PayPal makes Important Changes regarding India

Sign up for PayPal and start accepting credit card payments instantly.

First a short snippet about Paypal,

PayPal is an e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to traditional paper methods such as checks and money orders. A user can put money to his PayPal Account with an electronic debit from a bank account or by a credit card. If a person receives money in his PayPal account, then he/she can either request a check from PayPal, establish their own PayPal deposit account or request a transfer to their bank account.

In short PayPal, is an easy way to receive money, buy products or transfer money online. PayPal which is owned by e-commerce gaint e-Bay is very popular among online entrepreneurs, bloggers, students and people living abroad. A person can open a PayPal account for Free and there's no minimum balance account either.

PayPal legally operates for Indians living in India and anywhere in the world too(in most countries).

Owing to the new rules from the Reserve Bank of India, India’s central Bank, who intends to regulate PayPal payments like other wire transfers of cash, PayPal is making more changes to its online payment service in India. Below are the new changes:

1) PayPal will begin restricting the size of payments to merchants in India. According to PayPal blog, the new rules imposed by the bank will be effective March 1.

2) Under the new rules, India-based merchants who use PayPal won't be able receive payments from outside India for more than $500 per transaction. For purchases or payments above this transaction value, you will have to use an alternative payment method. According to PayPal, most of transactions by merchants who use PayPal in India involve less than $500.

3) The new rules also stipulate that, as of March 1, PayPal users in India won't be able to use their existing balance and future payments to buy any items. Instead, they must transfer funds to a bank account in India first.

4) PayPal users within India who sell goods to buyers outside India will have to transfer their PayPal funds to a bank account in India within a week of being notified that they had made a new sell.

5) However, users in India will still be able to use PayPal to buy items from foreign merchants over the Internet.

PayPal underlines that the rules by RBI will affect all online payment services in India. So PayPal is not alone to be making changes to its rules with respect to India.

The new changes are a mixed bag, but they seem to be affecting more to Merchant account users from India than simple PayPal users.

PayPal is a must for all people who engage in online activities, like online entrepreneurs, merchants, bloggers, professionals; and to those who or some of their family members lives outside their countries; as the service is an easy way to both receive, spend and transfer money online. --------

No comments