It is beginning to sound as though this problem with Paypal has been caused by Indian financial regulations. However, no one is, as yet, certain of that.
There is little information being given by Paypal about the situation with regard to payments for people in India, except for the email that was quoted here.
However, contrary to reports on the internet that say Paypal has offered no excuse, or justification, they have attempted an explanation. They have said that they are trying to prevent personal accounts being used for business purposes in an attempt to avoid paying Paypal fees.
There seems to be something underlying this though because I am sure that many people in US and Europe do the same thing but have not been penalised for it. However, despite all the comments, tweets and facebook comments flying around the internet I am certain Paypal does not intend to cheat anyone of their money. This is a huge company with a reputation for honesty and security over the internet, not some tin pot here today, gone tomorrow outfit.
While I do appreciate that those in Indian who need their money are suffering because of the situation, I’m sure it will be resolved quickly. Word has it that Paypal was allowing business payments but has now stopped those as well.
There are many Indian IT coders who work for companies all over the world and get paid exclusively by Paypal and they have been left helpless by the situation. Money may be sent to them but it is being sent back.
Moneylife put forward the idea that this could have something to do with FEMA, the foreign exchange maintenance act in India, or to do with the RBI money laundering legislation brought into being in India during November 2009. So, it may be that Paypal is not the one at fault. It could be that so much money is being moved into India via Paypal and headed ‘gift’ that the government has been missing out on large amounts of tax and they want the loophole plugged.
The only sure way round this until it is sorted out, no matter what the reasons are, is to find an alternative way of getting payment. As for the money held by Paypal, I am sure that it will be released shortly, along with a whole list of new rules, regulations and charges.
February 7th, 2010 at 12:04 pm
OMG.. I can only confirm this on 10th of this month, when my Triond payment comes?
February 7th, 2010 at 12:15 pm
Nice share….
February 7th, 2010 at 1:35 pm
It is a shame folk are not getting their payments. It must be very frustrating.
February 7th, 2010 at 4:50 pm
You have rather more faith in paypal than I do. I think it has too much power and too little accountability.
February 7th, 2010 at 5:48 pm
There was an absolutely hair-raising article on taxation in India (http://www.economist.com/businessfinance/displaystory.cfm?story_id=15127568 ). I would not be at all surprised if this “system” were at least partially responsible.
February 7th, 2010 at 11:12 pm
nice share
February 8th, 2010 at 9:46 am
nice share
February 8th, 2010 at 3:05 pm
thanks for the update
February 9th, 2010 at 2:34 am
thanks for the share
February 9th, 2010 at 10:27 am
thanks for info
February 9th, 2010 at 2:08 pm
Well you may be right. My own little account has been put on hold. We will have to see other forms of online money transfer and hope that Triond offers alternative forms for payment transfer. Do you guys have any suggestions?
May 7th, 2010 at 10:42 pm
thanks.