Paypal has been in the news off late due to its standoff with Reserve bank of India and they were forced to restrict accounts accepting limits to $500. The RBI, earlier this year, had directed PayPal to not accept any transactions that exceeded $500 in value. However now online payment receivers have a reason to cheer as this amount has been increased to USD is 3000 which is 6 times more than earlier payment. The email sent by paypal to its users is as appended below. However one need to wait for clarification to see that if it applies to the free lancers also as they have the main user base in India. Moreover if you have received any transaction more than $500 in your account after 11 Mar 2011, than be ready for the shock as Paypal is reversing your transactions and sending back the money to original senders. So your account will show negative balance for that amount. Auto debit facility is already in force in Paypal accounts.
Dear Paypal User,
We are pleased to inform you that the RBI will now allow you to receive export-related payments of up to USD 3000 per transaction into your PayPal account, effective immediately.
We sincerely thank you for your understanding and patience over the past few months as we continue to implement the changes required to remain compliant with the RBI guidelines. With these changes completed, you can confidently accept PayPal for your cross-border transactions with our global buyer base of over 100 million active accounts in 190 markets worldwide. We look forward to continuing to support your export business through our global online payment platform.
To comply with the RBI guidelines, you must add a Permanent Account Number (PAN), Purpose Code and local bank account to your PayPal account in order to continue receiving export-related payments.
In case you have any queries, please log into your PayPal account and click on
Contact Us at the bottom of any PayPal page.
Sincerely,
The PayPal Team
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