Indian users of the PayPal service will be aware of the law that was brought into effect from March 1st 2011 for them. The rule states that –
Any balance in and all future payments into your PayPal account will not be used for the purchase of any goods or services and should be transferred to your back account within a time span of 7 days from the date of receipt of confirmation by the buyer with respect to the goods and services.
Payments related to the goods and services regarding exports with respect to your PayPal account should not exceed $500 (USD) per transaction.
The law was enforced soon after the Reserve Bank of India came up with a new set of guidelines for the organizations that carryout transactions and money storage online as well as offline.
In simple terms this means that no Indian user would be able to purchase anything using the money stored in their PayPal account and must withdraw their money within a period of 7 days, if they fail to do so, the money would get refunded to the sender by default.
Consequences of the Law.
In case you are on a two week vacation and fail to access your PayPal account due to one reason or the other, then the money in your account will be refunded to the sender.
If your credit card is not linked to your PayPal account then you cannot purchase anything online.
Auto withdraw funds from PayPal to your bank account.
In answer to the law, PayPal has come up with a fund withdrawal system that would help you to withdraw your funds from PayPal and transfer them to your bank account by simple checking into your PayPal account and going to your profile and then clicking on the Add/Edit bank account option.
In case you have just one bank linked to the PayPal account then it will be made a default option for auto fund withdrawal. In case you have multiple back accounts linked they can choose as to which account the funds should be withdrawn to.
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