Paypal India: new guidelines effect from march 1 2011
By cambiste
@cambiste (1244)
India
March 12, 2011 1:14pm CST
The new guidelines set by RBI has taken effect from March 1, and seems to completely restrict paypal use in India.
They don't allow you to keep funds in your account for more than 7 days, don't allow you to send funds (hence no exchanging into LR, MB or other processors), and they charge Rs 50 (over $1) per withdrawal into your bank account.
This means that everytime i get even $10, i'm going to lose about $1.5 or more as paypal converts USD into INR with 3% as exchange fee/caution.
Is there anyway out of this? I know Paypal sends cheques that has no fees, but has anyone tried this?
Moreover, does anyone know what will happen if you do not withdraw the money in 7 days?
2 responses
@lampar (7584)
• United States
18 Mar 11
I guess this new guideline only affect Paypal account holder in India, it is just weird all other countries are not subjected to this rule. I only have to pay transaction fee whenever i receive payment in my Paypal account. That is all for U.S users. There is no 7 days withdrawal rule for us so far, you may well lose your balance if you don't withdraw within seven days on your balance, may be that will make Paypal annual revenue grow a bit faster with such a rule in place in this economies recession. 
@cambiste (1244)
• India
28 Mar 11
That's really cool. you have no idea how much paypal charges us for converting us$ into local currency. the currency conversion fees is like $1.5 per $50 withdrawn, as they have a 3% "cushioning" of the real-time rates. Recently my withdrawal was refused because my account was transferred, the written fees was $6.5, but the amount coming back was converted again into $US, and a total of $16 was charged for $180 withdrawn :(
Yeah, it's in accordance with the new Reserve Bank of India's guidelines.
i've read somewhere that paypal will automatically withdraw the balance into our bank accounts after 7 days are up, but that doesn't seem to be the case.
I've also heard that no withdrawal fees will be charged for withdrawing small or large amounts, which is a plus point. we used to shell out about $2.5 for withdrawing as fees.
@Xpertcomments (295)
• India
12 Mar 11
This really has been a bad news for all the people who have been working online in order to earn. PayPal was one sight that did help all the people looking to earn online to keep their money safe and secure and to withdraw them when and how much required. Now with the new guidelines I don't really know what RBI stands to gain...anyway I still hope something happens that changes the scenario for us.
1 person likes this
@cambiste (1244)
• India
12 Mar 11
The new guidelines appeared a few days after the swiss bank issue was on the media.
Yes, the 7 days rule is frustrating...it'll be tough for PP as well: they have to keep withdrawing money from all accounts of the world's second populous country into banks every 7 days.
Any idea what will happen if we keep the money in our account for over 7 days? Anyone tried? I withdrew on the last day of Feb, but it bounced back cuz i had transferred my account to another state and some details changed (btw they charges nearly 700 Rs for the incorrect info), so i had just recently sent it again with whatever new funds i got.
