Should Indians try to avoid paypal?

India
November 22, 2011 11:21am CST
Yesterday my so long earning of $25 at mylot has been credited to my paypal account. I have heard that paypal has to abide by some rules and regulations imposed by Reserve Bank of India which restricts use of paypal account money in further investment online. Then would the money accumulated there in my paypal account be automatically transferred to my local saving bank account in India which has been registered with paypal or do I need to ask paypal to do so? Under such circumstances, what I need to do if I want to invest online? I think there is no such restriction imposed by Reserve Bank of India on any other money processor systems like alertpay or liberty reserve. So do you think it would be wise for an Indian to avoid paypal where it is possible and opt for alertpay or liberty reserve for easy handling of fund earned online?
1 person likes this
15 responses
• India
22 Nov 11
I am yet to reach the limit set by me here so I haven't had any payout. But I have read details at Paypal and find nothing that mentioned or indicated that money transfer to our banks is restricted by RBI. I expect to get an automatic transfer to my bank account once there is payout. With a fair degree of confidence, I can suggest to you to continue with Paypal.
• India
29 Nov 11
Who says that money transfer to our banks is restricted by RBI? I am not sure whether there is automatic transfer to our bank account in India but what my own practical experience with paypal shows that money accumulated in my paypal account in the middle of November,2011 from mylot is still now there.
• India
29 Nov 11
Do you imply I said so? Pl read what I said: ..find nothing that mentioned or indicated that money transfer to our banks is restricted by RBI. In effect it meant there is no restriction by RBI For abundant clarity, I quote the provisions from the Paypal agreement page: Countries with ability to send & receive payments include India Countries with ability to send & receive payments and have Automatic Transfer does not include India So, if you have not manually withdrawn, your money will be lying in your Paypal account.
• India
29 Nov 11
No, I never intended to say that you have said so. But I am not sure whether there is automatic transfer to our bank account in India as I have commented with my practical experience of paypal. Can you say something in this regard?
@sanjay91422 (2728)
• India
23 Nov 11
It is a long time now, since this restriction is put for the Indians. Investments in the online programs is not allowed, and if the money remains there for more than 1 week it gets transferred automatically to the bank account. The good thing is this that the fees which was big earlier is relaxed now.
• Mumbai, India
23 Nov 11
Hi sanjay for the problem of investing online we can use alertpay i personal use alertpay only for that reason alone
• India
29 Nov 11
Hi sanjay91422, my money has been remaining there at paypal for more than 1 week, but it is yet to be transferred automatically to my bank account in India. I am not sure whether I have to request paypal for the necessary transfer. Can you say anything in this respect?
• India
29 Nov 11
Hi sajeevking, where do you invest your alertpay fund?
@sajeevking (5080)
• Mumbai, India
22 Nov 11
Avoid paypal i guess then how would we get our earning from our favorite site mylot I like paypal as it is very very easy to get our money in our bank from them as they do it free of charge other payment process cost while cashing out the funds from them and alertpay i think they take 3 to 4 weeks to delivery check at our home which is a long time (never tried it too cash out from it though) i would suggest use paypal for cashing out and alertpay only if ever you like to invest online or in some online site which only pays through alertpay other than this always prefer paypal
• Mumbai, India
28 Nov 11
alertpay is just fine but i do not trusted it as paypal but its has huge number of member too don't worry about it
• India
29 Nov 11
I am going to follow your technique and so I have just joined alertpay, but the verification process is still now incomplete. Let me know if I like to invest money online through alertpay, would it take any fees for the service it would render thereby.
@lijoos (346)
• India
23 Nov 11
i am not aware of these things. i dont have paypal yet.
• Mumbai, India
23 Nov 11
Hi lijoos better create a paypal account as e need it in order get paid from mylot paypal account is free safe and easy to create
@veejay19 (3592)
• India
23 Nov 11
I suggest that you have accounts in all 3 processors.In this way funds from paypal can go into your bank and alertpay and LR funds can be used for other purposes. I have done the same and i find it useful.
• India
29 Nov 11
I think you have done so for investment online. Would you kindly share your experience investment online and suggest some sites for the purpose?
@vandana7 (64877)
• India
23 Nov 11
Paypal is in no way responsible for that restriction. Reserve Bank of India, which is the central bank of our country is. RBI periodically monitors inflows and outflows of dollars. Inflows should be from reliable accounts - the know your customer thing, which is to prevent terrorists bringing in monies into country, and slyly investing in the country bypassing the usual norms. Other reason for RBI to prevent investment outside the country at this point of time is acute shortage of dollars at this point of time. As you are aware, our country is importer of oil, and we do not have any resources of that commodity except in strife stricken North east. I think it is time for us to be patriotic and forget about investments for a while.
