There have been many different issues with regards to Paypal Payments to India, Paypal to Bank Withdrawals, Paypal Payments being refunded back to the sender and this problem has been happening from around 28th January 2010. I did have come through multiple transactions and here are few of the issues i have personally come through.
As you can see in the above screenshot from 25th Jan 2010, i did have regular transactions in Paypal with payments to different parties and services and even had received payments from sponsored reviews, but none of these were reversed. Effectively as per different messages and emails, the problem of Payments being refunded and also funds transferred to their Bank accounts is not being completed from the 28th Jan 2010.
The issues in my account started from 1st of Feb 2010, following which all the payments i had made to other parties and the ones i had received were all reversed by Paypal. Along with this the Bank Withdrawal made sometime back was also reversed and i had no other option but just to wait for this to be solved. Paypal announced that all the payments which were made using the Personal Option have been reversed and this is limited only to the Indian Paypal Users and this would be fixed soon.
Here are few Answers by Anuj – Paypal Executive :
- Why did you suspend local bank transfers and personal payments to and from India?
We temporarily suspended these services to respond to enquiries from the Indian regulators, specifically questions on whether personal payments constitute remittances into India. We’re working with the regulators and our bank processing partners in India to get this resolved as quickly as we can. We realize that this is causing considerable inconvenience to our customers and I want to reassure you that this is a top priority for the leadership at PayPal- When will personal payments be turned back on?
The regulators recently let PayPal know about revised licensing rules that we are now actively engaged in securing. Personal payments to and from India will be suspended for at least a few months until we fully resolve the questions from the Indian regulators.- When will local bank withdrawals be available?
Customers should be able to withdraw their funds to a local bank within the next few days. In the meantime, we’re going to restore the money into the PayPal accounts of any customers in India who have initiated a recent withdrawal, so they know that the money is safe in their accounts. Customers will also be reimbursed for any withdrawal fee charges.- The PayPal reversal has left me with a negative balance. What shall I do?
If you bought something or transferred money out of your PayPal account to your bank account before we reversed the payment then you may be left with a negative balance. If this was a payment for a purchase of goods or services, you should contact the sender and have him or her resend the payment as follows:
(a) click the Send Money tab, and
(b) select “purchase.”
If this was a personal payment, then the sender will need to find another payment method until we restore the service. We’re sorry about this.
If you can’t recover the funds from the sender, you can bring your PayPal balance current by logging in to the PayPal account and clicking the “Resolve Negative Balance” link on the Account Overview page.- My payment was reversed but it was not a personal payment. What happened?
Only personal payments should have been reversed. Customers who believe that their payments were reversed in error should request that the payment be sent again by following the steps above (click the Send Money tab and select “purchase.”)If you are still having problems, please contact PayPal customer support
I hope that this helps clear up some of the confusion around the situation in India and I’d like to take the opportunity to personally apologize on behalf of PayPal for the inconvenience that this is causing our customers.
Still if you have issues with this problem and are looking for a solution, check out a Paypal Alternative
what I’m frustrated is the way refunded the bank withdrawal. I withdrew with a rate of around 44. and they refunded it back with 48. When it is the problem of Paypal they should not have done this way. If it was the bank which returned it I agree to what paypal has done. I lost over $100 USD.
But thats something Paypal cannot do anything about, because the rates have changed now.
Again i would support your point too because if Paypal had notified the users, we would have not withdrawn the money and wasted the time and the loss in exchange rates.
ask them to credit that extra currency exhange amount on phone. They will do that. I got a credit of $40 after I spoke the customer care. Best of luck
Just got a mail from support that they would return back the money without effecting the exchange rates, but this might take some time. So lets hope the exchange rates are not effected.
BTW rates havent changed much when I withdrew and yesterday.
Thanks for the info. Hope the issue will be reloved soon
Can we withdraw the paypal fund to our bank directly..?
hello everyone.i am an indian and i would just like to inform that i have received a personal payment through paypal from one of the PTC websites.does that mean the prolem has been solved.
hi
i have a pblm for paypal.how to transfer with paypal to my bank account.pls guide me quick.
Thanks
Thanks Amith for detailed post, My infolinks $ There, hope they will resume transaction in India.
Glad to have come across this post. Mine $10 from ReviewMe was refunded and I was clueless why it happened.
Paypal returned my exchange rate without any cut.
But anyone can suggest when we can withdraw.
