Top Story

e4m_logo.png

Home >> Digital >> Article

PayPal changes terms of service in compliance of RBI guidelines

01-February-2011
Font Size   16
Share
PayPal changes terms of service in compliance of RBI guidelines

If you’re an Indian PayPal user, then you’ve probably already read the email we’ve reproduced below – from March 1, the company will be changing their terms of service in two ways that will probably affect the way you’ve been using them. If you’ve been using PayPal to get payments for exporting goods, then you can’t use it for a transaction exceeding $500 anymore. The other change is that you cannot keep any balance in your PayPal account from March, which is likely to affect students, freelancers and others more than anyone else.


Dear…,

As part of our commitment to provide a high level of customer service, we would like to give you a 30-day advance notice on changes to our user agreement for India.

With effect from 1 March 2011, you are required to comply with the requirements set out in the notification of the Reserve Bank of India governing the processing and settlement of export-related receipts facilitated by online payment gateways ("RBI Guidelines").

In order to comply with the RBI Guidelines, our user agreement in India will be amended for the following services as follows:
1. 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; and
2. Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction.
We seek your understanding as we continue to employ our best efforts to comply with the RBI Guidelines in a timely manner.

We regret any inconvenience caused to you and hope the advance notice will enable you to plan your future use of our services accordingly. For further information, click here.

Why has the RBI made these demands on PayPal? The RBI has a rule against allowing services to function as virtual wallets – where you can put money in and take it out without having to bank it in India, denying the government its taxes. While that sounds really great to most of us, the fact is that this is something that needs to be looked at in detail by our policymakers, and not with individual corporations.
 

Tags PayPal RBI

Markus Noder, Managing Partner, Serviceplan International, shared innovative tools, ideas and methodologies to generate tangible business values

The primary reason that led to growth of OTT is the constant improvement of internet speed and service across the country: Sandeep Gupta, ACT Fibernet

Siddharth Kumar Tewary, Founder, Chief Creative, One Life Studios and Swastik Productions, on owning the IP on his most ambitious project 'Porus,' the risk of recovering its cost and his distribution strategy

Webscale plans to build the brand around smooth operations for the e-commerce sector and then move on to demand generation

The Tata Group is considering review of its Public Relations mandate which is currently handled by PR firm Edelman in association with Rediffusion. The review is likely to happen post January 2018.

KVL Narayan Rao, Group CEO, and Executive Vice Chairman of NDTV passed away at 63 after battling cancer for two years

Week 44 (October 29-November 4, 2017) of RAM Ratings saw Big FM and Fever FM dominating Mumbai. Meanwhile Fever, Radio City and Radio Mirchi dominated Delhi, Bangalore and Kolkata respectively.