Here is the email I just received from paypal
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• Any proceeds or earnings received into your PayPal account from the export of goods and services should be withdrawn to your bank account within 30 days.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• Any proceeds or earnings received into your PayPal account from the export of goods and services may only be withdrawn to your bank account in India.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.
This is really bad news... I completely agree that they have to follow RBI rules but whats the solution for below?
1.. What if we were to pay to affiliate in excess of $5000? Majority of credit cards have limitations of around $500-$1000 here.
2.. What about membership subscriptions? hosting subscriptions?
3.. What if one does not have credit card?
4.. What if we do not withdraw within 30 days?
5.. Does this means having enough money in Paypal, we cannot hire freelancers to get the work done who accept paypal only?
This is really frustrating.. I already mailed them with my issues, I hope to get some guidance and more information from them on this situation... But if anyone have any information, please share