PayPal have resume bank withdrawal in India from 3rd March 2010. Although I may be late announcing this news but I thought I really need to write about this one as I have earlier written about the PayPal issue.
PayPal have solved the problem within 1 month as they stated earlier they are working hard to solve the problem. They knew the importance of PayPal to Indian customers and so they solved it quickly. But this time PayPal was forced to implement some new features as per instructed by the Reserve Bank of India (RBI).
The following statements are directly taken from the official PayPal blog – https://www.thepaypalblog.com/2010/03/weve-resumed-local-bank-withdrawals-in-india/ which mentioned one of the main changes which you will see when you try to withdraw money to your local bank as: -
When you select the ‘Withdraw Funds’ option on your PayPal account, we will ask you to fill out a new field entitled ‘Purpose Code’. This information is required under the laws of India in order to identify the nature of cross-border merchant transactions. Simply select the one most appropriate for your business. More details on purpose codes can be found here
PayPal is also updating Indian user’s PayPal account with many more features like asking PAN numbers, address verification, mobile number verification etc.Today when I login my account, they asked me to put my PAN number and I did which went successful.
Now it seems all the transaction which we make through PayPal will be under Government radar and we will have to pay Income Tax to the Indian Government. Since we have put the PAN number, its legal now and we have nowhere to run. These online business is kind of self – unemployment. If government has right to ask for Income tax of this then they will soon start asking until then it’s not known whether we have to pay or not. Will update as soon as I found some information about it.
PayPal is working perfectly now. I have made one small amount withdraw on my ICICI bank on 4th March and I received the payment on 8th March on my bank account successfully. That was really a quick service. I again did a small amount transaction yesterday on 11th March. Hoping to get them on 15th or 16th March.
My bad luck, I was frustrated waiting when the PayPal problem will get solved and I made a cheque request of $200 on 24th February and till date I didn’t receive the cheque. I wonder if I will get the cheque? I regretted that I didn’t wait till the PayPal problem get solved. If I have waited for 4-5 more days I would have known that PayPal will resume local bank transfer from 3rd March. Anyway I am happy as PayPal is working fine now and we online business doers don’t have to worry again doing our work online. Best of Luck to my fellow readers in their online business.
