wordpress blog stats
Connect with us

Hi, what are you looking for?

PayPal & Online Payment Gateways Allowed $10,000 Per Transaction By RBI

The Reserve Bank Of India (RBI) has increased the transaction value limit for online payment gateway service providers to $10,000 from the existing $3000 with immediate effect, as per a new notification.

This means that Indian users can now receive up to $10,000 per transaction through services like Paypal, which could be hugely beneficial for individual outsourcing businesses using PayPal, since they can now request payments in a single transaction rather than multiple transactions.

However, these services still can’t operate as a wallet i.e. money received cannot be used to make payments, but we wonder if RBI will also plans to relax this restriction in the forthcoming future. Note that PayPal had received an approval for domestic payments in India in October 2012.

As we had mentioned earlier, the RBI has taken a typical wait-and-watch approach. It had first placed stringent restrictions on PayPal, and then increased the transaction value limit to $3000 per transaction in October 2011 and $10,000 per transaction now. We’ve seen parallels in mobile payments, where they initially launched with low payment limits, and relaxed them based on how the market responded.

Other guidelines for online payment gateway service providers however remain the same. These include:

– Authorised Dealer Category- l banks are being allowed to offer repatriation of export related remittances by entering into arrangements with Online Payment Gateways, after carrying out due diligence
– This facility shall only be available for export of goods and services of value not exceeding $10,000.
– The banks will open a NOSTRO collection account for receipt of the export related payments:
– Exporters will have to open an account with the Online Payment Gateway, but no funds are allowed to be retained in such accounts.
– Repatriation of funds representing export proceeds to India for credit to the exporters’ account, in no case, later than seven days from the date of credit to the NOSTRO collection account.
– The bank will have to ensure that purpose codes are reported to the RBI.
– Resolution of all payment related complaints of exporters in India shall remain the responsibility of the Online Payment Gateway.

PayPal vs RBI:
PayPal Increases Receiving Limit In India To $3000 Per Transaction
– 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

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

News

A survey by the National Payments Corporation of India (NPCI) found that at least 80% of households now use digital payment apps like Paytm,...

News

In an affidavit filed before the Supreme Court, the Reserve Bank of India (RBI) has said that companies like WhatsApp, Google and Amazon have...

News

While digital payment adoption began to grow significantly post demonetisation, the COVID-19 pandemic accelerated this shift over the last year, according to PwC India’s...

News

We missed this earlier.  A technical policy paper authored by researchers at global card network Visa Inc. has proposed a common protocol that can...

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

© 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to Daily Newsletter

    © 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