Tech Drunk Staff PayPal is making amendments to comply with the Reserve Bank of India laid guidelines and regulations. Come March 1, 2011, Indian PayPal users will not be able keep money in their PayPal accounts. They will also be unable to receive payments of more than $500 per transaction. Paypal has sent out a 30 day advance notice e-mail on 29 January, 2011 to its Indian users based on the new guidelines.
This is how the e-mail reads:
Dear user,
As part of our commitment to provide a high level of customer service, we would like to give you a 30-day advance notice on changes to our user agreement for India.
With effect from 1 March 2011, you are required to comply with the requirements set out in the notification of the Reserve Bank of India governing the processing and settlement of export-related receipts facilitated by online payment gateways (“RBI Guidelines”).
In order to comply with the RBI Guidelines, our user agreement in India will be amended for the following services as follows:
– 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
– 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.
We regret any inconvenience caused to you and hope the advance notice will enable you to plan your future use of our services accordingly. For further information, click here.
If you have any questions, please contact PayPal customer support by logging into your PayPal account and clicking on ‘contact us’ at the bottom of the page. We sincerely thank you for your patience and continued support.
Sincerely,
The PayPal Team
Therefore PayPal User Agreement for India has three main amendments:
- Indian users will not receive payments for more than $500 per transaction.
- Indian users will not be able to keep money in their PayPal accounts.
- Users will now have to link their credit cards to their PayPal account for any money to Indian PayPal account users.
These latest amendments (not to forget last year’s discontinuation and restoration of the e-withdrawal option), according to the RBI, are being made to be complied by PayPal in order to meet requirements for facilitating export-related receipts. This means, Indian PayPal users will find it inconvenient to use the PayPal service and will have to look for other alternatives.
