So it is confirmed that there are no more reversals of money from Indian paypal accounts but people can still not withdraw the money. This withdrawl problem can take couple of more days to resolved though there are lot of rumors floating that RBI may ban paypal

PayPal does not have authorization in India to provide cross-border money transfers, a spokeswoman for the country’s central bank said on Thursday.

PayPal needs authorization to operate a cross-border money transfer service, under the country’s Payment and Settlement Systems Act, Alpana Killawala, spokeswoman of the Reserve Bank of India (RBI), said Thursday.

Now I don’t think RBI is going to ban paypal in India as this will seriously hurt about hundreds of thousands of freelancers as well as various companies who get lot of money through paypal, and they won’t sit idle, also it is expected that paypal will also try to get some “loophole” method to keep it alive as India is too big of a market to lose.

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