Starting from March 1, 2011, the Paypal user agreement for India will see some changes that won’t ring well with many Indian Paypal users who are SMB owners or freelancers. Paypal recently issued an advisory on their web site for the Asia Pacific region regarding these future changes and have also provided answers to some frequently asked questions on the subject. So what exactly are the changes going to be? What are the reasons behind them, if any? Are the changes good or bad? If you wish to learn the answers to these questions and more, continue reading this article.
According to recently released customer advisory, Paypal’s commitment to provide a higher level of customer service is the reason why they are informing their users of the upcoming changes to the Paypal user agreement for India, 30 days in advance. As mentioned earlier these changes will only start to take effect on March 1, 2011 which gives users plenty of time to prepare for any adjustments that are bound to happen. What is all this rule-changing about? Well, apparently, the Reserve Bank of India which governs the processing and settlement of export-related receipts facilitated by online payment gateways have issued new guidelines which have to be followed by entities like Paypal if they want to stay in business. These RBI guidelines are not specified, but they are cited as the reason for the minor changes in the Paypal user agreement for India.
The following two items are going to be added to the user agreement in India in order to comply with the RBI guidelines:
1. Any balance in and all future payments into your PayPal account may not be used to buy goods or services and must be transferred to your bank account in India within 7 days from the receipt of confirmation from the buyer in respect of the goods or services; and
2. Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction.
Although Paypal expresses regret over any inconvenience these changes might cause to their users, they are still going to go through with it. What do these changes mean? The first one simply means that Paypal users in India cannot keep their funds in their Paypal account for longer than 7 days. As for the second one, it means that Paypal users in India cannot receive more than $500 to their account per transaction. This is all being done in order to comply with RBI guidelines. Apart from these, there will be no other changes to the Paypal user agreement for India.
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