One of our readers has sent us a copy of an email apparently sent out by online payment gateway CCNow stating that all transactions and accounts pertaining to clients headquartered in India are being suspended from February 7th, 2011, 11:59pm CST onwards. The email (a copy of it below) states that the suspension is because an audit on online payment companies is being conducted by the Reserve Bank of India, and in order to be compliant, CCNow may create a separate business entity in India.
MediaNama has not been able to independently verify the authenticity of this email. Our call to CCNow support in the US was not answered (not working hours in the US right now). We’ll update when we get a response to the email that we’ve sent to CCNow: we’ve requested a confirmation, and for details on how long it will take for them to be compliant and establish an entity in India.
As we had mentioned earlier, following PayPal’s announcement, that event though there are alternatives to PayPal in India, all of them will have to comply with the RBI’s regulations. Expect more such instances in the months to come.
Email allegedly sent to CCNow clients in India
From: ccnow clients
Sent: Tuesday, February 08, 2011 4:08 AM
Subject: URGENT/ACTION REQUIRED – Message from CCNow
Dear valued client,
You are receiving this urgent communication because the Reserve Bank of India is conducting a major audit of all ecommerce and online payment companies (e.g. Visa, MasterCard, PayPal) regarding transactions originating within India. The objective of the audit is to make certain that certain regulatory processes, which are unique to India, are being met. In order to be compliant, CCNow will likely create an Indian business entity so that we may not be subject to similar issues in the future. Until that entity is created and finalized, we are being required to halt processing orders from clients headquartered within India. These transactions and accounts will be suspended at 11:59pm CST, February 7th, 2011 at the demand of the Reserve Bank of India. This does not just affect CCNow, but ecommerce and online payment companies all over the world.
We understand that this will impact your business on such short notice, and we have done everything within our power to avoid interruption. With your best interests in mind, we must suggest an alternative solution until such time as we have established an entity in India. At this time, we would suggest using CCAvenue, as they are not currently affected by this situation.
In order to comply with the Reserve Bank of India while they conduct their audit, we are required to halt transactions until this audit has been completed. We will keep you up to date as we proceed with plans to establish an entity in India.
We are truly sorry for any inconvenience this may cause and hope to work with you again in the very near future. You are a valued client. We hope that you will give us the opportunity to serve you again in the near future as we further our commitment to helping India and its entrepreneurs succeed in the global market.
CCNow Client Services
firstname.lastname@example.org | http://www.ccnow.com
Phone: +1 952 908 4124 | +1 866 586 3784
CCNow, Inc | 9625 West 76th Street, Eden Prairie, MN 55344