Paypal India RBI Recent Issue
If you are Indian PayPal users recent RBI guideline imposed by PayPal should be a big issue for all small online business owners and freelancers.
With effect from March 1st, you’ll not be allowed to receive payments exceeding $500 per transaction. Also, you won’t be able keep money in your paypal account. All money received into PayPal must be transferred to your Indian bank account within 7 days.
Also, Money you received for your work or goods can not be used for online purchase. All that money should be transferred to your bank account in India. If you want to make payment then your credit card registered into PayPal will be used for payment instead on balance you have in PayPal account.
Govt. should come up with a better solution on this issue otherwise thousands of business who uses paypal as payment processor will be shut down becuase they have no other choice and this would be a big loss for business owners.
I am not sure why RBI imposed $500 limit per transaction. Withdraw money within 7 days itself enough to bring all money into India because nobody will be able to keep money in PayPal account. I hope we would hear from PayPal soon what will happened if we do not transfer amount to Bank Account.
You can ask your client to send money in multiple transactions but people who are receiving money from advertisers agency or online freelance website and have transaction more then $500 per month will be certainly in trouble. They would forced to use other mode of payment.
Lets hope for the best. I hope we may hear good news in coming days.
RBI is trying to take control over Paypal, make it an Indian entity, so that they can collect more income tax.
Last Feb 2010, RBI brought some ‘blah… blah…’ notification which stopped electronic all transactions.
This Feb 2011, RBI brought another ‘blah… blah…’ notification which stopped sending payments to others, $500 max per transaction and 7 day withdrawal limit.
RBI is the culprit.
Time to speak up. Please file this petition against RBI over here:
Paypal India RBI Recent Issue | Bala-Krishna…