PayPal amendments

Today PayPal has made some amendments in its policy for indian users. They have sent out a 30 day notice to Indian users about the new guidelines.

These are the three amendments.
- PayPal won't let Indian users receive payments for more than $500 per transaction
- Indian Users won't be able to keep money in their PayPal account balance.
- Customers will have to link their Credit Card to their PayPal account for money to Indian PayPal account users.

PayPal has been under severe and strenuous pressure from the RBI and this amendment is now for PayPal to comply up to RBI guidelines.

The following email was sent to PayPal users.

Dear user,

As part of our commitment to provide a high level of customer service, we would like to give you a 30-day advance notice on changes to our user agreement for India.

With effect from 1 March 2011, you are required to comply with the requirements set out in the notification of the Reserve Bank of India governing the processing and settlement of export-related receipts facilitated by online payment gateways ("RBI Guidelines").

In order to comply with the RBI Guidelines, our user agreement in India will be amended for the following services as follows:

- 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.

We seek your understanding as we continue to employ our best efforts to comply with the RBI Guidelines in a timely manner.

We regret any inconvenience caused to you and hope the advance notice will enable you to plan your future use of our services accordingly. For further information, click here.

If you have any questions, please contact PayPal customer support by logging into your PayPal account and clicking on 'contact us' at the bottom of the page. We sincerely thank you for your patience and continued support.

Sincerely,

The PayPal Team

For more info regarding this matter visit their site. Here is the link.

Well at least one thing is clear that RBI has made it much more difficult to Indian PayPal users.