Update : Feb. 24th 2010 – There are many users who have reported that XOOM has stopped payments to India if you fund it using PayPal. As you can see in comments I tried calling the official numbers which never connects so consider XOOM as not an option from today. This news is still not verified by me and will soon do verification myself
Recently all the payments to Indian Bank accounts from PayPal have stopped and the reason for the same is RBI has asked PayPal to follow some cross country transaction laws.
Many people including me started to think that PayPal have started some malicious activity. No doubt the way PayPal handled it was really bad and till date we have not got any official email broadcast of the actual situation. I did expect an email from them but they have at least updated the Official PayPal blog with the same. Many of us are not aware of that but yes they have done that to an extent.
And I quote from it
We temporarily suspended these services to respond to enquiries from the Indian regulators, specifically questions on whether personal payments constitute remittances into India.
And also here
Customers can still make commercial payments to India but merchants cannot withdraw funds in Rupees to local Indian banks.
But the latest from Farhad Irani who leads the PayPal business in Asia Pacific was really encouraging for me and specially
It has always been possible for sellers to request a check or withdraw funds to a credit card, and these options are still available from the Withdraw Money tab of your PayPal account.
It usually takes five to seven working days for you to receive a check when you request a check withdrawal and PayPal normally charges a five USD fee. We are trying our best to help sellers during this difficult time and therefore will refund the check withdrawal fee back to your PayPal account within a week. I appreciate that this is not ideal, but please bear with us.
So there is one option for Indians to withdraw funds to your bank account.
I have tested this myself and check arrived at my place in Indian currencies and the funds are cleared and deposited into my HDFC bank account.
I know many are aware of Xoom and this is also a nice way to withdraw funds from your PayPal.
Xoom is more like a Wire Transfer to India. It is quite fast and can deposit to almost any bank account in India. Xoom is fast, easy and safe to transfer your PayPal fund to your bank.
Now there may be many questions I can think of and so first let me answer them.
Can you show us some proof of Xoom working?
When it comes to new thinks we all need proof and so yes I have done a 1000 USD transfer myself and money is deposited in my bank account.
What are the Fees for XOOM?
For Bank Deposit of $1,000 they actually charged me $29.99 but then actual fees were almost NIL. How I will explain. As we all know that PayPal USD to INR conversion is always lowest but Xoom offers much higher rate for the same and so actual amount of $1029.99 if I would have withdrawn using PayPal would have been quite close to 46,250 INR on the day I initiated Xoom payment.
So mentally PayPal has no fees and Xoom has but if you have amount close to USD 1100 with Xoom you will get more money into your bank account.
Why Go4Expert.com Switched to PayPal Alternative for $1 Daily competition?
In India Personal Payment is not an option anymore and that is not going to be an option for some time to come. This means sending $1 to anybody who wins the competition or who puts a good question is not an option in PayPal for me. So he may be charged 33% as fees for receiving $1.
If you have more questions do post them in comments and as I have done lots of talking with the PayPal guys for my withdrawals I am sure I can answer quite a few of them.
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I do lot of experimentation on new ways to internet marketing strategies for my web properties and like to share my experiences on ways to make money online @ IMTips.co. Read more about me 
{ 29 comments… read them below or add one }
Xoom keeps cancellng my payment any suggestion ??
Bohra, With Xoom when I did the transfer they did not charge my PayPal account instantly but they charged after few minutes and so this means they may have some data from the account which is not supporting.
Something like you bank account or some details. Also I have no information about what you tried in XOOM but if you are trying cash pickup then try using bank deposit.
If it still does not work you can contact the support and ask for the clarification because if it works for one it should work for the others as well.
Well even my first transfer was pretty successful but after that it kept canceling.. i am using the bank transfer.. i even contacted their support they dont reply.. i re-registered and tried contacting them again no reply
Try giving them a call if possible because with PayPal also I did call them each time and US calling is not much these days.
On what number did u call them
For Contact Us Option I see a number. It is (415) 395-4225 (outside US). Don't you see the same?
On dp i was told they dont respond on that number .. coz i dont have bsnl connection so didnt try it
Let me give it a try for you.
ok thanks
No the numbers does not connect and so only way left is to email them.
Sucks coz they dont reply ..
At least PayPal picks up the phone.
They have numbers which just don't connect and so you are only left with Check as the Payment method. Did you try that.
Hi,
I am able to get funds to my SCB Bank Debit Card. Three payment received since this problem arises.
Rechargeguru.com
Which funds and also why you are trying to get into the Debit Card?
