As per PayPal, to become compliant with RBI Guidelines they suggested –
Effective March 1, 2011 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.
So my understanding of the above statement was that if we wish to purchase any good or services and still want to pay using PayPal, we need to pay using our credit card on PayPal account and can’t use PayPal funds as source of fund. Today when I purchased couple of domains from Godaddy and made the payment through PayPal, I expected the payment to be deducted from my credit card but to my surprise it was deducted from my PayPal funds.
The guidelines I am quoting can be seen if you login to your PayPal India account by clearing your browser’s cache.
In the screenshot above PayPal remind Indian’s about “RBI Guidelines” but they lag the same. What an Irony? Today is March 9 and if PayPal don’t follow what they drafted, I really doubt on functional aspect of PayPal. What about you?
Further Reading …