For most users of Paypal, there has been no major update this week on transfers from Paypal to Indian bank accounts.
Direct transfer of funds from Paypal to Indian bank accounts is still not possible. Paypal seems to be contacting business account holders with large balances of over $10 K and offering them the facility to withdraw the balance by wire transfer to their bank accounts. Many eBay sellers need the funds for buying new stocks. However, many banks charge a fee for incoming wire transfer , but the exchange rates are usually higher for SWIFT transfers than the rate Paypal offers. The eBay sellers seem to have been contacted by Paypal directly or through their Paypal account manager.
Currently Indian Paypal account holders can withdraw using a credit card or check. For both there is a $5 withdrawal fee, but the $5 fee for checks will be reimbursed according to the official Paypal blog. Earlier there was no limit on withdrawals for certain business accounts, but now there is $2500 monthly limit for check withdrawal. The checks are sent in Indian Rupees, drawn on Citibank.
Many Indian freelancers with a verified Premier and Personal account could withdraw money from their Paypal balance using Xoom , but now they are facing problems since intra-India transfers using Xoom seem to be getting blocked since 21 February. RBI seems to have imposed restrictions on Xoom and the issue may be resolved in 2-3 months.
The issue seems likely to get resolved by March 10, 2010, when there is going to be a new Paypal policy update and all payments to Indian personal accounts will be charged a fee similar to that charged for premier and business accounts.
Dude i saw this post in dp and i came here really very helpful info and thanks for the prompt post about xoom tooo
Xoom has also blocked Pay Pal money transfer for Indians
Pay Pal Indian user can not withdraw his money to Bank Account using Xoom…
Hello friend…..
how come u say the problem will be resolved in march 10 2010…….
“The issue seems likely to get resolved by March 10, 2010″ Please explain.Even PayPal have not told this.How do you know the time frame for resolution? Regards
There are going to be some policy changes effective March 10, so business account holders payments should hopefully be resolved by then.
From
https://cms.paypal.com/us/cgi-bin/?&cmd=_render-content&content_ID=ua/upcoming_policies_full&locale.x=en_US
Amendment to the PayPal User Agreement, Acceptable Use Policy, and Student Account Agreement
Effective Date: Mar 10, 2010
* Amendment to the PayPal User Agreement
Section 8 (Fees) of the User Agreement is amended to state that you may not send a Personal Payment to a recipient in India. Any payment sent to India must be for a Purchase Payment and will be charged the Purchase Payment fees.
Hello admin ,
Thanks for your detailed reply.Please provide us updates on PayPal developments.
I am holding a Personal account in PayPal.I am doing data entry relates service for my customers online (in a small way) and they are providing me fee for my services.Can I get this money to my bank account in India through PayPal after this policy changes ?
Regards
You can get a Moneybookers account, they allow payments to India through SWIFT transfer.