Paypal India Money Transfer Problem Resolved
If you are an Indian paypal user, you must have faced lot of problems in last 7 days due to Payment Reversals and money not getting deposited into your bank accounts even after a week.
But it seems now the problem is almost fully resolved as the reversals of payment have stopped and people who had withdrawn money to their bank accounts, they money has been credited back to their paypal accounts, so they can withdraw it again, though it seems people have lost some money due to currency exchange.
If you are a freelancer, now you can get paid through both goods and services and the transaction won’t get reversed even though paypal was suggesting to use only goods option, you can also send invoices too as they are also working properly.
It is a real shame though paypal handled the whole scene in such unprofessional way where they just stole the money from your account and put it back in someone else account, I know paypal is not a bank and is just a service, but still, such kind of practices can not be allowed, not to mention, there wasn’t any official statement at all from them which caused widespread anger and panic.
There are good chances that everything will get restored in next 1-2 days and there may be some official statement from them, right now, the only feature that has been removed is “personal payment” option for Indians.
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16 Responses to “Paypal India Money Transfer Problem Resolved”
1raviseo on Feb 9, 2010 :
Hey it sounds so nice but it cost lots
in reversal anyways if u r saying it is resolve then i can make a try again hence now my paypal balance is credited as u mention in your post thanks 
2jsmi on Feb 12, 2010 :
Please don’t mislead people who already annoyed. Paypal problem is not yet resolved. Problems regarding the personal payments to and from India and withdrawal to local bank accounts are still remaining. Only thing they did is that they’ve refunded the reversed amounts to the related accounts.
3Abhimanyu on Feb 15, 2010 :
I don’t the personal payment option is going to come back, as per paypal it take months to get resovled, anyway you can also withdraw funds from paypal through check or through your credit card, please check https://www.thepaypalblog.com/2010/02/an-open-letter-from-farhad-irani-on-the-situation-in-india/ to know more about it.
4Anand Patel on Feb 23, 2010 :
Hi guys, Sorry to say but issue is not resolved yet, as i tried to withdraw money and they again deposited back to my paypal account. RBI is not yet allowing such transaction , m wallet and e wallet where they are losing control over the transactions but i never understand one thing, we are withdrawing money to bank accounts of indian banks, ( govt or self finance ) than after how RBI claims that they are losing control over such transaction ? So don’t try to withdraw yet as its not resolved fully yet.
5Abhimanyu on Feb 24, 2010 :
Anand, I think the direct bank transfer can take couple of months to get resolved, you can withdraw $2500 per month at max from check though.
6Vijayshankar Mishra on Feb 25, 2010 :
The issue is not resolved yet. So pls. dont deposit balance to you bank a/c otherwise you lost some amount due to conversion rate.
7Anirudh K. Mahant on Feb 27, 2010 :
Recent issues with PayPal withdrawals to Indian Banks & more over payments just randomly being reversed back to the senders will have a deep impact on PayPal’s reputation. It raises so many questions like (THIS MIGHT CONTAIN SPOILERS):
A) Should we trust PayPal in future?
ANS: ABSOLUTELY NO
B) Are they really concerned about our Money?
ANS: ABSOLUTELY NO, After a long period of two weeks we receive an apology letter stating that “We are sorry we goofed up opps!”? and stuff like “Your money just got sacked since this is nothing serious to us we are just doing a drill of playing a game with your hard earned money”?
C) Is RBI responsible for this?
ANS: UNQUESTIONABLY MAYBE, So, Question is why this is happening in India and nowhere else? Question is why we are being kept behind curtains and dark? Question is why Moneybookers and other Payment systems are working but PayPal is not? you just want to exclude the RBI out of this since they are least concerned with us. Everyone failed here! RBI off course you cant expect them to give you a comforting truth so a comforting lie should suffice you! And PayPal Ow man no shit a multinational company failing to inform and notify of an issue of this magnitude. That was an AWESOME combination of pure frustrating, destroying trust & spreading chaos.
D) So what does PayPal tell us now?
ANS: “We are sorry, but your valuable to us so please give us another opportunity to goof up and play some more engaging games with your money” and “We just love to make more profits by giving you a pathetic exchange rate”
D) What now?
ANS: DTA (Don’t Trust Anyone) Get your sleeves up against them and find your own ways to get paid over any other medium that serves better, communicates better and keep them in plenty. If one fails other should work out.
