PayPal under RBI’s Direct Investigation

PayPal under RBI’s Direct Investigation

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

paypal-india

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?

13 thoughts on “PayPal under RBI’s Direct Investigation

  1. RBI and the Govt. of India and the politicians wants their own pockets to get filled with our efforts, while a common man continues to beg.

  2. PayPal is a cheat and cheats seller and what can you expect from a company as ebay owns paypal they both are cheats. There should be safe alternative to Paypal and eBay both. They even give less amount after conversion to people. Go against sellers and refund money without even listening to a seller. I would rather pay tax then pay any American fraud company to be cheated only. PayPal and eBay both should be banned but these currupt hungry greedy politicians would take money from these greedy companies and let them make a fool out of Indians who knows nothing except to fill thier own stomach and be made a fool of. SCREW BOTH PAYPAL AND EBAY

  3. i dont understand <$500??

    is rbi saying to sell goods under $500?

    or

    for 7 days the paypal account balance should be less than $500??

    my question is suppose if i get $1000 thru paypal per week can i transact it to my bank account??
    plzzzzzzzzzzz reply

  4. RBI people do not know importance of paypal on online business, it is not possible to run a online business without paypal, let RBI official try to do online business without paypal or let them try the business with their latest guidelines, it is not possible to do online business with their latest comic guidelines

  5. governmant (politicians or SOB’s) are looting lotta money sniffig IT dept & they won arrest these public leaching #*#*#*#*#*# politicians x( cz of the polticians we gotta pay tax x( if those SOB’s gave all theirs black currency to Govt india ll be wealthiest country & no need of taxes..!!

  6. I don’t mind being taxed but I hate it when I am unable to make online purchases using Paypal… RBI should not have done that..

    • now we won’t be able to buy stuff online, no matter what. you can buy from ebay after transferring your funds to bank account but not with paypal.

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