Hi Arijit,
I have requested a withdrwal on 11 feb and it shows completed at paypal. Wait for a day or two. I will comfirm you the outcome.
Alok,
Did you get your money at your bank which you withdrew on 14th? What is the outcome?
What are the alternatives to PayPal for getting funds to indian banks, similar on the lines of PayPal?
PayPal problem of not being able to send money to india, doesnt seem to be solving soon, please suggest some alternative ways asap, as we are facing problems in distributing salaries and meeting every day expenses
No withdrwal tilldate. I’m really worried. People are talking about xoom.com. Any idea?
Xoom is not working anymore.
yes already wrote about the same here – https://www.amitbhawani.com/blog/paypal-to-xoom-funds-withdrawal-not-allowed/
Hello
I too faced and talked a lot of time to pyapal chaps.
well this is the issue which never gonna resolve as RBI has Banned this process due to it’s non Official Funds,
And the main thing is there is no other alternative we can withdraw.
If we go via cheque that 100000% risky ,
1st there is no tracing number for the same
2nd will come by local post
3rd there is no time frame define
4th there is no sure that cheque has been send or not
i faced the same
5th there is no way to stop or cancel the cheque before 45 days .
In Short you have all headache and nothing in ur hands
I think some Indian bank should be able make some package that can be a good beat to paypal.
as i think almost 80 % paypal has lost its business from india .
hello
Now paypal withdraw problem solved in 2 or 3 days.todays i got one mail by paypal
PayPal
Dear
We have been diligently working with the RBI and our business
partners to resume Indian bank withdrawals for the thousands
of Indian businesses who depend on PayPal to sell their goods
or services in the global marketplace.
Today, we are happy to announce that the RBI has allowed us
to continue local bank withdrawals for settlements for exports
of goods and services. We are currently making changes to
comply with Indian regulations for settlements for exports of
goods and services, and we anticipate that, as of Wednesday,
March 3rd, customers will be able to use our
bank withdrawal service.
As part of the changes, you will be required to fill out a
new field entitled ‘Export Code’ when you request a withdrawal.
This information is required under the current laws of India in
order to identify the nature of cross-border merchant transactions.
On Monday, March 1st, we will be back in touch with specific
instructions on how you can move your money into your bank account.
Moving forward, the RBI has told us that PayPal needs specific
approvals to allow personal 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.
You can check the PayPal blog for additional updates.
http://www.thepaypalblog.com
We thank you for your business and for your patience during
the past few weeks.
Sincerely,
PayPal
YET AGAIN PAYPAL IS STOPPING ELECTRONIC FUNDS TRANSFER BEWARE GUYS……… WITHDRAW YOUR FUNDS NOW!!!!!
Orig article at PayPal offcourse you gotta take the pain in the rear to find it your self:
https://www.thepaypalblog.com/2010/07/update-on-paypal-accounts-for-india-users/
————————
Hello Zoe,
Good morning.
I wanted to make sure you aware of a notification that was sent yesterday to customer’s in India. I have included the notification below.
In accordance with regulatory instructions, we would like to notify you about a change in our withdrawal functionality in India starting on August 1, 2010. At present you can request for either an electronic or cheque withdrawal of funds from your PayPal account if you are an India user.
From July 29, 2010 onwards, you will only be able to request for a cheque withdrawal of funds from your PayPal account.
While we are working hard to restore the electronic withdrawal service, in the meantime, we are bringing this matter to your attention so that you can plan your future withdrawal activities accordingly.
To request for a cheque withdrawal:
1. Log into your PayPal account, click on ‘Withdraw’.
2. Click on the ‘Request a cheque from PayPal’ link.
3. Enter the withdrawal amount and select your mailing address, then click ‘Continue’.
4. Click ‘Submit’ to confirm your request.
In order to help you with this change and until further notice, we will refund the $5 USD cheque withdrawal fee to you for cheque withdrawals made on July 29, 2010 onwards.
For any questions, please log into your PayPal account and click ‘Contact Us’ at the bottom of the page.
We apologize for any inconvenience caused from this change in our withdrawal functionality. We will provide ongoing updates to you here. We thank you for your attention and patience as we work tirelessly to resolve this situation as quickly as possible.
Please let me know if you have any questions regarding this change.
Sincerely,
Carolyn Anderson / Merchant Account Manager
direct 866-923-3778 / cell 402.960.9871
fax 303.395.2821
office hours 7:30 AM – 4:00 PM CST Monday – Friday