PayPal money

I also find this ridiculous. If we are allowed ten thousand dollars for our trips abroad why not also here. May be there could be some time bound limits but not the way that is being done here. I also am frustrated on account of this rule.

Well, as per Philippine guidelines, there is no such rule that the Paypal money be sent to a local bank account right away. I am accumulating my earned money as of the moment in Paypal and have a long overdue task of applying for an EON card. So it stays there up until now. Why does the Reserve Bank of India impose such a rule like that anyway?

I am from India and I too feel the same way. Even if it is just $10, it will be auto drawn and we loose in that small money, pay pal charges and exchange rate fee. If it is allowed to get accumulated, it will be very helpful. But our hands are tied and we cannot do anything for that.

After all, it is India and it is our rule! Till last year there was not so rigrous instructions and now we need to transfer this balnce to our local bank account. There are few explantions to it. Earalier, people used to deposit the money (in larger volumes) and paypal also used to provide nominal intersts if the balance is more than 45 days. Means paypal is paying interst (the job of a bank or money lender), which is not as per the guidelines. Again, as this cash transaction is happening around the world and a lots of money used to get transacted without 'tax' benefits to the govt. If our money is held up with paypal for more than 45 days and if it is a major amount, interst is to be provided and tax issues also become a problem. Therefore, it is advised that paypal would be only a mediator for the money transaction and once it reaches to paypal from anywhere to any account, it is to be linked to the local account holder and get transferred without my delay. Also, to check the black money transaction, money transfer from different countries without customs notification, international use of money from different countries without notifying the same (suppose I am an Indian and having paypal balnce of 1 laksh. I may be travelling to any of the foreign countires and if I withdraw the same money from the foreigh country, I will be able to avoid the involvement of money when I was in abroad. Whereas, if we carry more money at hand while travelling, we need to disclose here. Also, there are more points to be noted. We may be think about $10-25 or 100. But when it comes to the bigshots the figures shoots upto millions and such transactions create a lot of black money issues and many are taking due advantage of such situations. Any way, they should keep a slab amount and an amount below $100 or so can be allowed and if such a minimal balance maintainance is provided, we could have benefit such online transactions smoothily. I think the rule may be same with AlertPay and such online transaction companeis also. Also, there are a lots of factors between the govt. and the company with a mutual understanding. As I am working for a company where paypal is a client, and know what exactly is happening behind the screen. "Dog won't eat the grass and it won't allow to eat the cow also". Hopy you must undestad what I mean!! After all it is our great India and our greatest administration...

RBI fixed this rule on paypal. The amount will be auto withdrawn to your bank from paypal. You cannot make online trascation with the money in paypal.Rules never change unless and otherwise the company or RBI change it.

i am glad to heart it

Me too Professor.I would like to retain it as forex in Paypal but we have no choice.

Upon reading your discussion, I checked my PayPal account - to make sure something was in there - hee hee. I live in the US - and I am able to accumulate the money in PayPal. Literally I just let the money sit there and I can forget about it (but I do log in every now and then just to make sure it's all still there!!!). Once I transferred the money to my bank account because I wanted to make an online purchase from a store that did not accept PayPal - but that was the only time. It obviously was in US currency - but it seems I never have to think about that though I know other countries do. Mostly I don't spend it, but if I do, it's a big purchase for me. I was actually surprised at my account balance when I just logged in (it was lower than expected) but I had forgotten I bought this big sandbox for the kids a couple months ago! Now I am saving up for the sand - ha ha!!!!

Wow good for you, i dont even use paypal because i can't open my account...Good luck

hello sir, yes we are facing this problem , due to RBI . I want to accumulate my money in paypal , but this is not possible, i even inquired paypal management about this ,through mail, they replied the same. so as of now we dont have any option .

dear yes! i live in the states so when my paypal money reaches a certain amount then i am going to make a bank account with the money. i am gonna make a seprate bank account with the money just in case it doesnt work out as planned. the money is in dollars, my currenacy. but ehen i do get the money i will probaly spend it on small things.

Is it mandatory for you to have a bank account connected? I'm in Canada and Paypal works fine for me without connecting a bank account or credit card.

oh I did not know this. That is why I see the money got withdrawn automatically from paypal to my bank. ooohh and I thought i by mistake did it.. so silly of me..lol thanks for the information. have a wonderful day