What i thought was a permanent settlement of the issue between the Paypal and RBI, turned out to be an illusion. Today i received an email from the Paypal Asia team saying that there is a change in the withdrawal options for Indian Users.
Following is the content of the email:-
Dear Kunal Patil,
In accordance with regulatory instructions, we would like to notify you about a change in our withdrawal functionality in India starting on August 1, 2010. At present you can request for either an electronic or cheque withdrawal of funds from your PayPal account if you are an India user.
From July 29, 2010 onwards, you will only be able to request for a cheque withdrawal of funds from your PayPal account.
While we are working hard to restore the electronic withdrawal service, in the meantime, we are bringing this matter to your attention so that you can plan your future withdrawal activities accordingly.
To request for a cheque withdrawal:
1. Log into your PayPal account, click on ‘Withdraw’.
2. Click on the ‘Request a cheque from PayPal’ link.
3. Enter the withdrawal amount and select your mailing address, then click ‘Continue’.
4. Click ‘Submit’ to confirm your request.
In order to help you with this change and until further notice, we will refund the $5 USD cheque withdrawal fee to you for cheque withdrawals made on July 29, 2010 onwards.
For any questions, please log into your PayPal account and click ‘Contact Us’ at the bottom of the page.
We apologize for any inconvenience caused from this change in our withdrawal functionality. We will provide ongoing updates to you here. We thank you for your attention and patience as we work tirelessly to resolve this situation as quickly as possible.
The PayPal Asia Team
So the option of electronic transfer to the Indian banks will be cease, effective August 1, 2010
But one noteworthy point is, Paypal won’t be charging 5$ for the cheque/checks, which is the fee it normally charges if you issue any cheques/checks after 29th July.
The only major downside is:-
It takes a hell lot of time for the cheques/checks to reach you.
So over all its a bad news.
Hope this matter gets resolved soon.
The electronic withdrawal option has been restored.I doubt whether the paypal team has permanently resolved the issue with RBI,but as of now,you can continue withdrawing money electronically.