PayPal is almost closed in India as it deploys the restrictions sent by RBI from 1st March 2011. When i opened the PayPal account today, i saw “Notification for PayPal users in India”.
There are two major restrictions for Indian users from March 01, they are –
- 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.
So users, mostly webmasters in India are finding the new alternative ways to send money online. You can send money from PayPal also, but not from the balance, you should link the credit card to PayPal account. But in India many webmasters don’t have credit card and their business have been restricted till they find a new way to send and receive the money.
Why did PayPal or RBI has deployed these restrictions?
The answer is Income Tax. Yes, there are many people in India who are earning more than $1000 per month and they are using that money to buy products or services online only and the RBI can’t track those money. If the webmaster transfers the PayPal money to his bank account then uses the same money via credit card then they can keep an eye on his transactions, so they have deployed these restrictions.