Thats a good idea Vinay, Thanks.  Didnt know that can be done.

Just got a mail from paypal as below:-

" Dear XYZ,

We have been diligently working with the RBI and our business
partners to resume Indian bank withdrawals for the thousands
of Indian businesses who depend on PayPal to sell their goods
or services in the global marketplace.

Today, we are happy to announce that the RBI has allowed us
to continue local bank withdrawals for settlements for exports
of goods and services.  We are currently making changes to
comply with Indian regulations for settlements for exports of
goods and services, and we anticipate that, as of Wednesday,
March 3rd, customers will be able to use our
bank withdrawal service. 

As part of the changes, you will be required to fill out a
new field entitled 'Export Code' when you request a withdrawal.
This information is required under the current laws of India in
order to identify the nature of cross-border merchant transactions. 

On Monday, March 1st, we will be back in touch with specific
instructions on how you can move your money into your bank account.

Moving forward, the RBI has told us that PayPal needs specific
approvals to allow personal remittances to India, which we
currently do not have.  Until we get these approvals, personal
payments into India will remain suspended.  However, if you are
an exporter, you will continue to be able to use the PayPal
service for payments of goods and services.  In fact, with the
changes we are making to our system, PayPal is now set to be a
more powerful engine for exporters in India.  With purpose codes
for export transactions and FIRCs (Foreign Inward Remittance
Certificates), you should now be able to get the export
related benefits you seek.

You can check the PayPal blog for additional updates.

www.thepaypalblog.com

Cheers...

Bad news continues for Indian users of Paypal.
Looks like we cannot use funds we have received from abroad for online purchases.
ie All funds received must be transferred to bank accounts, and all purchases to be made by credit cards.

I think this is crazy, but was much needed by RBI to keep a check on online transactions.

Going to hit many of us...

Yeah this is a new problem from paypal. I got a mail this morning as below...

----------------------
Dear XXXXXXX,

In compliance with Indian regulations, if you are selling products and services to customers globally, please review the following important information:

•       Any proceeds or earnings received into your PayPal account from the export of    goods and services should be withdrawn to your bank account within 30 days.

•       While making the withdrawal please make sure you select the purpose code that best fits your business.

•       Any proceeds or earnings received into your PayPal account from the export of goods and services may only be withdrawn to your bank account in India.  This received amount cannot be reused for making purchases.

•    If you would like to make purchases on any website that accepts PayPal, you can continue to use any credit card issued by a bank in India.

For any questions, please reach out to our customer support teams by following the steps below:

1.     Log into your PayPal account

2.     Click "Contact Us" at the bottom of the page

3.     Click on "Send Us" an email or "Call Us" to reach us by phone

We cannot thank you enough for your continued attention and patience.



Thank you,

PayPal

-------------------

so now first you withdraw to your account and pay a high conversion  fee, and the buy from your inr card and pay an even higher conv. Fee again !

What If I send the money to my another paypal account from the account (in which I got fund from other country) and purchase from it?

Will it work out?

will paypal work without credit card


  if i make paypal accout and verify it with a bank account
  and receive paypal money from other paypal member.


according to current situation
is there any problem,will it work anybody please

 

Since I always buy with credit card using paypal. I am safe.

i have no credit card is there any way that i can use paypal

if i receive money from other paypal user can i use it
for buying

Dinil, paypal said that we cant use the fund received from abroad cant be used for purchases. But you can use the fund received from indian people.

I need help from someone who can say that if I transfer the fund received from foreign people to my another paypal account and use it for purchases. Will this work out???

well you would pay 4.75 % transaction fees. why would you do that !

This was required for mainly two reasons
1. Lot of hawala and benami transactions happening through the route and the purpose of finance remains anybody's guess.
2. Lot of people receiving money for slae of goods and not paying up the taxes etc.
So as always due to some one's follies most of us get penalised.

However if you are mostly a buyer, you are mostly unaffected, but in case of refunds etc, due to transaction falling through there could be complications. 

Quote from: flyingboxcar on April 12, 2010, 05:37:16 PM
However if you are mostly a buyer, you are mostly unaffected, but in case of refunds etc, due to transaction falling through there could be complications. 

Doesn't pay pal provide 'Credit' balance where if some one refunds you, the amount (in USD) remains in your account as credit which you use in later transaction - just like the $2 credit one use to see in a fresh Pay pal account, which pay pal used to charge to your credit card for verification purpose ?

Heli Pross returned me few dollars since they were out of stock on some items. Pay pal put it back into my creditcard account. I could see a credit equivalent to dollar in my credit card statement.

OOPS!! thats like paying the conversion and credit card charges TWICE (in fact thrice when you finally order the item you got refund for). That sucks!!

Quote from: gauravag on April 11, 2010, 01:23:48 PM
well you would pay 4.75 % transaction fees. why would you do that !

I have transferred a fund from my account to another new paypal account and it does charge me any fee.

In case if they charge, I think it wont be as much as that we loss in the currency conversion fluctuation that we face in withdrawal and adding funds.

I am waiting for gaurav's reply for this...