According to a post at Dp states it
Dear varnika verma,
Thank you for your patience while we work to address the issue of processing withdrawals to Indian bank accounts.
We expect to have this issue resolved within the next few days. In the meantime, we’re going to restore the amount of your recent withdrawal into your PayPal balance so that you can know your money is safe in your account. You should see the balance restored within 24 hours. In addition, you will see a reimbursement of any withdrawal fees charged. We will ensure that you are not adversely affected by currency fluctuations during the last week.
In your transaction log, you will soon see that your PayPal withdrawal request has been reversed. We ask that you wait to submit another bank withdrawal request until we have addressed the processing issue. We will contact you again in a few days with an update and, if the issue is resolved, you can initiate another withdrawal at that time. In the meantime, you will have the ability to spend your balance to purchase goods or services if you choose.
Again, we apologize for the inconvenience this has caused.
Thank You,
PayPal
It looks like they will be rolling on the changes soon and might be things go back to normal but this matter have made us careful and more alert on this issue and now i think people will trust them less and will look to diversify in this payment processing with other networks so that their money is not locked in at one place.
Xoom.com i would say might be a better alternate for Paypal at India because it have some good partners like ICICI bank and other banks and they also provide good conversion rate instead of paypal.
There are lots of really decent options which i think many indians will love
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Thank you for the great tip, here we learn about very well features. I used google translator
I’m agree with you, showing maturity in your response. I never comment on those blogs, even when the content is great
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Xoom is overpriced. The $4.99 rate they advertise is not what they charge unless you want to give them ACH access to your bank account. You’re much better off to use Western Union.
Also, I’m not sure why this scenario would make you trust paypal less. This was not a paypal decision, it was an RBI decision. If you’re going to trust anyone less, trust your own banking network. Personally, I’m beginning to send all of my work to companies OTHER THAN India. Their central bank doesn’t seem to value the dollars I place into that economy, so I’ll send them to a country that knows how to do business. Blame RBI is you see a reduction in work as a result of this.
hello
now paypal withdraw problem is solved I recieved one mail by paypal.
PayPal
Dear
We have been diligently working with the RBI and our business
partners to resume Indian bank withdrawals for the thousands
of Indian businesses who depend on PayPal to sell their goods
or services in the global marketplace.
Today, we are happy to announce that the RBI has allowed us
to continue local bank withdrawals for settlements for exports
of goods and services. We are currently making changes to
comply with Indian regulations for settlements for exports of
goods and services, and we anticipate that, as of Wednesday,
March 3rd, customers will be able to use our
bank withdrawal service.
As part of the changes, you will be required to fill out a
new field entitled ‘Export Code’ when you 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, we will be back in touch with specific
instructions on how you can move your money into your bank account.
Moving forward, the RBI has told us that PayPal needs specific
approvals to allow personal remittances to India, which we
currently do not have. Until we get 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. In fact, with the
changes we are making to our system, PayPal is now set to be a
more powerful engine for exporters in India. With purpose codes
for export transactions and FIRCs (Foreign Inward Remittance
Certificates), you should now be able to get the export
related benefits you seek.
You can check the PayPal blog for additional updates.
http://www.thepaypalblog.com
We thank you for your business and for your patience during
the past few weeks.
Sincerely,
PayPal
Recent issues with PayPal withdrawals to Indian Banks & more over payments just randomly being reversed back to the senders will have a deep impact on PayPal’s reputation. It raises so many questions like (THIS MIGHT CONTAIN SPOILERS):
A) Should we trust PayPal in future?
ANS: ABSOLUTELY NO
B) Are they really concerned about our Money?
ANS: ABSOLUTELY NO, After a long period of two weeks we receive an apology letter stating that “We are sorry we goofed up opps!”? and stuff like “Your money just got sacked since this is nothing serious to us we are just doing a drill of playing a game with your hard earned money”?
C) Is RBI responsible for this?
ANS: UNQUESTIONABLY MAYBE, So, Question is why this is happening in India and nowhere else? Question is why we are being kept behind curtains and dark? Question is why Moneybookers and other Payment systems are working but PayPal is not? you just want to exclude the RBI out of this since they are least concerned with us. Everyone failed here! RBI off course you cant expect them to give you a comforting truth so a comforting lie should suffice you! And PayPal Ow man no shit a multinational company failing to inform and notify of an issue of this magnitude. That was an AWESOME combination of pure frustrating, destroying trust & spreading chaos.
D) So what does PayPal tell us now?
ANS: “We are sorry, but your valuable to us so please give us another opportunity to goof up and play some more engaging games with your money” and “We just love to make more profits by giving you a pathetic exchange rate”
D) What now?
ANS: DTA (Don’t Trust Anyone) Get your sleeves up against them and find your own ways to get paid over any other medium that serves better, communicates better and keep them in plenty. If one fails other should work out.
Ive let all my clients know about this issue and advised them (in advance unlike PayPal) to switch over to some other Payment system which is reliable, responsible and does the main thing “ACTION” at PAR. The truth will probably be dead and berried RIP about what happened because the shame and disgust they bring upon themselves is apocalyptic now.