PayPal India will discontinue all Personal accounts in India. In a string of problems that Indian PayPal users have faced in recent months, this seems the latest. PayPal an eBay company, in January this year had stopped personal payments to and from India. According to Indian Law [Payment and Settlement Systems Act 2007], PayPal had to register itself with RBI, which PayPal had not done, and on receiving a notification from RBI, had to stop its operations here, namely personal remittances, and bank withdrawals to India.

PayPal started Bank withdrawals in early March, though PayPal users were asked to update there account with their PAN number (Indian Personal account number, which are used for all financial data relating to income tax) and choose a withdrawal code as to why these payments are coming in the country.

In the latest development, PayPal says they will discontinue servicing personal accounts in India, though users will still have an option of having a Paypal Business accounts. (more…)