Earlier we informed you about Reserve Bank of India banning PayPal from carrying out its operations in India. Heres the update of that. RBI has now allowed PayPal to resume bank withdrawals for settlements for export of goods and services. PayPal is expecting to resume this service by 3rd of March. Please note that this applies only to merchant/business accounts, personal payments will continue to remain suspended for some more time.
Looks like PayPal has been working real hard and quick with RBI in order to resume its normal operation in India. Although things are getting back to normal, you, the merchant will now have to supply in additional details like 'Export Code' etc to PayPal in order to continue using PayPal's services. PayPal will be sending out instructions to the merchants containing all the details about these things on 1st of March.
Sadly, the personal payments will continue to suffer for some more time. PayPal will need to get some more specific approvals from RBI to resume this service. Lets hope that PayPal gets over with this quickly.
This is what PayPal had emailed to us :
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.
PayPal had also published a post in their blog with this update. You can check it out here.
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