Categorized | Industry News

New Restrictions for Indian PayPal Users

Posted on 29 January 2011 by Andrei

Two Reserve Bank of India guidelines will unfortunately make the lives of Indian PayPal users (these changes have been brought to my attention by an Indian domainer) a lot more difficult as of March 2011: on the one hand, they will no longer be allowed to keep a PayPal balance and on the other hand, they will no longer be allowed to accept over $500/transaction.

For more details, read the post published on TechCrunch.com a short while ago. While I’m not from India and most of you aren’t from .in either, we need to understand that such changes can and will affect us as well because I seriously doubt you can name ONE domainer who hasn’t sold something to an Indian investor or bought something from an Indian investor at least once.

11 Comments For This Post

  1. MQJ Says:

    I opened my email today and found this newest piece of ‘Shit’ inside my mailbox. This is probably the worst news for me this year. This will totally affect my online business because most of my online business transactions are done through PayPay only. I can’t understand what’s the problem RBI has?

  2. Mike Says:

    I have bought a few domains from domainers from India and I couldn’t understand what’s happening there.

  3. Danny Says:

    The RBI feel that the majority of Indians are not to be trusted with THEIR money! A recent quote “Too many Slum Dogs trying to become millionaires” ??

    The problem with India and most developing countries, they get greedy and then they spoil it for themselves..

  4. Sri Says:

    I believe the problem lies not with RBI but PayPal. Remember the last time they created problems for users for a few days (in Feb.2010) and then things were back to normal.

    The problem is that RBI might want some small compliance and to enforce that, PayPal implements a blanket policy to keep things less complicated for themselves. They don’t really care for Indian users.

    Anyway, you can always wire to and from Indian banks at not much difference in cost, time and security.

  5. Danny Says:

    Doesn’t change the fact that it’s become harder for companies in the west to do business with Indian markets, a shame because our relations with developing India needs to be closer not further apart.

  6. Joey Starkey Says:

    What is it like 1.2 Billion Indian’s. Why is it that American companies like to shoot themselves in the foot? I have a few .in domains that are starting to get a little attention from the region. Hmmm…

  7. Sri Says:

    Came across this interview with an ex-employee of RBI that spells where the problem lies:
    http://techie-buzz.com/tech-news/paypal-rbi-guidelines-flouting.html
    Like I said, PayPal is just trying to circumvent the standard regulations.

  8. pat testing Says:

    a blanket policy to keep things less complicated for themselves. They don’t really care for Indian users.

  9. Shail Says:

    IT shook my world , I have been workin online since two years with one of my US friend and we do a lot of transactions to pay programmers and buy stuff to roll out new websites , and this guideline will make my life miserable.. I want to fly out of india and stay in africa rather to stay here and feel like livin in hell …

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