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RBI has now allowed PayPal to resume bank withdrawals
[2010-02-27]
RBI has now allowed PayPal to resume bank withdrawals against exports of goods and services.PayPal is making changes to follow regulations of India regarding export of goods and services.
In their blog,PayPal authorities says they will be able to resume the bank withdrawal services from Wednesday,March 3rd.In order to withdraw money to the local banks,account holder will need to provide 'Export code' to the PayPal which they will ask through a field while withdrawing the money.They say 'Export code' is required under the Indian laws for identifying the nature of merchant transactions with other countries.
"Moving forward, the RBI has told us that PayPal needs specific approvals to allow personal inward remittances to India, which we currently do not have. Until we get these approvals, personal payments into India will remain suspended. However, if you are an exporter, you will continue to be able to use the PayPal service for payments of goods and services. In fact, with the changes we are making to our system, PayPal is now set to be a more powerful engine for exporters in India. With purpose codes for export transactions and FIRCs (Foreign Inward Remittance Certificates), you should now be able to get the export related benefits you seek."
Says Farhad Irani of PayPal.
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