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.