period to transfer the money to Indian bank accounts of those who are earning petty sums in sites by their hard work.The Govt of India is aiming at the sharks who have millions and thousands of dollers in Paypal account.The intention of RBI is laudible.You view the problem of black money which has caused innumerable hardships to common man in India.You and I are a small fish.There are number of corrupt politicians in India who are changing the very culture of India with their black money hoarded in banks abroad.They are the targets of RBI and not you or I.We should all appreciate the steps taken by RBI which is a wing of Govt of India.The people who make small money and keep it in PayPal can make a representation to RBI to look in the practical problems faced by small people like us and try to bring some modifacations in rules by extending the the date rtc and other similar hardships.I hope my friends in mylot will appreciate the spirit behind this response...

Paypal India is one of the payment processor. Ya that's right paypal changes the rules in India.Some guidelines are there by the guidelines for transfer of payment from Paypal.Now what added is the PAN number which one has to enter to make a payment to another Paypal user.

Hard to beleive that the government of India has time to worry about the pocket change people make here. Government control frieks!

I don't think that PayPal is the cause for this. Only RBI..They don't want to keep the money of Indians with the others like PayPal.Very good joke..They are not able to recover the tons of black money that are dumped in the international banks. Now they started to restrict like this. Because , in their view, Indian money should be in India..If they implement this terms or rules without making any change then PayPal can not be used as the Payment processors by the Indian members.Also the PayPal notification is not much clear. I hope that we can know much from the responses of the members who have better knowledge with PayPal and RBI.Thanks for starting this discussion.Now its the time to make alternative arrangements..Else we may to leave the on line sites.

Of course, it is big set back and BIG shock for Indian Paypal users, I received mail from Paypal about this last night, I thought it would be something about the kind of change that they did last time, like last time they said that we can not transfer money directly to Bank account, we have to order cheque for that. But at my surprise, it was something BIG change, and BIG shock for me and other Indian Paypal users.

Wow... i"m not a citizen of India, but if i was then i would surely start using other payment processors like alert pay or money bookers or any others (there are many good payment processors these days). I hope it won't happen in my country.

Definitely it is a big shock for everyone from India who uses the Paypal for the works like here. I think it will discourage many people to work on such sites now. People have to change their payment processor and I think I am also going to do that. I was happy with the PayPal till now but now I am not. I have one question in my mind, what will happen if I keep the money for more than one week in my PayPal account? If you don't know the exact answer tell me What do you think they will do in that case?

yesterday i tried to shop for which is in GBP i failed in that transaction i am ready verified using my debit card all my online will be lost for paypal charges any soluton for this?

yes but how can we withdraw the balance within 7 days,sometimes assume if we are getting money from different sites on different days,how can i make a unified transaction clearance from paypal.is it comfortable to you?

I dont think it's gonna effect me right now, because my paypal account balance is "Nil" .