According to RBI’s new guidelines we are not able to make an online transaction more than US$500 and also we can’t hold money in our PayPal account for more than 7 days and we must have to withdrawal money if we get from export of goods or services.
In the word of PayPal:
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
This will be effected from March 1st, 2011
Earlier, due to â€œverified by visaâ€ and â€œMaster card Secure codeâ€ has affected their business since PayPal do not support either â€œverified by visaâ€ or â€œMaster card secure codeâ€. Due to this We are not able to make any transaction via Debit Card from India. Now according to new guidelines they will loose a lot of business.
It was also better for blogger like me to sell some some ads and get the money to my PayPal account and pay our hosting bills and other thing. Now we must have to withdrawal money to our bank account and then using a credit card pay such bills (e.g. hosting bills). It will be much lengthier process and will take a long time.
I think PayPal will lose a lot.