PayPal an online payments service (internet bank). PayPal is an e-commerce business allowing payments and money transfers to be made through the Internet.
On February 1st 2010, Paypal stopped and reversed all Personal transactions in or out of India
Paypal without warning or consent they had returned funds to vendors which they had already received and withdrawn. Personal payments are blocked going in or coming out of accounts from Indian customers, causing a confusion which also had millions of online complaints.
Today Paypal has told that they are Resuming Bank Withdrawals Service by March
3. But personal payments into India will remain suspended, as the RBI has told the online payment company that it requires specific approvals to allow personal inward remittances to India.
PayPal needs authorization to operate a cross-border money transfer service, under the country’s Payment and Settlement Systems Act, 2007.
On March 1 or By March 3 2010 they will resume these services with specific instructions for customers on how they can transfer their money into their bank accounts. Finally there is some good news for Indian Merchant and exporters.