Paypal Levies $500 Per Transaction Cap on Indian Users, Citing RBI Guidelines

Today Paypal has sent out a 30-day advance notice to Indian users to "comply with the RBI guidelines" laid down for the online payments services. From March 1, 2011 onwards Indian PayPal users won't be able:PayPal willn't allow users in India to receive > US$500 payments for any export-related goods or servicesPayPal willn't allow Indian […]

Today Paypal has sent out a 30-day advance notice to Indian users to "comply with the RBI guidelines" laid down for the online payments services. From March 1, 2011 onwards Indian PayPal users won't be able:

  • PayPal willn't allow users in India to receive > US$500 payments for any export-related goods or services
  • PayPal willn't allow Indian users to keep money in PayPal balance -- All money received into a PayPal account must be transferred to a customer's India bank account within 7 days from the receipt of confirmation from the buyer.
  • Customers in India willn't be able to complete their checkout with their PayPal account balance. They'll need to link a credit card to their account in before sending you money with PayPal.
  • PayPal customers in India will not be allowed to receive payments for any export-related goods or services for an amount exceeding US$500 per transaction.

Here's PayPal's email:

PayPal India email

More Info: PayPal India

[tags]rbi,reserve bank of india[/tags]

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