Paypal Change Funds Withdrawal Functionality For India Users

by Sathishkumar on July 28, 2010

Today, I have received a mail from Paypal Asia Team, stating that according to their new regulations, they have changed the withdrawal functionality from paypal accounts for India Users. At present Paypal offers funds withdrawal service either by requesting a cheque or through electronic transfer from your PayPal account if you are an India user. But according to this new instructions, you will only be able to request for a cheque withdrawal of funds from your PayPal account.

The new regulatory instructions are taking effect from July 29, 2010 onwards, that is tomorrow, Thursday. They also mentioned that they are working very hard on bringing back the electronic withdrawal of funds service.

Screenshot of Paypal Email:

paypal mail

To request for a cheque withdrawal from your Paypal account follow the instructions given below:

  • Log into your PayPal account, click on ‘Withdraw’.
  • Click on the ‘Request a cheque from PayPal’ link.
  • Enter the withdrawal amount and select your mailing address, then click ‘Continue’.
  • Click ‘Submit’ to confirm your request.

Paypal usually charges $5 for funds withdrawal using cheque’s. Since we Indian paypal users have no other option to withdraw our funds, they said they will refund the $5 cheque withdrawal fee for cheque withdrawals made from July 29, 2010 onwards.

In the past, Paypal came under heavy criticism for its way of handling user accounts in India, but the problem has been resolved by them very soon. Now again they come with a new regulations, which isn’t good for Indian users. While there are uncertainties around PayPal, one thing still works in their favor: Paypal still remains a trusted mode of collecting payments for Online merchants and businessmen.

Since, Paypal hasn’t mentioned anything about when the Electronics Fund transfer will resume, we will probably have to wait to get more details on this new issue.

Also, check our post on how to verify paypal using entropay virtual credit card.

Do share your views about the new regulatory instructions from Paypal here in the comments section.

Tagged as: Cheque Withdrawal, Fund Withdrawal, Paypal, Paypal India

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Article by Sathishkumar Varatharajan

Sathishkumar is an Online Marketer and a full-time Blogger.

Sathishkumar Has Written 634 Articles For TechieMania.com

  • http://www.serradinho.com George Serradinho

    You PayPal users in India are always in the news so to speak. There is always something happening or being block again. I’m sorry to hear, but I’m sure PayPal will find a solution.

    I’m in South Africa and I can transfer my PayPal funds directly to my bank account and it’s cool.

    • http://www.techiemania.com Sathish

      Every time we are in news with the headlines Paypal, our normal life will be put in jeopardy. Likewise, there won’t be any good from this news which i have written here.

    • http://freepaypalfast.weebly.com Silent@FastPayPal

      I noticed the same thing about PayPal and India. Rather odd, and makes you feel bad for their users. I’m in the U.S. and I never have problems either.

  • Sonia

    A new fact about Pay Pal :
    I applied for a charity account with Pay pal because its free and supported by vbulletin software for payment subscription, I have all the documents like NGO Registration certificate, Memorandum of Society, Society PAN card, and the Bank details , bank details were verified by the Pay Pal by depositing amount of Rs. 2 and 40 paisa, after submitting all the document as per said in their website and in their emails, they again asked me for a authorization letter from our Society members on the letter head of the Society, I submitted it as per they said, but after completing all the formalities they denied me for the account, just because they have no tie-up with India regarding charity account, what the hell is this, why the pay pal people should not mention at the time sign up process. I have wasted around 1000/- rs in doing fax to pay pal and after 4-5 days they denied. Now I have no other option left, so I signed with ccavenue, but the cost of basic signup is around 8500/- and the per annum fee is Rs 1500/- after tax, I think PayPal is playing with Indian customers, We wrote a letter against this to the Reserve Bank of India, and also file a RTI to know the working of PayPal in India, after searching on the Internet we also found that PAYPAL is run by ebay, and found tons of complaints against ebay , after collecting data of ebay customers, we called them personally and found a big scam, we are planning to file a Public Interest litigation, against HomeShop 18, IndiaTimes Shopping, Ebay, AVA etc,
    Don’t apply for a charity account with pay pal if you are living in India. Just wastage of time and money.

    • http://www.techiemania.com Sathish

      Seriously I don’t know what is wrong with Paypal and RBI. But there should be some issue between the two. That’s why paypal is doing some changes in India. And thanks for notifying us about the Paypal Charity account Sonia.

  • Sonia

    PayPal is earning a big amount from Indian customers, and not paying Tax to indian govt., I think RBI is doing just to collect tax and customer data from PayPal, this is good for our country.

    We should support RBI.

    • http://www.techiemania.com Sathish

      But it seems they have paid up their tax, Since the problem is solved pretty quickly than expected.

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