PayPal explains Indian service suspension

Unannounced temporary suspension due to enquiries from country's regulators over revised licensing rules, confirms e-payment services provider.
Written by Liau Yun Qing, Contributor

PayPal has confirmed that its recent service suspension involving local bank transfers and personal payments to and from India, was the result of the country's revised licensing rules.

In a blog post Tuesday, Anuj Nayar, director of global communications PayPal explained that the latest incident in India was a response to enquiries local regulators posed, specifically, on whether personal payments constitute as remittance into India.

According to Nayar, who also posted a comment on ZDNet Asia's report on the issue, personal payments to and from India will be suspended for at least a few months until the company resolves questions from the regulators. Meanwhile, personal payment senders will need to find another payment method, he added.

Local bank withdrawals should be available to customers within the next few days, he said. PayPal will restore money into the accounts of Indian customers who have recently initiated withdrawals and these users will receive reimbursement for any withdrawal fee charges.

Customers with a negative balance due to PayPal's reversal of payments should contact the sender, and arrange for the payment to be resent if the amount was transacted for goods or services, Nayar explained. This can be done by selecting the "Send Money" tab and selecting "Purchase", he said.

Nayar added that only personal payments should have been reversed. Customers who believe their payments were mistakenly reversed should request for the payment to be sent again. Customers who still face problems can contact PayPal customer support.

The service suspension had evoked a myriad of comments from ZDNet Asia readers, several of whom expressed anger over how the service was terminated without notification.

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