Few days down RBI shown some security concern over the Paypal transactions and asked Paypal to suspend the option of withdrawing of money through Local Banks in India. Now Paypal has resumed Local Bank Withdrawals to India after addressing the issues and concerns raised by RBI.
The Paypal mail to it’s users reads as follows :
We have been diligently working with the RBI and our businesspartners to resume Indian bank withdrawals for the thousandsof Indian businesses who depend on PayPal to sell their goodsor services in the global marketplace.
Today, we are happy to announce that the RBI has allowed usto continue local bank withdrawals for settlements for exportsof goods and services. We are currently making changes tocomply with Indian regulations for settlements for exports ofgoods and services, and we anticipate that, as of Wednesday,March 3rd, customers will be able to use ourbank withdrawal service.
As part of the changes, you will be required to fill out anew field entitled 'Export Code' when you request a withdrawal.This information is required under the current laws of India inorder to identify the nature of cross-border merchant transactions.
On Monday, March 1st, we will be back in touch with specificinstructions on how you can move your money into your bank account.
Moving forward, the RBI has told us that PayPal needs specificapprovals to allow personal remittances to India, which wecurrently do not have. Until we get these approvals, personalpayments into India will remain suspended. However, if you arean exporter, you will continue to be able to use the PayPalservice for payments of goods and services. In fact, with thechanges we are making to our system, PayPal is now set to be amore powerful engine for exporters in India. With purpose codesfor export transactions and FIRCs (Foreign Inward Remittance Certificates), you should now be able to get the exportrelated benefits you seek.
You can check the PayPal blog for additional updates.
We thank you for your business and for your patience duringthe past few weeks.
Since the issue with Paypal India operations many of the users was not able to receive any personal payments and also not able to withdraw the money. Now I think users can withdraw money as usual.