RBI Limits use of PayPal for Indians
PayPal recently gave a blow to all the internet marketers, bloggers and web designers based in India. For everyone who uses PayPal as a payment option for their services must know that ‘PayPal is Almost Gone’.
Their new terms and services are in compliance with the rules and regulations imposed by RBI (Reserve Bank of India) that monitors all the accounts of cash flowing in and out of the country.
Some people might be blaming PayPal for this and some might be releasing their anger and frustration on RBI but who’s the actual culprit, let’s dig into little facts and details and get a clear picture of what we are dealing with at the moment.
The RBI & PayPal Connection
Some people after reading about this issue might wonder, “What does RBI has to do with PayPal, they are not even related”. But that is not how it is.
PayPal is an e-currency website, it lets people to send and received money across the globe, and it is similar to sending money via bank wire transfers across countries.
Now, have you sent any money or received money from another country? Did you pay taxes to Indian Government? Sure you did. With PayPal many people evade taxes and that is what is pinching Indian Govt.
You might not be getting enough on PayPal yearly but many internet marketers, affiliate marketers and bloggers are earning more than $1000/month that computes to $12000/month 20% of which must be paid in taxes according to the latest IT slabs for Indian Men.
Since PayPal earning can’t be monitored by RBI, they have forced PayPal to limit transaction to <$500 per transaction and send all the money within PayPal to bank accounts within 7 days.
What can be done?
See if PayPal doesn’t comply with terms and conditions of Reserve Bank of India, they will be banned and you would lose the remaining 70% of your earning. It is quite important that you pay your taxes, it for country’s benefits.
I know it stings a little bit to give away your hard-earned cash but that is the way it is.
From now on you can’t shop online using PayPal and would have to pay extra money in currency conversion as you dollar amount would be transferred to your bank account in Rupee format.
I know it would limit the amount of online business, it would create fear in newbie marketers but that is the way RBI wants cash flow in our country.
What do you think about the RBI intrusion in the lives of Indian Online Business People?