Ive let all my clients know about this issue and advised them (in advance unlike PayPal) to switch over to some other Payment system which is reliable, responsible and does the main thing “ACTION” at PAR. The truth will probably be dead and berried RIP about what happened because the shame and disgust they bring upon themselves is apocalyptic now.
8Hebbar on Apr 20, 2010 :
as of 20th april 2010, the problem is not resolved as far as I am concerned. we have a business account and trasnferred the amount, which got reversed and cost us 250 rupees. Waste of time and energy. and I dont know by what means, the author here carelessly says that the problem is resolved. stop misleading people.
9Abhimanyu on Apr 20, 2010 :
Hi Hebbar, really sorry to hear that the money was sent back to your paypal account but what the reason for this ? it seems paypal has again changed their policies for Indians
10Hebbar on Apr 20, 2010 :
On 27th of February, this is what we received as a reply from paypal.
But till today they are not allowing even business membership owners to transfer our amounts.
Here is the paypal email that we recieved -
Dear Hebbar,
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
11Abhimanyu on Apr 21, 2010 :
@Hebbar - right, but this mail is about a different problem which happened on first week of march, your current problem seems to be different, right ? you tried to talk to paypal ?
12Hebbar on Apr 21, 2010 :
We had mentioned our code, which happens to be export of goods, while we tried to do the money transfer. We have already registered our PAN card number in the paypal website. but still this has happened. I have not contacted paypal yet. apart from emailing, is there any Indian paypal office, where we can directly do a phone call and get clarification?
Thanks for your kind help.
regards
hebbar.
13Abhimanyu on Apr 26, 2010 :
Hi, Paypal has an Indian office but it is only for backend support and coding, so you have to call to US office to get things sorted, keep me updated on your progress
Regards
14Jurek on Jun 5, 2010 :
Hola a todos, he creado este grupo para hacer un Censo con la cantidad mayor posible de personas que tuvieron, tienen y creen que tendran problemas con Paypal. He sido una victima de problemas con ellos durante mas de 2 años y ya me canse de tanta mentira, fraude, engaños, robo, en fin podria llenar un libro de acciones negativas de Paypal. Quisiera buscar la manera de crear una revolucion ante este problema que esta afectando a miles, quizas millones en Paypal ya que supuestamente los usuarios de todo el mundo superan los 200 000 000 increiblemente, quisiera reunir la mayor cantidad de personas posibles y entre todos buscar la manera de solucionar lo que hasta ahora ha sido imposible.
Hi all, I created this group to make a census with the greatest possible number of people who had, have and believe they will have problems with Paypal. I have been a victim of problems with them for over two years and already I am tired of so many lies, fraud, deceit, theft, finally I could fill a book of negative actions of Paypal. I would like to find a way to create a revolution against this problem that is affecting thousands, perhaps millions in Paypal since supposedly users worldwide exceeded 200 million incredibly, I would like to gather as much people as possible and together seek how to solve what has so far been impossible. I’m sorry if I have some mistakes in my writing but I don’t know even the English language to perfection
Favorite Quotations
Paypal tiene que pagar por todo lo que ha hecho, por ultimo me propuso que pagara un saldo pendiente de un robo que me hicieron online hace mas de un año el cual me afecto el credito y el me devolveria la cuenta, bueno resulto que pague el dinero que me habian robado y luego de hacerlo me dijeron que no me darian la cuenta de vuelta y que mi cuenta se cerrara. Todas aquellas personas que quieran unirse son bienvenidas a mi grupo y por favor, dejen todos sus comentarios aqui, quizas valgan de algo algun dia.
Paypal has to pay for everything he has done, Paypal finally asked me to pay an outstanding balance of a scam that someone online made me more than a year ago which affected me the credit and they would restore access to my account. Well I paid the money I had cheated and after wards tol…d me they would not give me the account back and that my account would be closed. All those people who want to join my group are welcome and please leave your comments here, maybe some day help us.
15James on Feb 10, 2011 :
I have been helping people in India solve the Paypal problem through setting up a Hong Kong company which has a Hong Kong bank account tied to a Hong Kong Paypal account which can be operated remotely by the user in India.
16girish on Aug 4, 2011 :
my cheaqe is axis bank my accout hdfc bank how maximum time cheaqe clear