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PayPal stops Electronic Fund Transfer to India

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A shock for Indian Paypal users- From July 29 onwards, Indian Paypal users will not be able to withdraw money through electronic fund transfer, only cheque withdrawal is possible from your PayPal account.

The strict financial regulations in India are the main hindrance for these transactions. Presently Indian PayPal users are permitted to add fund to PayPal account through credit card only, at the same time the subscribers of other countries can transfer the cash to their account flexibly through Bank transfer, Credit card or Debit card.

To request for a cheque withdrawal

  1. Log into your PayPal account, click on ‘Withdraw’.
  2. Click on the ‘Request a cheque from PayPal’ link.
  3. Enter the withdrawal amount and select your mailing address, then click ‘Continue’.
  4. Click ‘Submit’ to confirm your request.

PayPal says “ In order to help you with this change and until further notice, we will refund the $5 USD cheque withdrawal fee to you for cheque withdrawals made on July 29, 2010 onwards. We work tirelessly to resolve this situation as quickly as possible. Means, you need not to pay the fee for cheque request.

Update (July 31 ) : Good news Paypal has resumed the Electronic fund transfer

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5 comments… add one
  • Its really fine and helpful.

  • Really disappointing. Now we dont have any other option but to wait for further notice from Paypal.

    The issue I am concerned about is that Paypal sends the cheques through regular mail, which works at snail’s speed in India. More concern about the mail being lost !

    I think Paypal should let Indian users let us transfer our funds to Xoom for the time being, which also transfers international currency earned to bank accounts in India.

  • Hope this is a temporary measure as claimed in the PP mail…

  • You can use this site also to refill your Paypal or Alertpay account : http://www.skydevelopment.co.in/plans.php
    thats now one and only paypal and alertpay refilling station worldwide.
    You have to submit an order from that site and after that deposit cash or transfer money online direct to thr State bank of india account. After payment they just need few hour to refill your account. Doller conversion rate is little bit high, but thats like a fees and I think thats affordable.
    I am already using that site regularly to refill my paypal.

  • Thanks for all the info.

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