Earlier this month, PayPal reversed all ‘personal paymennts’ to-and-from India, with following notification “Your payment of xxxxx has been sent back to the sender of the payment. We reversed this payment because we have stopped allowing personal payments to be sent to or from India. If this was a payment for a purchase of goods or services, and not a personal payment, then you may contact the buyer and have him or her resend the payment as follows: (a) click the Send Money tab, (b) select “Goods,” and (c) provide a shipping address. If this payment was a personal payment such as a gift, then we have requested that the sender find another payment method until we restore personal payments to and from India.” Here’s the PayPal send money screen:
PayPal ‘personal payments’ suspension in India will now last at least a few more months! anounced PayPal:
1. Why did you suspend local bank transfers and personal payments to and from India?
We temporarily suspended these services to respond to enquiries from the Indian regulators, specifically questions on whether personal payments constitute remittances into India. We’re working with the regulators and our bank processing partners in India to get this resolved as quickly as we can.
2. When will personal payments be turned back on?
The regulators recently let PayPal know about revised licensing rules that we are now actively engaged in securing. Personal payments to and from India will be suspended for at least a few months until we fully resolve the questions from the Indian regulators.
3. When will local bank withdrawals be available?
Customers should be able to withdraw their funds to a local bank within the next few days. In the meantime, we’re going to restore the money into the PayPal accounts of any customers in India who have initiated a recent withdrawal, so they know that the money is safe in their accounts. Customers will also be reimbursed for any withdrawal fee charges.
More Info: PayPal blog