Last few weeks have been quiet disturbing for Indian Bloggers specially for those who make their transactions online using Paypal all the time. Paypal India had been experiencing great challenges and actually stopped allowing payments to be sent to or from India. Any payments transferred was reversed to their senders, and users had no access to them.
Recently Farhad Irani from the Paypal blog came up with a good news and reported that they will be resuming local bank withdrawals in India.
I’m pleased to tell you that the RBI has now allowed us to resume 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, we will be able to resume the bank withdrawal service.
He also mentioned that personal payments will still be suspended but Paypal will be accessible to those who are willing to buy or sell goods online since this will undergo some restrictions from RBI. For example if you are an exporter, you will continue to be able to use the PayPal service for payments of goods and services. Furthermore Paypal will also require specific approvals for personal inward remittances to India.