PayPal India Notification With effect from 1 March 2011
There are two (2) new restrictions noticed, imposed, and regulated by RBI (Reserve Bank of India) for PayPal to comply on PayPal's India users. The notice announced by Dickson Seow from the PayPal Corporate Communications team published at PayPal Official Blog site - Advanced Notice for Changes to PayPal User Agreement for India.
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.
MY PERSONAL THOUGHTS
From the Item 1, the words used for "Any balance" stringed with "and" binded to "all future payments"; are all restricted with "may not be used" specifically to buy goods OR services. Mandatory/Compulsory/Obligatory, the balance must be put back into India soil. Meaning that, the money must circling and recycling; changing its ownership hand-to-hand in India and not in the United States of America.
What is the future opportunity for India? PayPal India must exist on India soil in future like what had been done by Google with its Google India and India AdSense. This is the thing, having said, sharing the common interests. Otherwise, must use any bank operating its banking business in India.
For sure, Item 2, this restriction will effect those merchants transacting their export products using PayPal account because the maximum amount of US$500 per transaction is too small. They have to make use any applicable bank in India to make or receive payment. Not only the bank in India will get the benefits, but the India government want to scrutinize the related business operation and activity for tax assessment and revenue.
India AdSense will be getting much benefits from these new restrictions? How? You think about it? By nature, any high pressure will look for low pressure area to continue living and functioning!
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