This post is in continuation with the PayPal Situation in India which caused tremendous troubles for Indians accepting PayPal as payment solutions this whole February. Starting 26 January PayPal stopped withdrawals to Indian banks giving the reason that Indian Regulatory Bank i.e. RBI has asked them to do so and they do not have sufficient permissions to perform Bank transfers in India.
PayPal strictly adhered to the situation and stopped the transactions and since then people were left stranded no where as to how they will get PayPal virtual money to their bank accounts here in India.
Then to rescue some Indians Xoom was present as they were also doing the same as PayPal , transfers to Local bank accounts in India but since 20th February they also stopped Intra-India transfers citing reasons of RBI. Some people tried various options to withdraw money which not only included usage of exchangers , withdrawal to credit cards and withdrawal by cheques as well.
The morning of 27th February resulted in some good information for Indians as Farhad Irani posted on ThePayPalblog.com about the resume of local Bank Withdrawals which will start from 3rd of March 2010, and the emails received by Indian users of PayPal was something like this
We have been diligently working with the RBI and our business partners to resume Indian bank withdrawals for the thousands of Indian businesses who depend on PayPal to sell their goods or services in the global marketplace.
Today, we are happy to announce that the RBI has allowed us to continue local bank withdrawals for settlements for exports of goods and services. 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, March 3rd, customers will be able to use our bank withdrawal service. 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.
On Monday, March 1st, we will be back in touch with specific instructions on how you can move your money into your bank account.
I am now eagerly waiting for 1st of March when Farhad Irani will post some more information about how to get the Export Code and how to withdraw the money from PayPal Account to our Bank Account. In the time span of 2 days there have been numerous threads on Digital Point forums Payment Processing Section and each member of Digital Point forums who is Indian is contributing there.