Paypal and India.

So, at last, the cat is let out of the bag. It is the honorable Reserve Bank of India that rocked the boat for reasons known only to them. Instead of seriously looking into their own policy, they simply ordered the Paypal to suspend all the (well almost) transactions of Indian residents.

Hundreds of IT companies in India and thousands of freelance computer professionals rely on PayPal, to receive payments from overseas clients.

This is what Alpana Killawalla, a RBI spokesperson is reported to have said:

"Providers of cross-border money transfer service need prior authorization from the Reserve Bank under the Payment and Settlement Systems Act,” said. “PayPal does not have our authorisation.”

And how else Paypal has a big office in Madras?

All those freelancers (including I ) and small IT companies bring in quietly, foreign currency into India without spending any foreign currency. We are indebted to Paypal by making things easier for us. Paypal used to process our money withdrawal requests into our bank in 5 days.

Now, everything is stopped. While Paypal is extremely kind enough to email every affected Indian merchant and apologise for the recent hiccups, Indian Government has not come out with any clear statements as to why this drastic step has been taken unmindful of the hardships faced by its citizen.

Read the source. Times of India

Also read Thepaypalblog.com

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