User Agreement Changes for Indian PayPal users starts 1st March 2011
PayPal is giving its customers in India, a 30 day advance notice on changes in user agreement. PayPal announced that the changes to the user agreement will be made to comply with the Reserve Bank of India’s guidelines (RBI Guidelines).
According to the PayPal APAC, the amends that will be made are 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.
Last year during this period Indian users faced lot of trouble when paypal blocked transaction to and from India that lasted for few months.
With the new regulations in place with PayPal will be a little more compliant with the RBI Guidelines, and will hopefully be able to fix the issues that the Indian users are having with the site.
[via – PayPal]
Update: If you think that RBI decision is wrong then you can also participate in Indian Entrepreneurs of India’s Petition to RBI (The RBI / PayPal issue of $500)