Paypal is having major issues in India, after having lots of problems few months back with RBI regarding bank withdrawal ,it has completely scrapped the option of direct paypal deposit on banks.From July 29, 2010 onwards, you will only be able to request for a cheque withdrawal of funds from your PayPal account. Its a major setback for paypal users in India as still postal service in India sucks. Cheques will be delivered by a normal post or courier ,it is still to been seen. If they send the cheque then a guy like me will never receive a single cheque . The reason behind this decision is still unknown . But, I think its due to some sort of clash with RBI .
I got the following mail from Paypal and was quite surprised by the move :
Dear Bishwajeet Mahato,
In accordance with regulatory instructions, we would like to notify you about a change in our withdrawal functionality in India starting on August 1, 2010. At present you can request for either an electronic or cheque withdrawal of funds from your PayPal account if you are an India user.
From July 29, 2010 onwards, you will only be able to request for a cheque withdrawal of funds from your PayPal account.
While we are working hard to restore the electronic withdrawal service, in the meantime, we are bringing this matter to your attention so that you can plan your future withdrawal activities accordingly.
To request for a cheque withdrawal:
- Log into your PayPal account, click on ‘Withdraw’.
- Click on the ‘Request a cheque from PayPal’ link.
- Enter the withdrawal amount and select your mailing address, then click ‘Continue’.
- Click ‘Submit’ to confirm your request.
- In order to help you with this change and until further notice, we will refund the $5 USD cheque withdrawal fee to you for cheque withdrawals made on July 29, 2010 onwards.
For any questions, please log into your PayPal account and click ‘Contact Us’ at the bottom of the page.
We apologize for any inconvenience caused from this change in our withdrawal functionality. We will provide ongoing updates to you here. We thank you for your attention and patience as we work tirelessly to resolve this situation as quickly as possible.
Thank you,
The PayPal Asia Team
Complete information regarding the withdrawal procedure can be found here.
If you have any computer related problem, you can ask it at our Question & Answer portal and our experts will answer your queries.
Hi Bishawajeet, I hope you have been well in spite of the announcement. I’m not sure what’s behind all of the issues with RBI but it sounds like it might take awhile for this to be sorted out. You might need to look for another method besides paypal.
I recieve cheques too, the problem with the normal post here in India is that it takes too much time to reach to normal customers like us. And if your address happens to be in the remote area then you are screwed. Btw I love Google cheques which I recieve every month in due time
. and nice to see you starting a .com stuff .
The present govt is really assholes….First they asked to enter PAN number to proceed, we did that but personal payments is still blocked. Now, this unknown reason block. If only cheque is possible, then paypal can send it within 5 days?
Hey Bishwajeet Mahato, thanks for the post. I received a similar email today morning. This clash between paypal and RBI has become quite frequent. It has happened for the second time in a span of just 3-4 months. I think the cheque service is good too, the only problem being the number of days that are taken to get the cheque delivered. There site says 5-6 days but it takes more than 15 days for the cheque to reach you and another 3-4 days for the amount to be credited in your account. It is really a shame for both Paypal Asia and RBI for not being able to solve the issues despite all compromises made by the paypal account holders. We have submitted PAN card details, waited for days for paypal to re-start the direct withdrawl to bank service, now they come up with the same issue yet again. We must find an alternative, really! All the best for everyone
@parth thnx for coming here, 15 days for cheque really sucks
@ben I dunt think they will send it in 5 days as said by parth
Just 2 weeks back I withdrew huge amount of money to bank ,so I seem pretty lucky
Dont know who is the wrong man “Paypal” or RBI Unit
It suspense but this is truth, They are big pain for New start-up
100% issue from RBI lets see what happened in global world
Hey Guys!
Its time to look for alternatives
1. Alertpay..they already integrated India for online payments
2. Xoom.com
3. Western Union
4. MoneyGram
A new fact about Pay Pal :
I applied for a charity account with Pay pal because its free and supported by vbulletin software for payment subscription, I have all the documents like NGO Registration certificate, Memorandum of Society, Society PAN card, and the Bank details , bank details were verified by the Pay Pal by depositing amount of Rs. 2 and 40 paisa, after submitting all the document as per said in their website and in their emails, they denied me for the account, just because they have no tie-up with India regarding charity account, what the hell is this, why the pay pal people should not mention at the time sign up process. I have wasted around 1000/- rs in doing fax to pay pal and after 4-5 days they denied.
Don’t apply for a charity account with pay pal if you are living in India. Just wastage of time and money.
@Sonia havent heard of the charity account , I have a premier account
When you applied for the Business account with Paypal then you have to select the nature of business.
We are running NGO, and hence come under charity.
Apart form this i am in favor of what RBI is doing, PayPal is earning a big amount from Indian customers, and not paying Tax to indian govt., I think RBI is doing just to collect tax and customer data from PayPal, this is good for our country.
We should support RBI.