PayPal a 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 without prior notice.

Funds already transferred and transactions completed weeks prior were reversed leaving many vendor accounts over-drafted.

Paypal without warning or consent they had returned funds to vendors which they had already received and Withdrawn.

Anuj Nayar, a spokesman of paypal on a company’s blog written that the suspensions began Jan. 28. Customers can still make commercial payments to India but merchants cannot withdraw funds in Rupees to local Indian banks.

He also end with, PayPal will resolve this issue as soon as possible. PayPal has taken these measures in order to respond to some problems.