You should just use check its the best option
And also the safest
How did you added your debit card or credit card to your payapl account? The card should have any pre-requisites? like Visa or Visa electron? When i emailed them asking for it, Paypal replied they do not support this in India! Any information help on this would be highly appreciated.
This is something interesting which I was not aware of and it looks like PayPal have a long list of things to be done before Payments in India can come back to normal
Hi Dear, I linked the credit card of ICICI Bank to my paypal account. But on enquiring from ICICI Bank, they said USD cannot be credited to the card account. Any suggestions
I have never been a fan of withdrawing money to credit cards and many sites offer that and have never given that a try. I think Check option should work best for you.
Dear Ganesh,
We're the Customer Service Team at ICICI Bank and we'd request you to contact paypal for further clarifications.
Regards,
ICICI Customer Service Team.
Previously, Indian PayPal users were able to use Xoom for withdrawing money from their PayPal account to their Indian local bank account.
But starting from yesterday, Xoom is also NOT working. All the recently started Xoom transactions are getting refunded to PayPal account.
http://qualitypoint.blogspot.com/2010/02/xoom-w…
I got this today.
Dear Shabbir Bhimani,
We have been diligently working with the RBI and our business
partners to resume Indian bank withdrawals for the thousands
of Indian businesses who depend on PayPal to sell their goods
or services in the global marketplace.
Today, we are happy to announce that the RBI has allowed us
to continue local bank withdrawals for settlements for exports
of goods and services. We are currently making changes to
comply with Indian regulations for settlements for exports of
goods and services, and we anticipate that, as of Wednesday,
March 3rd, customers will be able to use our
bank withdrawal service.
As part of the changes, you will be required to fill out a
new field entitled 'Export Code' when you request a withdrawal.
This information is required under the current laws of India in
order to identify the nature of cross-border merchant transactions.
On Monday, March 1st, we will be back in touch with specific
instructions on how you can move your money into your bank account.
Moving forward, the RBI has told us that PayPal needs specific
approvals to allow personal remittances to India, which we
currently do not have. Until we get these approvals, personal
payments into India will remain suspended. However, if you are
an exporter, you will continue to be able to use the PayPal
service for payments of goods and services. In fact, with the
changes we are making to our system, PayPal is now set to be a
more powerful engine for exporters in India. With purpose codes
for export transactions and FIRCs (Foreign Inward Remittance
Certificates), you should now be able to get the export
related benefits you seek.
You can check the PayPal blog for additional updates.
http://www.thepaypalblog.com
We thank you for your business and for your patience during
the past few weeks.
Sincerely,
The Official Blog – https://www.thepaypalblog.com/2010/02/resuming-…
A new fact about Pay Pal :
I applied for a charity account with Pay pal because its free and supported by vbulletin software for payment subscription, I have all the documents like NGO Registration certificate, Memorandum of Society, Society PAN card, and the Bank details , bank details were verified by the Pay Pal by depositing amount of Rs. 2 and 40 paisa, after submitting all the document as per said in their website and in their emails, they again asked me for a authorization letter from our Society members on the letter head of the Society, I submitted it as per they said, but after completing all the formalities they denied me for the account, just because they have no tie-up with India regarding charity account, what the hell is this, why the pay pal people should not mention at the time sign up process. I have wasted around 1000/- rs in doing fax to pay pal and after 4-5 days they denied. Now I have no other option left, so I signed with ccavenue, but the cost of basic signup is around 8500/- and the per annum fee is Rs 1500/- after tax, I think PayPal is playing with Indian customers, We wrote a letter against this to the Reserve Bank of India, and also file a RTI to know the working of PayPal in India, after searching on the Internet we also found that PAYPAL is run by ebay, and found tons of complaints against ebay http://www.consumercourt.in/online-shopping/ , after collecting data of ebay customers, we called them personally and found a big scam, we are planning to file a Public Interest litigation, against HomeShop 18, IndiaTimes Shopping, Ebay, AVA etc,
Don't apply for a charity account with pay pal if you are living in India. Just wastage of time and money.
Very much align with Sonia, PayPal is doing monopoly here, transaction fee while transfer amount to your bank……Huge.
No other option available here…. ccavenue is too expensive.
Suman, See http://imtips.co/paypal-india-withdrawal-fees-waived-off.html
Yea i ordered a check its processed and probably in the way but that would take time i was looking for a faster way maybe i should try some bank wire transferer
I have not heard of anyone doing wire and getting the money in the bank but you can give it a try.
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