Paypal and RBI - why always the tiff?

Hi Mimpi! I withdrew some amount in the month of March and fee of Rs.50 was initially deducted but Paypal revesed it at a later date (seeing your discussion, I have just checked my Paypal account, else I would not have bothered). The problem is - we just cannot do anything either with the policies of RBI or that of Paypal, we need to bear with it. I do not mind if they (read Paypal) deduct Rs.50/- from my withdrawal amount, I will presume that my earning was one or one and half dollar less than the actual earning.. Let us wait if Paypal changes its policies for us, as has been pointed out by Zralte. Have a great day!

not good.... there are problems that arise every now and then. Wnat would happen if we didn't take the money within 7 days? What would paypal do to that money.

I had some small money in my paypal mimpi and I withdrew it.Of course 50rupees is a lot of withdrawal charges becasue all I wothdrew was about 10 dollars, my mylot payment. THis cannot be helped.To your question -- we Indians have a pathetic record of being law abiding citizens and always think of innovative ways of evading tax.[I read an article that India has the maximum amount of black money is Swiss banks.] Probably RBI wants to tighten the system and are imposing these restrictions on paypal.People earning small money are also caught in the process.

We do not have this problem in the US...yet. I hope that the situation improves rather than worsening. Good luck, Mimpi!

This is bad news for Indians. Having to withdraw every seven days for those who are regularly getting payments online is going to be very expensive. But we are still not able to withdraw below $ 10. Hope this money remains intact.

So far I've not heard such here in the US. I hope I don't. Good luck and I'm sorry. quita

Hi mimpi, yes it is sad that small time earners have to pay this fee. My opinion on this matter is that it is all because of Tax Evaders. Those who are doing big businesses using Paypal and not declaring it to the government. That is what RBI is trying to target. To answer your question, some of the rules have been implemented and some, not yet. As per the new regulations, we have to withdraw within 7 days of receiving payment. That is not implemented. I have kept some money for more than 15 days and nothing happened to them. Some members contacted Paypal regarding less than $10 withdrawal, Paypal has replied saying they are going to implement automatic withdrawal and also waived the withdrawal fee of Rs. 50 while withdrawing below Rs. 7000. That is not implemented either. We still cannot withdraw less than $10, and Rs. 50 is still charged as withdrawal fee when withdrawing less than Rs. 7000. However, what is implemented is that we can no longer use our Paypal balance to purchase. We need to use credit card to fund any purchases. I have withdrawn twice since March 1st. Both times more than $10. Both times I have been charged the Rs. 50 withdrawal fee.