Tech Drunk Staff Adding to the flak it has already been receiving, Paypal is now forcing funds withdrawal on Indian users. With PayPal doing daily transfer to India, the money in users’ accounts is sent automatically to their bank accounts. This is done without the permission of the users and even without prior notice! This means that one cannot leave money in their PayPal account anymore. As PayPal makes sure that the balance in a user’s PayPal account on that day will be automatically be withdrawn and transferred to the bank account attached with it.
This is the main that PayPal sent about this change. The point to note is that this mail was sent AFTER the money was sent back to the bank accounts.
With this move, people are highly inconvenienced. Prior to this, PayPal users in India were restricted on using account balance to make payments, but they had the freedom to withdraw from their account at their own convenience. But now they are being forced to withdraw the money to their bank account. Now the remaining balance is being transferred to your bank account from the Paypal account everyday. People are suffering losses, as they were waiting for higher exchange rates before making the transfers. Buy now they have the withdrawals forced on them.
The Indian user’s frustration doubled when they realized that this move by PayPal is for Indian users only. The reason given is Indian regulatory requirement by the RBI.
This is the new communication that Pay Pal is sending now-
“Dear Devesh Sharma,
As communicated earlier this year, we are working to implement RBI’s Guidelines regarding the processing of export-related payments. As a result the following changes will be made to your PayPal account:
- Effective 26th September 2011, you will not be able to receive overseas payments exceeding US$ 500 per transaction into your PayPal account.
- Any balance will be auto withdrawn out of your PayPal account daily.
We understand the impact this may cause to your business and seek your support and understanding as we continue to work together with the RBI. We will keep you updated as our conversations progress.
In case you have any queries, please log into your PayPal account and click on Contact Us at the bottom of any PayPal page.”
It is believed that Paypal wants to remain as a “payment intermediary” to escape the RBI regulations. That is why the daily transfers to users bank accounts. Indian users are miffed by PayPal’s latest move, and the automatic withdrawal forced on them has dampened their experience with the internet payments platform.
