From 1st February, 2010, PayPal stopped the Bank Withdrawal and receiving money as “Personal Payment” to and from India. That created havoc panic throughout Indian PayPal users and they (PayPal) claims that they have restored the withdrawal process.
According a blog post made by Farhad Irani (Head in PayPal Business, Asia Pacific) on 26th February, PayPal resumed the withdrawal.
I’m pleased to tell you that the RBI has now allowed us to resume bank withdrawals for settlements for exports of goods and services.
But, the actual scenario is a little different. A screenshot bellow will show that a withdrawal request made on 1st March is still pending as on 6th March, 2010. It’s because the user requested it before the fully implement the “Purpose Code”.
There was another update from Farhad on 1st March, with instructions on how to proceed to withdrawals in proper way. According to him, you have to select a purpose for your withdrawal. I guess this is something that force users to show the money on tax files.
When you select the ‘Withdraw Funds’ option on your PayPal account after March 3rd, we will ask you to fill out a new field entitled ‘Purpose Code’. This information is required under the laws of India in order to identify the nature of cross-border merchant transactions.
The last update was from Anuj Nair on 4th of March officially stating the restored service.
But, there is still no update for the “Personal Payment” option to send/receive money to or from India and no update on the fees taken while reversing those payments. This is still a concern as many of us lost thousands of dollars for that. I hope that they now focus on the matter.
Hello,