paypal

Mumbai: Breaking News! In a big relief to the millions of IT Firms, Freelancers, Writers, SEOs and IT Developers, world's largest online money transfer service provider, PayPal has announced the resumption of local bank withdrawals to India.

The paypal announcement says that the Reserve Bank of India (RBI) has allowed them to continue local bank withdrawals for settlements for exports of goods and services. All PayPal customers should be able to use the bank withdrawal service from March 3, 2010 onwards.

As part of the changes, the customers will be required to fill out a new field entitled 'Export Code' when they 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, PayPal will be back in touch with its customers with specific instructions on how they can move their money into their bank accounts.

RBI has told PayPal that the online money transfer company needs specific approvals to allow personal remittances to India, which they currently do not have.

"Until PayPal gets these approvals, personal payments into India will remain suspended. However, if you are an exporter, you will continue to be able to use the PayPal service for payments of goods and services", said PayPal announcement.

All PayPal customers in India will now get purpose codes for export transactions and FIRCs (Foreign Inward Remittance Certificates). So, the payment and money transfers will become legit and there will be less scope for tax evasion and money laundering.

PayPal's India Head Farhad Irani has apologized for all inconvenience experienced by the customers in the past few weeks.

"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. PayPal’s highest priority is to always ensure we comply with all applicable regulations everywhere we do business around the world", he said.