Crisis experienced by PayPal India

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For the past few days, I’ve noticed similar alerts from several of my online jobs, particularly Bukisa and Pixprofit. When I first encountered this with Pixprofit defaulting my PayPal account to PayPal India, I wondered why would Pixprofit do that. I then just changed it when I knew for a fact that I didn’t register my account under PayPal India.

My inference was that majority of its users are from India. I began to think that this was just an initiative they started to segment their community. Another inference was maybe there is now a special procedure that PayPal India started when it comes to withdrawing PayPal funds. When I realized that I wasn’t affected by this, I just went on with my daily task.

However, earlier today, I again encountered the same situation with my Bukisa Account. When I logged in to my account, I received a similar alert in regard to withdrawing PayPal funds. Curious as always, I thought something must be wrong here. PayPal India must be encountering a major issue at the moment.

I then started with my research. I right away found my answer in PayPal’s official blog. Here’s the link for your reference From what I understand, withdrawing PayPal funds to local bank accounts are currently restricted. According to Farhad Irani, lead the PayPal business in Asia Pacific, although this issue can potentially be potentially be resolved in months, Farhad and his team are doing every possible way to resolve this concern. They are now coordinating with the Reserve Bank of India to mediate in this situation.

Meanwhile, what is being offered by PayPal is to utilize e-check when withdrawing PayPal funds. Members can click the Withdraw Money tab and request a check withdrawal. You will normally receive this in five to seven business days and has a charge of $5. Paypal is willing to reverse this fee for the inconvenience that its members are undergoing because of issue. This is a very good PR move by PayPal, but can this be sustained? This will just be a band-aid remedy for its members. I just hope the Reserve Bank of India will be able to act upon this matter as soon as possible.


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