@vandana7 (64877)
• India
23 Nov 11
And while on this..Paypal is the best online payment processor. It does not support scams. It withdraws support from scams. Moreover, it is possible to raise some disputes though it is not always something that will fetch you monies. In other payment processors - if you invest and receive monies, it is possible for the scamster to withdraw funds from your account. At least that is what I have heard. My vote will always be for Paypal, even though it does give problems occassionally. There may be a lot of procedures incorporated for securing our monies. When they need clarification, it takes time to comply with such things.
@kingparker (9698)
• United States
23 Nov 11
Maybe you should advise your fellow Indian compatriots about this paypal issue with your earnings online. I am not an Indian, but I heard a lot of complaint about the paypal issue with Indian onliners about this problem a lot. So, it is probably the issue with the reserve bank in India, not the problem with the paypal system after all. If you can, avoid the usage of paypal.
• India
29 Nov 11
No, it is not the problem with the paypal system, it is absolutely a problem with the Reserve Bank of India which for reasons unknown has imposed such unnecessary restrictions on paypal.
@pardhu8 (391)
• India
22 Nov 11
Hi Doctordidi, The only reason i opt for paypal is its very easy for Indians to get paid directly to our local savings bank.I use alertpay funds for investing in any other sites because it i read in many discussions here and in other sites too that alertpay takes almost 15 to 20 days to get our money which is very long and lengthy process.So,i try to avoid alertpay.
• India
29 Nov 11
This means that for direct transfer o our local savings bank account, paypal is ideal and for any investment online, alertpay is to used. Am I right? In this context, I would like to know what are the sites you are using alertpay funds for investment, of course, if you have no objection and feel free to disclose.
@ram_cv (16516)
• India
22 Nov 11
I think they simply credit to your bank account the amount. The last two payouts from mylot for me have got credited to my bank account. When they do these auto-transfer they do not charge any fees for that, so in that sense it is really not that bad. Cheers! Ram
• India
29 Nov 11
It may be but the problem is I cannot invest any money from there, can I?
@Xansus (950)
• Bulgaria
29 Nov 11
I think they clean every month in somecountries paypal or so i was reading somewhere . Every new month you begin a clean but i did not really read what happened to the money because it was not my country included in these . But i think you should read more about it i dont know what is it actually . But i did get that alert on paypal . So you should search for some information about it .
• Indonesia
24 Nov 11
congrats to you.. becouse you have money..
@niitesh (1656)
• India
24 Nov 11
Though paypal is getting worse everyday but we don't have any better alternative as most of the genuine site uses paypal or cheque for making the payments. The cheque system though isn't feasible as it takes ages to arrive and even longer to get it encashed. So all those working online can't avoid paypal even if want to
@anil02 (2968)
• India
23 Nov 11
Hello, Congratulation for reaching at payout. It is right that RBI imposed some conditions. We can not invest amount which is accumulated in paypal account, First we transfer it in our bank account. If we want to invest amount than we have to add amount to paypal account from our bank account.At present auto transfer condition is not inforce. We can transfer when we want. I transferred amount in this way in last month. Paypal is not charging any amount for transfer. It is working properly.
• India
23 Nov 11
Hi, you can use paypal to receive your earnings and spend it. but if you want to invest then use alertpay, that will be more easier. Or if you are not able to receive your payments to alertpay, u can exchange dollars with your friends or others to invest money.
@msdivkar (1903)
• India
23 Nov 11
Hi doctor didi, I feel paypal is the best online payment processor, not only for Indians but for the people world over engaged in money transaction on internet. There is no other payment processor as efficient and as easy as paypal. Paypal has to impose certain rules and regulations imposed by Reserve Bank of India which does not permit Indians to hold foreign currency holdings outside India. So also it does not permit the reinvestment of your foreign currency earnings through payment processors. Paypal is following these rules to perfection as they care for the rules and regulations of forign Govts. they are doing business with. This is not the case with other payment processors. You can invest your money abroad through your credit card or net banking account through paypal. G.O.I. has no objection to that. I feel paypal is withdrawing the money deposited in your account to your bank account is India automatically without charging their normal fees if the amount is less. This is unconfirmed correct me if I am wrong.