In February, PayPal's decision to suspend transactions to and from India had come as a shock to Indian users who later saw the order restored after the company announced the resumption of the payment services a few weeks later.
This development came following the Reserve Bank of India's green signal to restart bank withdrawals for settlements for exports of goods and services.
Four months later, another of PayPal's decisions has been met with similar reactions by Indian users. Starting 1August PayPal will not allow electronic withdrawal of funds from PayPal account.
The only option for users would be to request for withdrawal of funds by cheque. According to PayPal the decision was prompted by the need to comply with ''regulatory instructions.''
PayPal said it was working to restore the electronic withdrawal service.
Meanwhile users of the electronic facility can request for a cheque following these steps:
- 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 till now levied a $5 ''withdrawal fee'' on every cheque withdrawal. This has been waived off on all withdrawals made on or after 29 July.
With PayPal facing difficulties some Indian payment services currently operational are:
However, the question still remains whether users can trust payment gateways as much as Paypal. According to observers it does look like Indian customers might look for alternatives instead of waiting for Paypal to get over the problems.