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Paypal Stopped Electronic Fund Withdrawal in India AGAIN!


5 Months back Paypal stopped personal payment to India and reversed money sent under Personal payment. The whole fiasco happened because of issue between Paypal and RBI and later on Paypal come with a solution of Purpose code to withdraw money but personal payments are still not allowed in India.

Here is another big news for Indian Paypal users, Paypal is going to stop electronic fund withdrawal from July 29th onwards.

In an official Email notification they added:

Official Email
In accordance with regulatory instructions, we would like to notify you about a change in our withdrawal functionality in India starting on August 1, 2010. At present you can request for either an electronic or cheque withdrawal of funds from your PayPal account if you are an India user.

From July 29, 2010 onwards, you will only be able to request for a cheque withdrawal of funds from your PayPal account.

While we are working hard to restore the electronic withdrawal service, in the meantime, we are bringing this matter to your attention so that you can plan your future withdrawal activities accordingly.

To request for a cheque withdrawal:
  1. Log into your PayPal account, click on ‘Withdraw’.
  2. Click on the ‘Request a cheque from PayPal’ link.
  3. Enter the withdrawal amount and select your mailing address, then click ‘Continue’.
  4. Click ‘Submit’ to confirm your request.
In order to help you with this change and until further notice, we will refund the $5 USD cheque withdrawal fee to you for cheque withdrawals made on July 29, 2010 onwards.

For any questions, please log into your PayPal account and click ‘Contact Us’ at the bottom of the page.

We apologise for any inconvenience caused from this change in our withdrawal functionality. We will provide ongoing updates to you here. We thank you for your attention and patience as we work tirelessly to resolve this situation as quickly as possible.
You can find more info on official paypal blog.

This issue has created another buzz among Indian bloggers and Freelancers. At this point it is unclear that when this issue will be resolved.

The only option to withdraw money from Paypal will be Cheque withdrawal. Paypal charge for Cheque withdrawal is 5$ but in this case they will do a refund of 5$ for every cheque you will be requesting.

How to withdraw money via Cheque in Paypal?

Paypal already added an official page to help Indian users on how they can withdraw money via Cheque.

One thing which I’m not sure that Cheque sent via Paypal will be sent via Courier or by ordinary postal service. More over if you are getting Cheque in U.S $, it will again take 15-21 days to clear your cheque and added service tax will be charged by your bank.

For now I have quickly withdraw money using Electronic transfer. Lets hope that this issue will be resolved ASAP.

What are your suggestions for now in this whole paypal issue?
That's the bad news...I already got the email from paypal. I don't know why the government (RBI) doing this..Paypal is a major support for freelancers to get payment from US clients..who wanna waste time to go to the time consuming cheque process !!


Right off the assembly line
I guess this bad news could not have come at a "better" time. Now is the perfect season to make money online=>back to school, Halloween, Christmas, etc., and I take payments mostly by Paypal. Guess I would have to look for an alternative soon. :(

Purushyottam Ghoshronald Cruzag
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I received email today from paypal..back to old electronic withdrawals :D

We've received good news. You can continue to enjoy electronic withdrawals just as you did before.

While we have received your appreciation for the advanced notice and the refund of the cheque processing fee, we also have heard loud and clear that you highly value the ease-of-use of our electronic withdrawal service. Our customers are our number one priority and we are working tirelessly to improve our service.

Thank you for your patience and in appreciation for your continued support, we will still provide the $5 USD processing fee refund for any cheque withdrawals made from July 29, 2010 until further notice.

For any enquiries, please contact PayPal customer support by logging into your PayPal account and clicking on ‘contact us' at the bottom of the page. "
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