PayPal has just sent an email stating that the receiving limits for Indian accounts has been raised to $3000 per transaction from the previous $500.
In the recent past, PayPal and RBI have been problematic for Indian users. First off they started out by suspending Indian Payments for which I wrote a long and personal rant. Secondly, they asked Indian users to add PAN (Permanent Account Numbers) and also stopped electronic withdrawals in India for a brief period.
Thirdly, they stopped PayPal India users from buying anything with their PayPal account. This created a huge problem for millions of PayPal users and I had the chance to talk to a past RBI employee and find out the facts about why PayPal was being restricted.
However, after almost 18 months of turmoil, PayPal and RBI seem to have patched up and they are now allowing Indian users to receive up to $3000 per transaction from the earlier limit of $500 per transaction. In an email sent to PayPal India users, PayPal says:
We are pleased to inform you that the RBI will now allow you to receive export-related payments of up to USD 3000 per transaction into your PayPal account, effective immediately.
We sincerely thank you for your understanding and patience over the past few months as we continue to implement the changes required to remain compliant with the RBI guidelines. With these changes completed, you can confidently accept PayPal for your cross-border transactions with our global buyer base of over 100 million active accounts in 190 markets worldwide. We look forward to continuing to support your export business through our global online payment platform.
To comply with the RBI guidelines, you must add a Permanent Account Number (PAN), Purpose Code and local bank account to your PayPal account in order to continue receiving export-related payments.
Users still need to have a purpose code for receiving payments and you can find that in a Purpose Code for PayPal PDF we had created earlier.
PayPal also recently launched auto withdrawal of funds from Indian accounts and then removed the withdrawal fees as well. However, it also messed up by screwing up validation of PAN numbers for Indian users.
All in all, this sounds like a pretty sweet deal from RBI and PayPal to solve the issues Indian users faced and should be helpful to young entrepreneurs and freelancers to get their money hassle free.