PayPal getting deathknell in INDIA!

[syncvb]

Reserve Bank of India has imposed new guidelines for PayPal and by these all INDIANs are screwed up.

Highlights:

01.User cannot keep a paypal Balance.
02.User cannot accept more than $500 per transaction.

Official post at PayPal blog here and TechCrunch Covering here.

Don't know what to use to get payments for domains.Say that you sell a domain for $4 :O you must get that $4 into your bank account in seven days and that too by entering an obscure code or request a check for $4.

 

[the_poet]

That's some terrible news!

 

[glaxxon]

That's very nice of you...

 

[mntor]

Unfair comment, wrong timing.

 

[manishy]

This is the full description:


With effect from 1 March 2011, you are required to comply with the requirements set out in the notification of the Reserve Bank of India governing the processing and settlement of export-related receipts facilitated by online payment gateways ("RBI Guidelines").

In order to comply with the RBI Guidelines, our user agreement in India will be amended for the following services as follows:
1. Any balance in and all future payments into your PayPal account may not be used to buy goods or services and must be transferred to your bank account in India within 7 days from the receipt of confirmation from the buyer in respect of the goods or services; and
2. Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction.

 

[glaxxon]

The main problem for indian domainers and the $500 limit:
Say you sell a domain for >$500, there are two possible cases:
1. You sell it to some person you know: You can ask them to break payments.
2. You sell via sedo or some auction house: Now how do you expect them to split payment amounts?

Also will domaining be counted as export service for the limit to be applicable?

 

[Michael R.]

2. You sell via sedo or some auction house: Now how do you expect them to split payment amounts?

But the $500 limitation is also for Sedo? Or only for Paypal?

 

[vc]

Is this really a pp issue or a "RBI" issue?

(Meaning can one find alternatives or will RBI force all players to oblige to these "rules"?)

 

[chandan]

its just paypal drama those idiots not obeying rbi policy but putting all blames on rbi.

 

[gcttirth]

We can still use alternatives of PayPal like AlertPay, LibertyReserve, MoneyBookers etc.

Thats very bad move by PayPal, I think they will get killed soon due to this.