Personal PayPal Payments in India To Be Suspended for Few Months [Official Update]

For those who have already been following the PayPal problem in India, you might already know that PayPal has stopped processing Personal payments to and from India. I did write a rant about PayPal as they did all of this without intimating it’s customers.

However, it looks like there is some clarification on the issue from the official PayPal Blog, according to the new blog post, the problem occurred because of enquiries from India regulators with questions on whether personal payments constitute remittances into India.

Personal payments to and from India are suspended for a few months until they will be able to resolved the questions with Indian regulators. However, a good news is that local bank withdrawal will be available in the next few days, so you will get a chance to empty your PayPal account for good.

If a PayPal reversal has left you with a negative balance you will have to ask the sender to use the Purchase option for sending money to you. This is again a pain and I am sure that many of you will not be able to recover the money that was reversed.

PayPal has come clean, however, I believe that it did a bit too late after it’s reputation took a huge hit. If PayPal would have been a regular bank they would have totally been taken out by the RBI, however, what can we say, we rely on it.

For more info on this, visit the Official PayPal blog post here.

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Keith Dsouza

I am the editor-in-chief and owner of Techie Buzz. I love coding and have contributed to several open source projects in the past. You can know more about me and my projects by visiting my Personal Website.I am also a social networking enthusiast and can be found active on twitter, you can follow Keith on twitter @keithdsouza. You can click on my name to visit my Google+ profile.

  • Ok, That's great that we are going to withdraw money from Paypal soon. But why Paypal is denying payments from websites for which so many Indians are working?

  • kumar

    hey, I rec total of $1400 which was reversed to sender when i selected the option of withdrawing it to local bank. Now I asked the sender to send it again and when they have sent it with services/good option, my account says only $1300. They have deducted $100 as currency exchange and other fees when I have not got the money only. Strange to know the paypal can do all that. Does someone know how to get this $1300 out of paypal safely?

  • It removes paypal reputation to indian people. Why they removed to indian people only.

    Now, paypal eat lots of paypal money from indian people. Lets see how much they eat.

    • The roll of Indian regulator for the above Paypal issues can not be entirely ruled out. Paypal has already made it clear that it is refunding all the charges that it had deducted earlier

  • Yes, you are very much right, you cannot open a PayPal account for Charity, if your charity is registered in India, same thing happened with me also, I applied a Charity account for my client and after completing all the formalities they just denied for the account.
    I have a suggestion for you, apply for a normal account with some other website and then use it for your Charity website, I have list of websites who are doing the same thing.
    You can also try some other Payment Gateways like CCavenue, but in case you are using Vbulletin script, I don’t think so that it may help you. The first suggestion may work for you.

  • Neha

    This is the paypal India official blog area: .
    Also Indian webmasters — don’t go for Paypal given it’s history of woes for Indian customers, instead consider Indian payment gateway companies.