Some pre announced policy regarding PayPal payment system is now implemented. Today I got an email states that I would not be able receive money to my paypal account since it did not have any of the following information.
Your PayPal account has been limited from receiving payments.
In accordance with Indian regulations, you are required to add a PAN,
purpose code and bank account in India to your PayPal account in order to
receive payments and withdraw funds.
Here’s what you need to do to lift this limitation:
1. Log in to your PayPal account and click Resolution Centre at the top of
2. Look out for a table in Resolution Centre which will show all the
required items that you need to add.
3. Add the listed items.
Please note, you can still send payments and make purchases online using
your card linked to your PayPal account.
I don’t know why but possibly RBI thought that every PayPal payments are illegal. Does RBI hate e-commerce particularly global transactions?
ClearTrip has mentioned in a blog post that how Indian banks are killing the future of e-commerce and shown that online transactions are dropped by 73% after implementing VBV (Verified by Visa) and OTP (One time pin). In recent past online forex trade is also banned by RBI
Beside this Elias Ghanem, PayPal’s managing director and general manager for Southeast Asia and India said:
The e-commerce landscape in India is booming, and more and more Indians are using PayPal as a solution. We see India as the next big market to develop, either from a buyers or sellers perspective
Lets hope we will have some good news in future. But the RBI policy needs corrections.