What is Mean By Changes to PayPal India User Agreement
PayPal has changed user agreement for India to make it to the tune of RBI Guidelines and restriction put in place by them which will come in to effect from March 1st, 2011
This will greatly affect the way you are doing your Online Business now;
RBI has put its nose into your Online Business;
Here are the guidelines;
- 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 7 days from the receipt of confirmation from the buyer in respect of the goods or services; and
- Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction.
It Means;
- You can not put money into your PayPal account as your balance, Within seven days of receiving it you need to transfer it to your bank account.
- That also means that you can not buy goods or services with your PayPal balance.
- If you have to receive money for goods or services, which exceed more than $500 per transaction, then you have to look for alternative payment sources to receive this money as with PayPal you can only receive money for your goods or services up to $500 per transaction.
This will definitely effect Online Business of bloggers, Web Designers, Web Developers who were earlier using PayPal as their payment collection source or using PayPal for buying stuff for their Online Business.
Moreover It also allows RBI and Government to dig into your business more cleverly as by these means they have rooted all your business transaction through your bank account, and they can easily trace down and drill down transactions to their root from where you are receiving it or paying to.
Time now to settle down in Seattle 
10 Responses to “What is Mean By Changes to PayPal India User Agreement”
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means we cannot buy ….domain name webhosting ,any online service using paypal…very very sad
hope some solution will come soon….
this is really a bad news…now we have to look for Alternative to PayPal..
unfortunately we don’t have many good alternatives to PayPal
Moneybookers could be one of the alternative, it does not have any restrictions. or for PG system one can check 2CO
why does the Indian gov always has to play spoilsport…….. its time to say goodbye to our pal..PayPal
what !!! we can’t buy hosting ?? some time we need paypal balance in emergency … RBI is full of idiots
Till now paypal is used by small and medium enterprise business users, who have shops and were selling online, for them it will be a major setback
Guys,
The limit will be effective from March 1,2011. You have enough time to renew your hosting and domains for 3-4 years. Till then, I am sure, we will have an alternative solution.
Here is a work-around for this problem, which will ensure that your business runs smoothly.http://www.abhishekbharadwaj.com/2011/01/continue-using-paypal-in-india-without-affecting-your-business/
Regards
Definitely Government is trying to benefit all the local players in the market, now people would start using credit cards for purchasing stuffs online and would definitely be beneficial for the banks.
its really a bad news fro all Indian people belonging to pay pall..i agree with you its very hard to find its alternative ..but after sometime some new will get this place for sure ..hoping for so