PayPal: Resuming local bank withdrawals to India

Ebay and Paypal European HQ

Ebay & Paypal European HQ The sign on the building is a dead give-away, but only tells part of the story. Located in a nondescript industrial park near Blanchardstown, this was the European HQ of eBay. In 2006 the web-based auction house moved 2 Kms
Ebay & Paypal European HQ The sign on the building is a dead give-away, but only tells part of the story. Located in a nondescript industrial park near Blanchardstown, this was the European HQ of eBay. In 2006 the web-based auction house moved 2 Kms | Source

PayPal issues

PayPal payment suspended


PayPal is a major banking service working worldwide. They are major instrument for overseas payments to exporters, service providers and e-sellers. Sellers and buyers in E bay and Amazon frequently use the services of PayPal.

Large Numbers of Non Resident Indians (NRI) also use PayPal to remit money to their friends and family in India. Personal payments to and from India and transfers to local banks in India had been suspended from February 9, 2010 due to a notification from RBI.

During this time, customers could make commercial payments to India but merchants could not withdraw funds in Rupees from local Indian banks. PayPal authorities regretted the inconvenience customers faced in India and around the world.

PayPal Security Key

Photo of a PayPal Security Key being used to login
Photo of a PayPal Security Key being used to login | Source

Verify PayPal account in India

PayPal resumes local bank withdrawls in India


PayPal had been working with their business partners and the Reserve Bank of India (RBI) to resume local bank withdrawals in India for the thousands of Indian businesses who depend on PayPal for their overseas payments. PayPal has become an essential and convenient tool for them to sell their goods or services in the global market place.

PayPal has now announced that the RBI has allowed them to continue local bank withdrawal service in India for payments of exports of goods and services. They are currently making changes to comply with Indian regulations for settlements for exports of goods and services and they anticipate that customers will be able to use their bank withdrawal services from March 3, 2010.

Customers will have to fill out a new field entitled “Export Code” when they request for withdrawals in local banks. This particular information is required under the current Indian Laws to identify the nature of overseas business transactions.

PayPal will be back in touch with specific instructions on how customers in India can transfer their money into their bank accounts on Monday, March 1, 2010.

The Reserve Bank of India has informed PayPal that they need specific approvals to allow personal remittances to India. They do not get the approval so far. Personal payments into India will remain suspended til they get these statutory approvals. However, if a client is an exporter he or she can continue to use the PayPal services for payments of goods or services sold overseas.

PayPal is set to be a more powerful entity for exporters in India with the changes they are making to their system. Customers would be able to get export related benefits with purpose codes for export transactions and Foreign Inward Remittance Certificates (FIRC)

How to set up PayPal account

PayPal requests to Indian customers


Why PayPal did suspended local bank transfers and personal payments in India?

PayPal suspended these services (local bank transfers and personal payments) to respond to inquiries from the regulators in India. They had to answer specifically questions on personal payments that constitute remittances into India.

They had worked with their bank processing partners in India and the regulators to get the problem resolved. PayPal realized that this was causing considerable inconvenience to their customers. They wanted to reassure their customers that this was a top priority for PayPal.

PayPal San Jose Headquarters

 Headquarters of PayPal. 2211 N First St, San Jose, California, USA.
Headquarters of PayPal. 2211 N First St, San Jose, California, USA. | Source

When will personal payments be turned back on?


The regulators in India recently informed PayPal about revised licensing rules.PayPal is now actively engaged in process of complying with these revised rules. Personal payments to and from India will be remained suspended for at least few months until PayPal fully resolve the questions from the Indian regulators.

Farhad Irani, Head of Indian operations, PayPal informed that Customers will be reimbursed for any withdrawal fee charges.

He told that It has always been possible for sellers to request a check and this option is still available from the Withdraw Money tab of PayPal account. It usually takes five to seven working days to receive a check when a customer request a check and PayPal normally charges a fee of $ 5 for that. They are trying their best to help sellers during this difficult time. PayPal will refund the check withdrawal fee back to PayPal account of the Indian customers within a week. Though this is not ideal situation but he will appreciate customers' patience.

He added that India is a very special market and continued success of Indians in overseas markets is very precious for them.

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Comments 10 comments

JYOTI KOTHARI profile image

JYOTI KOTHARI 6 years ago from Jaipur Author

Hi Pretty,

Thanks for visiting the hub and commenting on it. I appreciate your effort.

Thanks,

Jyoti Kothari


prettydarkhorse profile image

prettydarkhorse 6 years ago from US

I am glad it is back again Jyothi, I appreciate this hub and your nice way of sharing the information, Maita


JYOTI KOTHARI profile image

JYOTI KOTHARI 6 years ago from Jaipur Author

Hi Sufi,

Thanks for your comment. You are as good as always!

Jyoti Kothari


Sufidreamer profile image

Sufidreamer 6 years ago from Sparti, Greece

I hope that they get this fixed, Jyoti - the freelance site that I work on has thousands of Indian providers, and it made life very difficult for them. I think that they have sorted the problem (a freelance worker is an exporter, after all), but only after a lot of stress.

Good Hub, as always :)


JYOTI KOTHARI profile image

JYOTI KOTHARI 6 years ago from Jaipur Author

Hi HP,

Thanks a lot.

Jyoti Kothari


H P Roychoudhury profile image

H P Roychoudhury 6 years ago from Guwahati, India

Informative hub. Thanks.


JYOTI KOTHARI profile image

JYOTI KOTHARI 6 years ago from Jaipur Author

Hi Aaron,

Thanks for visiting my hubs. I have done nothing for you. You have got what you deserved. I am very much impressed by your work. Keep it up!

I wish you all success in hubpages and elsewhere.

Jyoti Kothari


AARON99 6 years ago

Thank you sir (Jyoti Kothari). You are such a great man i have ever seen. I have visited your all hubs (almost) and very much facinated by your work. You influenced me so much, i must say. More over, your encouragement to a novice like me, is a great honour to me. Which is cannot be forgotten in my entire life. Thank you once again for visiting my hubs along with your valuable words and giving me such a great honour in the form of selection in Hubbers India. Hope you will always give me your blessings by these way.


JYOTI KOTHARI profile image

JYOTI KOTHARI 6 years ago from Jaipur Author

Hi Aaron,

Thanks for visiting the hub and commenting on it.

Jyoti Kothari


AARON99 6 years ago

A very informative hub, must say. Keep it up.

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