Paypal F**ks Indian Companies – to Suspend Personal Payment for few months

In a worst ever decision, Paypal India has announced that the issue of suspending personal payments will continue for the next ‘few’ months.

Here is the update on their blog

Why did you suspend local bank transfers and personal payments to and from India?

We temporarily suspended these services to respond to enquiries from the Indian regulators, specifically questions on whether personal payments constitute remittances into India.

We’re working with the regulators and our bank processing partners in India to get this resolved as quickly as we can. We realize that this is causing considerable inconvenience to our customers and I want to reassure you that this is a top priority for the leadership at PayPal

2. When will personal payments be turned back on?

The regulators recently let PayPal know about revised licensing rules that we are now actively engaged in securing. Personal payments to and from India will be suspended for at least a few months until we fully resolve the questions from the Indian regulators.

3. When will local bank withdrawals be available?

Customers should be able to withdraw their funds to a local bank within the next few days. In the meantime, we’re going to restore the money into the PayPal accounts of any customers in India who have initiated a recent withdrawal, so they know that the money is safe in their accounts. Customers will also be reimbursed for any withdrawal fee charges.

Am at loss of words – its a shame that Indian regulators and Paypal will take few months to resolve the issue [well, RBI takes Paypal as another Hawala route for money laundering.]

The seriousness of the issue can be gauged from the fact that there are 650+ comments on our earlier article (Paypal India Outage – No Payments to or from India) – with companies depending on Paypal for all their revenues.

What about Indian IT Act? Clueless about such services.

Answer this : Paypal Alternatives in India?

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