PayPal RBI Finally come to a Truce

February 27th, 2010

Below is the mail i got today from PayPal… They have finally resolved the payment issue with RBI but what worries me is the Export Code, does this mean that only Exporters can transact online via PayPal? There are thousands of Individuals who do not have an Export code… what happens to them? Will they manipulate the system by entering any random export code in the PayPal form?
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We have been diligently working with the RBI and our business partners to resume Indian bank withdrawals for the thousands of Indian businesses who depend on PayPal to sell their goods or services in the global marketplace.

Today, we are happy to announce that the RBI has allowed us to continue local 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, customers will be able to use our bank withdrawal service.

As part of the changes, you will be required to fill out a new field entitled ‘Export Code’ when you request a withdrawal. This information is required under the current laws of India in order to identify the nature of cross-border merchant transactions.

On Monday, March 1st, we will be back in touch with specific instructions on how you can move your money into your bank account.

Moving forward, the RBI has told us that PayPal needs specific approvals to allow personal remittances to India, which we currently do not have. Until we get these approvals, personal payments into India will remain suspended. However, if you are an exporter, you will continue to be able to use the PayPal service for payments of goods and services. In fact, with the changes we are making to our system, PayPal is now set to be a more powerful engine for exporters in India. With purpose codes for export transactions and FIRCs (Foreign Inward Remittance Certificates), you should now be able to get the export related benefits you seek.

Comments

  1. Harsh Agrawal February 27th, 2010

    This news come as a morning surprise for me…I thought it started from today but after reading Blog post on paypal blog, realize they are expecting it to start from 3rd .. Lets wait and watch

  2. Gourav Jain March 1st, 2010

    I have tried debit cards of Bank of India and Axis Bank to integrate with Paypal but they are not working.
    So which bank’s debit card should I use to accept and transfer payments in India through Paypal ?

  3. Prashant March 1st, 2010

    Gaurav, i don’t think International Debit Cards work with PayPal, as they only accept Credit Cards from India.

  4. Gourav Jain March 1st, 2010

    Can we transfer payments to credit cards ???

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