Can Indian Customers fund their paypal account through their Indian Bank accounts. If so how?
Pre-funding the PayPal account for the purpose of either sending money to another PayPal user or purchasing services or goods online is not an available feature for Indian PayPal accounts, as it would contradict our efforts to comply with the latest RBI guidelines, which disallows this. Therefore, when you initiate payment, you will only need a credit card to fund it.
And since any balance and all future payments into an Indian PayPal account may not be used for online purchases, these funds must then be transferred to the account holder's Indian bank account within 7 days from the receipt of confirmation from the buyer in respect of the goods or services.
PayPal is committed to working closely with the regulators and ensuring that PayPal complies with all applicable India regulations. Thus, to ensure compliance with the latest requirements set out in the notification of the Reserve Bank of India (“RBI Guidelines”) governing the processing and settlement of export-related receipts facilitated by online payment gateways:
1. Paypal no longer provide domestic payment service in India. This means that you are unable to send or receive payments from an Indian resident customer. However, you can still send and receive international payments: you can continue to use PayPal to shop online with over 8 million merchants internationally.
2. PayPal customers in India will not be able to send or receive payments for any export-related goods or services for an amount exceeding $3,000 USD per transaction. This is a per transaction limit applied to all online payment gateways processing transactions for Indian sellers and can neither be removed nor increased.
Once the website changes have taken effect, Indian sellers will no longer be able to receive greater than $3,000 or equivalent for a single transaction. Should the sender attempt payment exceeding $3,000 USD, they will encounter an error message on the webpage and the payment will not go through.
3. PayPal can no longer allow India based customers from reusing their balance for making payments. Thus, you will only be able to make a payment from a linked credit card. If you do not have a credit card linked to your PayPal account, you will be prompted to link one. And since any balance and all future payments into your PayPal account may not be used to buy goods or services online, these funds must then 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.
Hope this information will help my fellow Paypal custumers in India.
