We have covered the Paypal issue extensively on TechVorm. If you aren’t aware of the problem read the following articles :
Paypal Answers Reversal Questions
Official Statement From Paypal Regarding Reversal’s
Paypal Reversing Money Sent To/From India Using ‘Personal/Services’ Option
If you are tracking this problem then you might be knowing that though you can send or receive money through your Paypal account but cannot withdraw money to your Bank account. This problem has caused a liquidity crunch amongst various freelancer’s (including companies) that depend solely on the web income.
Although in the recent post at paypal blog, it was mentioned that the Bank withdrawal facility will be available in the next ‘few’ days but nothing has happened so far. In this post, therefore i am going to share with you the authorized payment processors in India using which you can withdraw money without worrying about the same thing happening to you as in case of Paypal.
The Reserve Bank of India (RBI) has listed some of the legit payment processors using which you can withdraw money to bank’s in India. Here is the entire list as mentioned in the The Payment and Settlement Systems Act, 2007 (Last updated on January 31, 2010) :
- Bahrain Financing Company, BSC (c )
- Buyindiaonline.com Inc.
- Coinstar Money Transfer (Ireland) Limited
- Global Foreign Exchange Inc.
- MoneyGram Payment Systems Inc.
- Royal Exchange (USA) Inc.
- UAE Exchange Centre LLC
- Wall Street Exchange Centre LLC
- Western Union Financial Services Incorporated
You most probably wont have heard of most of the names given in the above mentioned list (and neither have i). But one positive thing i found while carrying on a search on these name was that Buyindiaonline.com Inc is sister concern of Xoom. Meaning Xoom operates in India with same name as far as regulation and banking is concerned. In short, it is safe to use Xoom for receiving money from outside India.
Moreover, in order to verify that Xoom works, i am withdrawing some amount via Xoom. Though the withdrawal is not a receipt from outside India rather, it has been self financed by my own paypal account. So, if everything goes well i will publish a new post explaining the procedure i followed.
P.S – You can check out the official RBI notification containing details regarding the above mentioned payment processors HERE.
Another alternative for Paypal is MoneyGram.Services provided by MoneyGram are customers can receive and send money internationally, transfer on a person-to-person basis, direct-to-account, ATMs and kiosks for deposit and cash receipt, cash-to-a-mobile phone and cash-to-card. MoneyGram also helps to transfer money through MoneyGram authorised agent locations located in all parts of the world. For more details please visit:
Even Xoom has stopped working like paypal no Indian funds can be transferred from Paypal to Indian bank account.
Well am a B.com grad so, i know a bit about these things. Moreover i do some research before writing posts such as these. BTW, i have given the link of the RBI circular.
Great information partitosh
i am a fanatic of epayments, and to promote epayments I write a blog
where did you get the RBI information
Yes Paypal can still be used to send/receive money. The only problem is of withdrawal. A blog post will be published regarding the outcome.
If your transaction is successful I will try out XOOM. By the way can PayPal still be used to pay for something.
Good to know that someone did like it 🙂
No one wants to. All the other processors are too complicated.
Useful Information Paritosh
I just hope that XOOM works out well for you and do post the entire porcedure you followed! looking forward to that. I don’t really want to get into hassles of all these payment processors.