RBI might suspend PayPal Services again

According to Jaimon Joseph, IBN Live, the problems with PayPal in India with RBI is not over yet. With all the drama that happened with PayPal users In India in February, PayPal need to answer detailed questionnaire which was sent to PayPal by Reserve Bank of India.

RBI PayPal

RBI PayPal

Though the issues was temporarily resolved by introduction of Purpose Code last month if PayPal doesn’t passes the RBI test, the service can be suspended back.

When Jaimon Joseph, checked with Alpana Killawala, at the Reserve Bank of India this is what he got :

All money flowing across our borders is subject to two major laws. The Foreign Exchange Management Act (FEMA) and the Payments and Settlements Act of 2007.

According to those laws, organizations like PayPal should have submitted themselves to scrutiny by the RBI. They hadn’t, so they were pulled up. To prevent inconvenience to customers, the Reserve Bank has allowed PayPal to honor all transactions done up-to January this year. But they’re still on the watch list.

So in short the best way would be to drop PayPal payments for a longer duration and look for either Wire transfer, Western Union or Check payments which aren’t easy as PayPal but your money safety comes first.  So did you stop using PayPal Yet ?

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.