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PayPal halts payments to India
Monday, 08 February 2010, 18:07 Hrs |
9 Comments
San Francisco: Online payments' service Paypal has halted personal payments to India following new government regulations that were designed to crack down on money laundering.
Paypal Monday did not cite a specific reason for the suspension apart from concerns raised by PayPal's "business partners and stakeholders". The company noted that commercial payments to merchants in India would continue as normal.
The move is expected to have a serious impact on the thousands of Indian freelancers who are paid via Paypal for web design, writing and software development, PC World reported.
The move is reportedly related to the Indian government's crackdown in November 2009 on international banking transactions, when it instituted new reporting and verification requirements on all banks and financial institutions to prevent international money laundering.
Source: IANS
Paypal Monday did not cite a specific reason for the suspension apart from concerns raised by PayPal's "business partners and stakeholders". The company noted that commercial payments to merchants in India would continue as normal.
The move is expected to have a serious impact on the thousands of Indian freelancers who are paid via Paypal for web design, writing and software development, PC World reported.
The move is reportedly related to the Indian government's crackdown in November 2009 on international banking transactions, when it instituted new reporting and verification requirements on all banks and financial institutions to prevent international money laundering.
Source: IANS
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Reader's comments(9)
1:
Hey all freelancers
Why cannot we start our own such service competiting services like Paypal. I am a web developer and ready to contribute to such projects. Interested ones may contact for collaboration at abhishek5604.06@bitmesra.ac.in
Why cannot we start our own such service competiting services like Paypal. I am a web developer and ready to contribute to such projects. Interested ones may contact for collaboration at abhishek5604.06@bitmesra.ac.in
Posted by:Abhishek Bharadwaj
- 09 Feb, 2010
2:
I as a freelancer is an affected person in this context. The government regulation as I understand is against international money laundering, whereas the Paypal move affects payments received in small amounts for valid services rendered to foreign clients by Indian freelancers.I am a tax payer and has not hidden any such income from tax authorities as I believe in telling the truth rather than spend sleepless tensions. There is no indication when the problemm will be sorted out. There is no other instant money transfer option as this government regulation will be applicable to any such services. I do not know whether iMO facility of Indian postal services can substitute.
Posted by:Subramania Iyer
- 09 Feb, 2010
3:
Please note the following issues of PayPal:
1. Although it says, only Personal transactions to be blocked, PayPal has gone ahead and blocked all transactions (including commercial transactions) to India.
2. While you are trying to remit money to India, it allows to convert USD to INR and then cancels the remittance, converts INR back to USD, thereby the customer losing twice on the currency conversion. PayPal is not refunding this loss. Infact, at the first instance, it should not have allowed the USD to INR conversion.
3. No Prior intimation from PayPal. It was like a bolt from the blue.
4. PayPal is giving no confirmation as to when the issue will be resolved.
5. Clients who are sending money to PayPal, PayPal is accepting the funds. Then it deducts its own share of fees and returns the balance amount back to the client.
This is totally un-professional and should be dealt with very strictly.
1. Although it says, only Personal transactions to be blocked, PayPal has gone ahead and blocked all transactions (including commercial transactions) to India.
2. While you are trying to remit money to India, it allows to convert USD to INR and then cancels the remittance, converts INR back to USD, thereby the customer losing twice on the currency conversion. PayPal is not refunding this loss. Infact, at the first instance, it should not have allowed the USD to INR conversion.
3. No Prior intimation from PayPal. It was like a bolt from the blue.
4. PayPal is giving no confirmation as to when the issue will be resolved.
5. Clients who are sending money to PayPal, PayPal is accepting the funds. Then it deducts its own share of fees and returns the balance amount back to the client.
This is totally un-professional and should be dealt with very strictly.
Posted by:Raj Oberoi
- 09 Feb, 2010
4:
Guys,
It says Paypal has only stopped the service of Personal Payments.
It says that commercial payments to merchants in India would continue as normal.
I think we can write to pay pal and ask them if one is a Business Customer of Pay Pal then things can work as they were working....
I have already send a mail to pay pal regarding the issue, will update the post as they respond back..
Thanks,
Himansshu H Singh
It says Paypal has only stopped the service of Personal Payments.
It says that commercial payments to merchants in India would continue as normal.
I think we can write to pay pal and ask them if one is a Business Customer of Pay Pal then things can work as they were working....
I have already send a mail to pay pal regarding the issue, will update the post as they respond back..
Thanks,
Himansshu H Singh
Posted by:Himansshu H Singh
- 09 Feb, 2010
6:
We need to stop the dependancy for everything on other countries yaa... what is this.. Lets start our world.. we are concentrated in only servicing to others not in product manufacturing and selling across the globe.
e.g. paypal, verisign MS.. Apple.. google.. intel.. sony.. etc etc...
there are very few Indian companies who has a brand name across the globe .. why
jaago indians jaago... otherwise wo obama India ko Duba dega....
e.g. paypal, verisign MS.. Apple.. google.. intel.. sony.. etc etc...
there are very few Indian companies who has a brand name across the globe .. why
jaago indians jaago... otherwise wo obama India ko Duba dega....
prasad kumbhojkar Replied to: Raj
- 08 Feb, 2010
7:
This would impact a lot of payments that are made through this site, because it is now widely used across the country..
Posted by:Amar
- 08 Feb, 2010
8:
Yes True,, BUT THE GOOD THING IS THERE ARE OTHER SITE LIKE MONEYBOOKERS WHICH CAN STILL BE OF HELP...
hEMANT Replied to: Amar
- 08 Feb, 2010
9:
This isn't fair on Indians. I make many transactions through paypal and now this is going to have a serious impact on me and many freelancers. very bad
Raghu Kumar CK Replied to: hEMANT
- 08 Feb, 2010
Beautiful and dress selection, please go to Dresses
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