PayPal users in India will be asked to use Cheque withdrawal instead of electronic withdrawals for their funds.PayPal has announced the removing the electronic withdrawal functionality for Indian users from August 1, 2010. The only option would be to request for a withdrawal of funds by cheque. According to PayPal, this decision had to be taken in accordance with “regulatory instructions”. PayPal stated that while the company is working towards restoring the facility it has the alternative options in place for future payments which is the cheque payment process. The company is ready to waive the $5 USD cheque withdrawal fee to for cheque withdrawals made from July 29, 2010 onwards, it said.
For users who have been using the electronic withdrawal facility, here is how to request for a cheque withdrawal:
* Log into your PayPal account, click on ‘Withdraw’.
* Click on the ‘Request a cheque from PayPal’ link.
* Enter the withdrawal amount and select your mailing address, then click ‘Continue’.
* Click ‘Submit’ to confirm your request.
This is second such announcement that has affected Indians using PayPal service. In February, PayPal announced the suspension transactions to and from India. However, the order was restored after it announced the resumption of the payment services a few weeks later. That was after the Reserve Bank of India gave a green signal to restart bank withdrawals for settlements for exports of goods and services.
A new fact about Pay Pal :
I applied for a charity account with Pay pal because its free and supported by vbulletin software for payment subscription, I have all the documents like NGO Registration certificate, Memorandum of Society, Society PAN card, and the Bank details , bank details were verified by the Pay Pal by depositing amount of Rs. 2 and 40 paisa, after submitting all the document as per said in their website and in their emails, they again asked me for a authorization letter from our Society members on the letter head of the Society, I submitted it as per they said, but after completing all the formalities they denied me for the account, just because they have no tie-up with India regarding charity account, what the hell is this, why the pay pal people should not mention at the time sign up process. I have wasted around 1000/- rs in doing fax to pay pal and after 4-5 days they denied. Now I have no other option left, so I signed with ccavenue, but the cost of basic signup is around 8500/- and the per annum fee is Rs 1500/- after tax, I think PayPal is playing with Indian customers, We wrote a letter against this to the Reserve Bank of India, and also file a RTI to know the working of PayPal in India, after searching on the Internet we also found that PAYPAL is run by ebay, and found tons of complaints against ebay http://www.consumercourt.in/online-shopping/ , after collecting data of ebay customers, we called them personally and found a big scam, we are planning to file a Public Interest litigation, against HomeShop 18, IndiaTimes Shopping, Ebay, AVA etc,
Don’t apply for a charity account with pay pal if you are living in India. Just wastage of time and money.