Thread: Paypal's New Terms for Indians.

That article changes the perspective on this issue.

But it did not address the issue of why PayPal will not allow an account to be used for payments for goods and services. That's a major issue for anyone in India who uses PayPal to pay for contracting services, domains, web sites, etc.

I hope the equation is simple.

1. Receive payment then transfer it to your bank account [within 7 days]

2. Send payment using Credit card.

The only issues is, even if you earn $1 it should be transfered to your bank account with in 7 days. So obviously paypal will deduct Rs50/- as your transfered amount is less than Rs7000/-

You can not wait for your PayPal balance to reach optimal amount to transfer to your bank.

^^^ You can't withdraw $1. You need atleast $10 to withdraw dude.

I would like to know how the banking authorities in US, UK, AU and EU treat paypal.

After reading that article, I do feel that PayPal should be treated as a bank. And I do take back my statement that I made earlier about the Indian banking system.

But the ones who are suffering are small business owner and freelancers. The banks must make it easy for them to carry out their transactions in a easy way. I wish nationalized banks like SBI provided VCCs.

I would like to know how the banking authorities in US, UK, AU and EU treat paypal.

In the UK, PayPal works just fine, I love it.

But in Japan it is useless for business. I was hoping to get direct payments to a Japanese bank for PayPal to avoid the hassle of international bank transfers involving fees and telephone conversations, but Japan is only just getting used credit cards and is mostly a cash-based society, so it will be another decade I guess before PayPal is useful here.

Originally Posted by . .

More on Paypal India vs RBI drama here Why Is PayPal Screwing Indians? An ex-RBI Employee Tells Me The Facts & Few alternatives to Paypal for Indians Paypal Alternatives in India

I'd not blame RBI for the mess, it's more on Paypal!

I still blame the RBI. It seems clear that they are creating rules to protect Indian banks from competition from PayPal. They want to force PayPal to operate like an Indian bank -- which it cannot do without radically increasing fees. So, PayPal has two choices -- it can reduce services as required by the RBI or it can increase fees enough to cover the RBI regulations -- which will effectively kill it.

Perhaps the RBI should try to force Indian banks to do PayPal's job, instead of the other way around.

Or, perhaps the Indian people should get rid of the RBI before it destroys the Indian international small business sector of the economy.

Indians should be free to use PayPal, or not to use PayPal. The government has now defined PayPal's services so small that it is almost useless to Indians. Effectively, the government has driven PayPal out of the Indian market and reduced the choices available to millions of small business people.

This is not terribly different than the Colorado state government implementing reporting rules on Amazon which were so onerous that Amazon was forced to terminate all of their affiliates in Colorado. As my business was based in Colorado, Amazon was forced to fire me due to the governments avarice. I do not blame Amazon for this and I do not blame PayPal for their reduced service levels in India.

Remit2India.com seems that a good alternative for providers that have bigger jobs.

The new rule that funds need to be transfered to your bank account with in 7 days will make it extremely difficult for part-time free lancers doing small 'dollar' jobs.

May be the time for Paypal in India is nearing an end. Paypal won't budge because if it does, then other countries may ask for the same and neither won't RBI because it has to follow rules which were made long before Paypal came to India.

However, the nationalized banks in India must make it easy for the growth of small business owners and freelancers. Atleast they should provide VCCs because except 2-3 private banks, no other government bank provides this facility. VCCs are the only solution to buy stuffs on the internet when you are not eligible to own a credit card.

Originally Posted by rome9t9

May be the time for Paypal in India is nearing an end. Paypal won't budge because if it does, then other countries may ask for the same and neither won't RBI because it has to follow rules which were made long before Paypal came to India.

However, the nationalized banks in India must make it easy for the growth of small business owners and freelancers. Atleast they should provide VCCs because except 2-3 private banks, no other government bank provides this facility. VCCs are the only solution to buy stuffs on the internet when you are not eligible to own a credit card.

Perhaps they can work out a middle ground.

Originally Posted by bogart

Perhaps they can work out a middle ground.

There's not much motivation for them to do so, because these regulations have no impact on government employees. Those folks aren't using PayPal to earn money and feed their families, so they don't see why any of this is important.