What will PayPal India do if you dont transfer money to your bank account in 7 days ?

RBI Guidelines for PayPal has now made it almost very difficult for many business to use as PayPal to get money into their account and if you have an online shop ( export specially ) and you are using PayPal as one of the payment methods, you will have to look for alternative ways.  Two things are very clear :

  1. You cannot buy goods or services with the amount you receive in your PayPal.
  2. So what you will do with that money ? You should transfer into your bank account in next 7 days.
  3. If you sell products which is priced more than 500 USD, you can’t use PayPal as payment gateway.

RBI PayPal

Point 1 and Point 3 are very clear but what will happen if one does not transfer money to Bank Account in 7 Days ( Point 2 ) . Will they suspend the account ? or will the money be held up ? PayPal should add this answer in addition to the FAQ.

However the catch is the money which you receive as a part of good or services should only be transferred. So if you have received money as Gift that should not be a problem.

PayPal India Frequently Asked Questions : ( Official link )

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: Will my customers be able to complete their checkout with their PayPal account balance?

We’re glad that you offer PayPal to your customers. Unfortunately, we will not allow customers in India to send money from their PayPal account balance starting 1 March, 2011. This means that your customers will need to link a credit card to their account in before sending you money with PayPal. 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.

Q: What is meant by receipt of confirmation from the buyer in respect of goods and services?

As an exporter of products or services abroad, you need to ensure that your buyer has received the product or services as per specifications set out on your website. As an exporter of goods, you may withdraw the balance to your bank account in India upon reasonable consideration of shipping time and other clearances such as excise and customs for the destination country. As an exporter of services, you may withdraw the balance to your bank account in India upon receipt of payment from your buyer into your PayPal account.

Frequently Asked Questions:
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: Will my customers be able to complete their checkout with their PayPal account balance?
We’re glad that you offer PayPal to your customers. Unfortunately, we will not allow customers in India to send money from their PayPal account balance starting 1 March, 2011. This means that your customers will need to link a credit card to their account in before sending you money with PayPal. 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.
Q: What is meant by receipt of confirmation from the buyer in respect of goods and services?
As an exporter of products or services abroad, you need to ensure that your buyer has received the product or services as per specifications set out on your website. As an exporter of goods, you may withdraw the balance to your bank account in India upon reasonable consideration of shipping time and other clearances such as excise and customs for the destination country. As an exporter of services, you may withdraw the balance to your bank account in India upon receipt of payment from your buyer into your PayPal account.

About Ashish Mohta

An analyst who writes about undiscovered,unknown and untalked topics for people who want to to know more about India and Indians.

4 comments

  1. Bravo RBI!

    Aise Ulta chalnese Firse ham angrezo ko online ke jagah firse Offline serve karne ke mauka Payenge. :):

  2. Way to go RBI! ** us small time businessmen from left,right,center & behind!
    *Applause*
    WTF!

  3. Way to go RBI! ** us small time businessmen from left,right,center & behind!
    *Applause*
    WTF!

  4. Bravo RBI!

    Aise Ulta chalnese Firse ham angrezo ko online ke jagah firse Offline serve karne ke mauka Payenge. :):