Disheartening news to Paypal users in India:
Thousands of Service providers in India, who have customers in abroad countries, use Paypal account in order to receive payments from those customers. Though the charges (levied by Paypal and intermediary banks) are considerably high in comparison with other modes of receiving payments from foreign customers in to India, the service providers in India have been using Paypal as it is unianimously preferred by the clients / customers in the foreign countries.
While this mode of operation has been satisfactorily running, Reserve Bank of India (RBI) has been trying to implement guidelines to monitor whether money laundering or some other form of Foreign Exchange Management Act (FEMA) violations have been taking in place through this model. As an outcome of which, Paypal restricted its users in India in 2010, for withdrawing the monies in to their bank account in India, but later resolved with few conditions.
While ther Paypal users in India feel a little relaxed about the curb happened last year (and resolved a month later), there is another dishearterning news being announced by Paypal for the users in India for receiving and utiling the monies in Paypal account.
Here goes the mail information that Cogzidel received this morning (addressed to our CEO) about the changes effected by Paypal:
Upcoming changes to Paypal User Agreement for India with effect from 1st March 2011:
Dear Anand Nataraj,
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:
1. 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
2. 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.
The PayPal Team
More details can be found at www.thepaypalblog.com.