Hike in India PayPal Payments Ceiling to US$3,000 per Transaction
Oct. 20 – Users of online payment web site PayPal in India can now accept up to US$3,000 per export-related transaction in their accounts, with the RBI raising this limit from US$500 per transaction earlier.
The payment has to be withdrawn within seven days irrespective of the currency risk. Also, RBI has barred purchases abroad with PayPal balance. This causes losses to the buyers as it adds to exchange conversion losses, tax and other charges. Users also feel that PayPal exchange rates are far below the current rates.
The raise in the limit is with immediate effect, but merchants using PayPal accounts to receive funds would need to add their PAN (Permanent Account Number) and bank account details to fulfill the RBI guidelines. The stride will assist the Indian SMEs and consumers who use PayPal to accept their payments.
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