Reserve bank of India going tough on PayPal users

| November 29, 2011 | 0 Comments

With a growing number of people earning  massive incomes In INDIA  from  work generated from the internet and online  relating from  website design  to coding  and programing work  , the reserve bank of india  is cracking down on income  received via PayPal  so that it remains more accountable.  With income tax evasion considered to be a widespread issue in India Smile with tongue out, it  would not be long before  this sector would  possibly go through some drastic changes.

paypal and reserve bank of india  new rules

Here are some changes  from a a FA Q

Q: Why will PayPal not allow me to receive more than US$500?
Starting 1 March, 2011, PayPal customers in India will not be allowed to receive payments for any export-related goods or services for an amount exceeding US$500 per transaction. This change is to ensure that we continue to comply with the RBI Guidelines.
Q: Why will PayPal not allow me to keep money in my PayPal balance?
Starting 1 March, 2011, PayPal customers in India will not be able to keep money in their PayPal account balance. Instead, all money received into a PayPal account must be transferred to a customer’s India bank account within 7 days from the receipt of confirmation from the buyer in respect of the good or services. This change is to ensure that we continue to comply with the RBI Guidelines.

Q: The customers on my website are not able to complete purchase or pay via PayPal. Why?
Starting 1 March, 2011, PayPal customers in India will not be allowed to receive payments for any export-related goods or services for an amount exceeding US$500 per transaction. If you are listing products greater than US$500 per transaction then you may need to seek alternative methods of payment. This change is to ensure that we continue to comply with the RBI Guidelines.

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Category: 2011, Australia, Banks, India

About the Author ()

JJay blogs on Technology related products ,websites, SEO, Social Media and blog promotion. JJay also writes articles for Stock market , Finance and business blogs and websites.

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