Future of paypal in India

[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!