Paypal amends User Agreement for India

Levies $500 per transaction cap for receiving payments

Last year, PayPal went through some strenuous guidelines and regulations laid down by Reserve Bank of India. Thankfully, PayPal did restore the e-withdrawals for India. Today Paypal has sent out a 30-day advance notice for Indian users to comply with the new guidelines. From March 1, 2011 onwards Indian PayPal users won’t be able keep PayPal account balance and won’t be able to receive payments more than $500 per transaction. As surprising it may sound, PayPal has made these amendments to “comply with the RBI guidelines” laid down for the online payments services.

Basically these are the three amendments in PayPal User Agreement for India that would be effective from 1 March, 2011.

– PayPal won’t let Indian users receive payments for more than $500 per transaction
– Indian Users won’t be able to keep money in their PayPal account balance.
– Customers will have to link their Credit Card to their PayPal account for money to Indian PayPal account users.

Here’s the email sent out to PayPal users:

Dear user,

As part of our commitment to provide a high level of customer service, we would like to give you a 30-day advance notice on changes to our user agreement for India.

With effect from 1 March 2011, you are required to comply with the requirements set out in the notification of the Reserve Bank of India governing the processing and settlement of export-related receipts facilitated by online payment gateways (“RBI Guidelines”).

In order to comply with the RBI Guidelines, our user agreement in India will be amended for the following services as follows:

– Any balance in and all future payments into your PayPal account may not be used to buy goods or services and must be transferred to your bank account in India within 7 days from the receipt of confirmation from the buyer in respect of the goods or services; and

– Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction.

We seek your understanding as we continue to employ our best efforts to comply with the RBI Guidelines in a timely manner.

We regret any inconvenience caused to you and hope the advance notice will enable you to plan your future use of our services accordingly. For further information, click here.

If you have any questions, please contact PayPal customer support by logging into your PayPal account and clicking on ‘contact us’ at the bottom of the page. We sincerely thank you for your patience and continued support.


The PayPal Team

More details about the same can be found “” here. PayPal has been forced by RBI to comply with the rules laid down in order to meet requirements for facilitating export-related receipts. In short, PayPal has made it difficult for Indian users to use its service – Thanks to RBI. Now several India users are bound to opt for PayPal alternatives.


About pratyushkp

A Newbie Social Media Blogger , Social Network Addict , Social Gamer ( Mafiawars , Farmville) , Working as a Marketing Specialist for a E-cards company.

Posted on January 31, 2011, in Social, Technology and tagged . Bookmark the permalink. Leave a comment.

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