PayPal to Resume Bank Withdrawals Service by March 13

Submitted by Anuj Gupta on Sun, 02/28/2010 - 17:31

eBay's electronic payments daughter PayPal revealed that India's central bank, the Reserve Bank of India (RBI), has permitted it to resume Indian bank withdrawals for Indian businesses who make use of PayPal to sell their goods or services abroad.

PayPal was reported to suddenly block personal payments going in or coming out of accounts from Indian customers, causing a tsunami of online complaints from the latter that ranged from accusations of racism to sheer amateurism.

However, personal payments into India will remain suspended, as the RBI has told the online payment company that it requires specific approvals to allow personal inward remittances to India, Farhad Irani, head of PayPal's Asia-Pacific business, said in a post on Friday on the company's official blog.

PayPal needs authorization to operate a cross-border money transfer service, under the country's Payment and Settlement Systems Act, 2007, and it does not have it, Killawala said.

PayPal has posted that it expects to resume the bank withdrawal service by March 3. It added that it will post on its blog on March 1 with specific instructions for customers on how they can transfer their money into their bank accounts.

Source: http://www.stockwatch.in/paypal-resume-bank-withdrawals-service-march-13-24824