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  • Home >> Blogging >> Drastic changes in Paypal User Agreement for Indian account Holders

    Drastic changes in Paypal User Agreement for Indian account Holders

    There is a bad news to all Indian Paypal account holders. Due to RBI Guidelines (Reserve Bank of India). Paypal had to make changes in the user agreement in India. They have amended the following services. They have given 30 days notice from January 28th, 2011. It means the new user agreement will come into effect from March 1st, 2011.

    It is a big jolt to all the Bloggers community in India.
    Drastic changes in Paypal User Agreement for Indian account Holders

    According to Paypal:

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

    1. 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

    2. 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.

    The above link which i have shared also has the FAQ.

    Impact on Indian Bloggers Community due to Paypal User Agreement changes for India

    1. The most shocking is that you can do online transactions like purchasing from paypal 🙁
    2. It will impact us. No doubt about it. For ex: If you have a Infolinks account and are churning more than 500$ per month, then you can have that fund transferred to your Paypal account instead you may need to opt for a Check payment. Very bad. Isn’t?
    3. You need to make sure that you have to withdraw any amount that you get into Paypal in 7 Days. I remember that to transfer the Paypal funds to the Indian Bank account. You should transfer more than 7000 INR equivalent USD so that there would be no charges. But now due to this change, there might be situation where your amount to be transferred may not exceed 7000 INR. Will Paypal remove that condition of charging from customers?. Time will only tell

    We may need to start using Credit Cards or other ways to do Online Transaction.

    Do share your thoughts on this decision taken by RBI. Is it right? Why did they take this decision?

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    1. Anish KS says:

      Its not the problem with Paypal, RBI is changing terms and conditions day by day, we bloggers are now the victims of these bloody rules.

    2. Hey Nihar, You mean now we will not able to do purchases from our paypal account 🙂

    3. I too received this email from paypal stating the same news. Really upset with the decision taken by RBI. Every time while transferring funds we are going to give our a/c holding bank a massive amount.. 🙁

    4. In my opinion it’s a bit harsh but let’s face the reality. Many people keep the money in PayPal (like a dollar account) to convert it at a time when USD-INR rates are good. Hence it’s a good move but they should make it something like 30 days (instead of 7 days) so that it’s more realistic for most people. Otherwise, you end up doing 5-6 withdrawals per month. And the $500 per transaction is crazy! I mean, how can you limit the amount of money you should receive from a service?

      Legally speaking not using the PayPal proceeds for further purchase is a good move because you are supposed to pay taxes for the money received. But again, they should have simplified this by PayPal reporting the purchases to the RBI than us unable to do such transactions.

    5. rahul says:

      Its such a shocking news for bloggers..Hope RBI changes its terms soon,otherwise we should be using now credit cards..

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