wordpress blog stats
Connect with us

Hi, what are you looking for?

, ,

PayPal Increases Receiving Limit In India To $3000 Per Transaction

The grip is slowly loosening: after placing restrictions on PayPal in India, it appears that the Reserve Bank of India has allowed PayPal to increase the receiving limit to $3000 per transaction; In March, it had placed a limit of  $500 on transactions. Last month, PayPal forced auto-withdrawal upon Indian customers, ensuring that it functions as a payment gateway rather than a wallet by transferring money to Indian banks within a stipulated time. It still can’t operate as a wallet – money received cannot be used to make payments.

This increase in limit to $3000 will come as a relief to individual outsourcing businesses using PayPal, since the $500 limit meant that they had to request payments in multiple transactions. (Hat Tip: Preshit Deuskar and Abhishek Baxi). Digital Inspiration reported a few of days ago that PayPal was auto reversing all payments above $500, leaving users with a negative balance (in case the money has been transferred to a users bank account). This means that PayPal is willing to take a hit, if customers do not use their payment services for future transfers.

As we had mentioned earlier, the RBI typically takes a wait-and-watch approach. It first placed stringent restrictions on PayPal, and increased the limit. More might follow. We’ve seen parallels in mobile payments, where they initially launched with low payment limits, and relaxed them based on how the market responded.

The guidelines for receipt of payments via PayPal remain the same:

– Add a Permanent Account Number (PAN) and Purpose Code: By adding this information, you will continue to receive export-related payments into your PayPal account and your account will not be limited from receiving future payments.
– Add a bank account in India: This will help us to auto withdraw your PayPal balance out of your PayPal account and transfer your balance to your bank account in India. Note: If you don’t add a bank account in India to your PayPal account then your PayPal account will also be limited from receiving export-related payments.

Advertisement. Scroll to continue reading.

Note that we wouldn’t find the exact notification that allows the increase in receiving limit to $3000 per month. More on this in a bit.

PayPal vs RBI:
PayPal Forces Auto Withdrawal On Indian Users
– PayPal Now Requires Purpose Code, PAN & Bank Account Details From Indian Users
– PayPal Issue: The RBI Notification Applicable To Online Payment Gateways
– PayPal Restricts Payments To India, Bars Purchases; Why They’re Right
– Updated: PayPal Resumes Electronic Payments To India; Can’t Be Re-Used For Making Payments
– PayPal Needs To Comply With RBI Regulations By April 30th, 2010
– PayPal Payments In India Will Require ‘Purpose Code’; Still No P2P
– PayPal To Resume India Payments By 3rd March; Export Code Needed
– Updated: eBay’s PayPal Disallows P2P Payments, Transfers To Local Banks

Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



Do we have an enabling system for the National Data Governance Framework Policy (NDGFP) aiming to create an repository of non-personal data?


A viewpoint on why the regulation of cryptocurrencies and crypto exchnages under 2019's E-Commerce Rules puts it in a 'grey area'


India's IT Rules mandate a GAC to address user 'grievances' , but is re-instatement of content removed by a platform a power it should...


There is a need for reconceptualizing personal, non-personal data and the concept of privacy itself for regulators to effectively protect data


Existing consumer protection regulations are not sufficient to cover the extent of protection that a crypto-investor would require.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