A lot of Indian PayPal users have reported that their recent payments have been reversed by PayPal. In what seems to be an might turn out to be a restriction imposed by RBI on PayPal’s payment system (see update below). However when contacted about the entire episode all PayPal told me was that they were experiencing technical issues with Indian PayPal payments and they had reversed all personal payments to their respective senders.
PayPal is used by a majority of Indian freelancers and bloggers who make money from their clients and advertising firms to receive and withdraw payments from anywhere into their bank accounts. I had recently withdrawn money from my PayPal account. So far everything seems to be normal. I believe the current issue effects only personal payments residing in PayPal accounts for Indian users.
In case your payments were related to a business transaction or an eBay purchase then I’d suggest you contact PayPal right now. Also the current outage seems to be for only personal payments made to PayPal India users. PayPal suggests you ask senders to send your payments again.
Update: It has now been confirmed that PayPal is indeed blocking personal payments for Indian PayPal users. There seems to be an issue between PayPal India and it’s business partners. However commercial payments are still working for all PayPal India users. In case any of your commercial payment has been reversed or blocked then please contact PayPal and also ask the sender to send the payment all over again including the shipping address this time.
Update: PayPal has currently withdrawn all person to person payments in India along with transfers to Indian bank accounts and it seems like it might stay that way for a while. Although PayPal India is yet to come out with an official explanation speculations are sky high that RBI regulations might be a problem here (as I had earlier suspected!). There’s a post on PayPal’s blog here which says nothing we don’t know as yet.
Update: Finally! PayPal India has responded to the huge amount of queries from it’s Indian users. In their recent post on their blog PayPal India has confirmed, what I had previously suspected, that regulatory issues are what PayPal India is facing. As per PayPal they are trying hard to settle the issue with regulatory authorities (RBI I believe) and banking partners to get their services back on track. Also it looks like personal payments will remain unavailable for Indian PayPal users in the coming few months. PayPal will revert back the withdrawn amount from bank accounts back into users PayPal accounts in the coming few days (damn! It affects me too) but PayPal assures withdrawal feel will be reimbursed. Now comes the confusing part. PayPal says they will allow users to withdraw money into local bank accounts in a few days. So why revert it back in the first place? With PayPal’s reputation and the recent payments fiasco, PayPal is not to be trusted. Keep a watch on your payments guys. I’ll keep you all posted on the latest.
Article by Harry
Harry has written 464 awesome articles on HarryJerry.com.
About: ...an engineering student, a freelancer, a professional blogger, a loving lover, too shy, an Internet freak....and everything I shouldn't be.
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Tags: funds, India, money transfer, online gateway, payments, paypal
