Money & Banking

Paypal follows new RBI norms on payments to trade

| Updated on: Jan 29, 2011

Online payment service PayPal has announced changes in its payment to Indian transactions, following the guidelines issued by the Reserve Bank of India on requirements for governing the processing and settlement of export-related receipts facilitated by online payment gateways.

Beginning March 1, 2011, “any balance in and all future payments into your PayPal account may not be used to buy goods or services and must be transferred to your bank account in India within seven days from the receipt of confirmation from the buyer in respect of the goods or services,” said PayPal’s blog spokesman Mr Dickson Seow in a posting.

“Export-related payments for goods and services into your PayPal account may not exceed $500 per transaction,” he said in a blog.

Mr Seow hoped that this 30-day advance notice period will enable its Indian customers to plan their future use of its services accordingly.

For global users, he said he regrets the inconvenience to be caused from March 1, 2011, when they try to purchase from or send payment to an Indian merchant over $500 per transaction.

“For purchases or payments above this transaction value, you will have to use an alternative payment method,” he wrote.

In February last year, PayPal had announced to have suspended certain type of payment transaction in India.

“I am writing to let you know that personal payments to and from India and transfers to local banks in India have been suspended while we work with our business partners and other stakeholders to address questions they have about the service,” wrote PayPal spokesman Mr Anuj Nayar in a blog posting in February 2010.

PayPal facilitates online payment and protects customers’ sensitive financial details with customisable security filters.

Published on January 29, 2011

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