In one of my last blog post i discussed the official statement released by paypal on their blog. I criticized paypal for not answering questions regarding more important things like the reason for such reversal’s, when will things get back to normal, availability of bank withdrawals, etc.
On 9th February, 2010 paypal posted yet another blogpost on their blog regarding the issue faced by India users answering almost all the problems. Here is an important excerpt from their blogpost,
….1. Why did you suspend local bank transfers and personal payments to and from India?
We temporarily suspended these services to respond to enquiries from the Indian regulators, specifically questions on whether personal payments constitute remittances into India. We’re working with the regulators and our bank processing partners in India to get this resolved as quickly as we can. We realize that this is causing considerable inconvenience to our customers and I want to reassure you that this is a top priority for the leadership at PayPal
2. When will personal payments be turned back on?
The regulators recently let PayPal know about revised licensing rules that we are now actively engaged in securing. Personal payments to and from India will be suspended for at least a few months until we fully resolve the questions from the Indian regulators.
3. When will local bank withdrawals be available?
Customers should be able to withdraw their funds to a local bank within the next few days. In the meantime, we’re going to restore the money into the PayPal accounts of any customers in India who have initiated a recent withdrawal, so they know that the money is safe in their accounts. Customers will also be reimbursed for any withdrawal fee charges.
4.The PayPal reversal has left me with a negative balance. What shall I do?
If you bought something or transferred money out of your PayPal account to your bank account before we reversed the payment then you may be left with a negative balance. If this was a payment for a purchase of goods or services, you should contact the sender and have him or her resend the payment as follows:
(a) click the Send Money tab, and
(b) select “purchase.”
If this was a personal payment, then the sender will need to find another payment method until we restore the service. We’re sorry about this. If you can’t recover the funds from the sender, you can bring your PayPal balance current by logging in to the PayPal account and clicking the “Resolve Negative Balance” link on the Account Overview page.
5. My payment was reversed but it was not a personal payment. What happened?
Only personal payments should have been reversed. Customers who believe that their payments were reversed in error should request that the payment be sent again by following the steps above (click the Send Money tab and select “purchase.”)….
By reading their blogpost it confirms that Paypal is having issues with RBI (Regulator’s) and that they are working towards finding a solution (Ah… Relief!). By saying, “we’re going to restore the money into the PayPal accounts of any customers in India who have initiated a recent withdrawal“, They are also assuring those whose money is stuck in between that they will get the money back into their account safely. Moreover, they are also confirming that the amount lost as withdrawal fee will be refunded back to their accounts.
You can read the entire blog post Here.
UPDATE : Mr. Farhad Irani, the man responsible for the PayPal business in Asia Pacific, has posted yet another blog post stating that Paypal is working day in day out to get this issue resolved. You can read the entire post on their official blog.