Future of paypal in India
February 22, 2010 3:23am CST
hii, I heard that RBI is about to restrict the transactions of paypal in India.is it true?? Any one please do clarify my doubt...as India is one of the biggest countries where paypal is included in online money transactions...waaiting for the response .....
22 Feb 10
[i]PayPal does not have authorization in India to provide cross-border money transfers, a spokeswoman for the country's central bank said on Thursday. PayPal needs authorization to operate a cross-border money transfer service, under the country's Payment and Settlement Systems Act, Alpana Killawala, spokeswoman of the Reserve Bank of India (RBI), said Thursday. The Payment and Settlement Systems Act of 2007 stipulates that no person other than the RBI can commence or operate a payment system, except with an authorization issued by the RBI. Existing payment systems would cease to have the right to carry on their operations, unless they obtained an authorization within six months from the commencement of the act in August 2008. The act also provides for RBI's audit and inspection of the operation of authorized payment systems. As of Jan. 31, Western Union and MoneyGram were among the payment systems operators authorized to carry out customer-to-customer, cross-border money transfer into India. PayPal did not immediately respond to a an e-mail request for comment on why it had not sought RBI authorization.[/i] Hi Aditya! The above reason is what made the paypal to stop personal payments 'to and from' Indians. It is working on sorting the issue with RBI. It might take a few months. But PayPal allows Business Accounts to function as usual. You can checkout PayPal official blog for updates. Happy Mylotting!
22 Feb 10
Oh, I didn't know that the situation of Paypal is that difficult. I thought that they were having internal problems and not with RBI. It seems as if it is not easy to solve the problem or it will take a few months. I also heard that Paypal problem on transfering money to local bank accounts is fixed by February 15. Is it fixed or still going on? I am looking forward to tranfer some money to my ICICI local account by March 15.