If you want to get behind the history of me and PayPal, you better head over and read this older
post rant of mine. PayPal has been and is being screwing people in India because they basically cannot adhere to standards laid down by the Reserve Bank of India.
In a recent email sent out to PayPal users in India, they have said that they will be laying down new rules for Indian users starting from March 1st, 2011. Here are some of the highlights, you can read the rest here.
In order to comply with the RBI Guidelines, our user agreement in India will be amended for the following services as follows:
- 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
- Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction.
So PayPal is practically telling Indian users that they cannot buy anything from their money in PayPal and instead have to use their "f*cked up" exchange rates so that you lose money and then pay a "premium" on exchange rate conversions when you buy things from out of the country.
In addition to that they are telling developers and web designers that you cannot earn more than $500 per transaction. Now try explaining to your clients that they will need to take the effort to send you money in multiple transactions.
Alright, I am not going to go on with this humbug, please continue for me in the comments.
Please don’t blame the Reserve Bank of India (RBI) for this. For the record, here are the FEMA regulations (Foreign Exchange Management Act, 1999) which clearly state how businesses like PayPal should operate in India, and PayPal is definitely one of the biggest violators of it.
More PayPal shenanigans at their official blog. At least they didn’t f*ck royally when it comes to intimating users.