Time companies/individuals start looking for a Paypal alternative. Paypal has been stuck in regulatory hurdle and the company has failed to take a clear stand with regards to payment processing to India.
And today, Paypal has announced that India users will not be able to withdraw Paypal funds via electronic means.
From July 29, 2010 onwards, India users will only be able to request for a cheque withdrawal of funds. To help our users with this change, PayPal will refund the $5 USD cheque withdrawal fee for cheque requests made on July 29, 2010 onwards.
Email from Paypal India [thanks Jacob and Deepak]
In accordance with regulatory instructions, we would like to notify you about a change in our withdrawal functionality in India starting on August 1, 2010. At present you can request for either an electronic or cheque withdrawal of funds from your PayPal account if you are an India user.
From July 29, 2010 onwards, you will only be able to request for a cheque withdrawal of funds from your PayPal account.
While we are working hard to restore the electronic withdrawal service, in the meantime, we are bringing this matter to your attention so that you can plan your future withdrawal activities accordingly.
To request for a cheque withdrawal:
1. Log into your PayPal account, click on ‘Withdraw’.
2. Click on the ‘Request a cheque from PayPal’ link.
3. Enter the withdrawal amount and select your mailing address, then click ‘Continue’.
4. Click ‘Submit’ to confirm your request.
In order to help you with this change and until further notice, we will refund the $5 USD cheque withdrawal fee to you for cheque withdrawals made on July 29, 2010 onwards.
For any questions, please log into your PayPal account and click ‘Contact Us’ at the bottom of the page.
We apologise for any inconvenience caused from this change in our withdrawal functionality. We will provide ongoing updates to you here. We thank you
Carry on the discussion in the forum.
Update : Paypal has resumed electronic withdrawal [for now]
Roundup of Earlier Paypal Issues
- Understanding Exports of Goods & Services Regulations [Paypal Issue]
- Paypal to Suspend Personal Payment for few months – to resolve issue with regulators
- Paypal users will need Purpose Code to withdraw to Indian Banks
- Paypal F**ks Indian Companies – to Suspend Personal Payment for few months
- Paypal Resumes Local Withdrawals to Indian Banks, Here is how to get Export Code