New Delhi, India (BBN)- PayPal, online payment service provider, is going to resume its withdrawal service in India from Mar.3 this year, a company official announced on Saturday.
The Reserve Bank of India (RBI), the country’s central bank, has allowed the PayPal to resume bank withdrawals for settlements for exports of goods and services complying with the existing rules and regulations.
“We are currently making changes to comply with Indian regulations for settlements for exports of goods and services, and we anticipate that as of Wednesday, Mar. 3, we will be able to resume the bank withdrawal service,” PayPal’s India Head Farhad Irani said in a blog post.
As part of the changes, “you will be required to fill out a new field entitled ‘export code’ when you request a withdrawal. This information is required under the current laws of India in order to identify the nature of cross-border merchant transactions,” Irani wrote.
The RBI has asked the PayPal to need specific approvals for allowing personal inward remittances to India, which yet to be received. “Until we get these approvals, personal payments into India will remain suspended,” Irani added.
However, if you are an exporter, you will continue to be able to use the PayPal service for payments of goods and services, he confirmed.
Nearly four weeks back, PayPal suddenly started blocking personal payments going in or coming out of accounts from Indian customers.
A company announcement said earlier that “personal payments to and from India and transfers to local banks in India have been suspended” as the company works with business partners and stakeholders “to address questions they have about the service”.
“We know the past few weeks have been difficult and I would like to assure you that we have been working tirelessly to resolve the situation and restore our service,” Irani noted.
India’s retail e-payment market is growing fast with the market forecast to reach between US$150 billion and US$180 billion by this year, according to reports.
BBN/SS/SI/AD-28February10-1:52 am (BST)