A few weeks ago Paypal had stopped transactions to and from India.. This caused a lot of problems to the Indian customers who received payments through Paypal.. This resulted in flood of online complaints that ranged from accusations of racism to sheer amateurism..
Paypal didn't provide any justification as to why they had stopped the transactions.. Recently they said that they were forced into halting personal payments by the Reserve Bank of India (RBI) because they did not comply with all relevant regulatory requirements..
Last night, PayPal posted a status update on its corporate blog, saying that they anticipate to resume part of its service, namely bank withdrawal abilities, as of Wednesday, March 3rd.. Here's what they posted :
We have been diligently working with the RBI and our business partners to resume Indian bank withdrawals for the thousands of Indian businesses who use PayPal to sell their goods or services in the global marketplace.
I’m pleased to tell you that the RBI has now allowed us to resume bank withdrawals for settlements for exports of goods and services. We are currently making changes to comply with Indian regulations for settlements for exports of goods and services, and we anticipate that as of Wednesday, March 3rd, we will be able to resume the bank withdrawal service.
Indian customers will be required to fill out a new field dubbed ‘Export Code’ when they request a withdrawal.. This was required under current Indian laws in order to identify the nature of cross-border merchant transactions.. PayPal will provide specific instructions on how users can move money into bank accounts from Monday, March 1st..
But Reserve Bank Of India has informed PayPal that it requires specific approvals to allow personal inward remittances to India.. PayPal is still forced by law to effectively suspend personal payments going into the accounts of its Indian customers for the foreseeable future, unless they are exporters..