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| RBI gets Paypal to be stricter with Indian payments |
Everyone has heard of the World's most popular payment gateway and e-wallet PayPal. For those of you who haven't, PayPal is an e-wallet that can be used to pay money for any transactions and is an accepted means of payment for almost all e-commerce, gaming and other websites. It is also accepted as a means of payment by traders trading at an International level and professionals providing their services to International customers.
PayPal India has again introduced a new set of regulations for Indian users, w.e.f. 1st March, 2011. This in addition to the earlier regulations that it had made; makes e-trading difficult for Indians but at the same time ensures that money is not laundered and is not untaxed.
The following are the salient features of PayPal India:
PayPal India has again introduced a new set of regulations for Indian users, w.e.f. 1st March, 2011. This in addition to the earlier regulations that it had made; makes e-trading difficult for Indians but at the same time ensures that money is not laundered and is not untaxed.
The following are the salient features of PayPal India:
- RBI has been authorised to make necessary regulations regarding Online Payment under the THE PAYMENT AND SETTLEMENT SYSTEMS ACT 2007. The RBI does thus make necessary rules as and when necessary.
- As far as Pay Pal is concerned there are strict regulations laid down by Pay Pal India, including making it compulsory to give PAN card details, verification procedures, no withdrawal beyond a certain amount etc.
- Any amount deposited in a customers' PayPal account should be withdrawn within 7 days from the date of receipt of confirmation by buyers. Amount deposited in PayPal account cannot be used to buy goods and services and must necessarily be withdrawn.
- Export related payments cannot exceed U.S. $500 and any large receipts/payments from your PayPal account would be reported to the tax authorities (through your PAN card details which you have to provide on registration).
- Payments from India to another Indian user are prohibited.
- The strict procedures make it difficult but not impossible to use these E- Wallets for illicit activities like hawala transactions, terror funding and other criminal activities.
- At the same time it becomes cumbersome for traders and exporters using these modern-day payment methods to smoothly carry-out legitimate international trade. It also affects people providing services like free-lance writers, artists etc. However, there is a growing apprehension that increasing restrictions on e-wallets will hamper India's International trade, as traders nowadays prefer to use easy and convenient methods on the internet to settle accounts; and International traders will not appreciate unnecessary delays, formalities and restrictions.
hello friends,
ReplyDeletePayment gateway wars in India. In last few months there are so many payment gateway providers are start providing payment services to Indian merchants. Now! Indian users have so many options to accept online payments from their customers. Each payment gateway provider differs in their interface, fees and payment methods. Some accepts credit cards, debit cards, net banking and mobile payments and some are only yet on visa and master.
Major players are ccavenue, hdfc, citybank and ebs. A comparison must be needed for all payment gateways. Paymentgateway4u is my blog for comparing payment gateways. You can see current new payment gateway providers and their fees comparison in my blog. Foreign payment gateways like PayPal, money bookers are limited to Indian merchants. So it is good for Indians to stop accepting payment from foreign payment gateways. If we accept payments from foreign payment gateways there is currency conversion fees and markup fees that also paid by the customers.
Payment gateway setup fees and transaction cost is going to be less because new players are comes in market. So Payment gateway war makes Indian internet more ecommerce booster for economy. I hope you like it. Paymentgateway4u
http://www.paymentgateway4u.in