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RBI action against PayPal as new edition of capitalism

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The ongoing issue in the country between PayPal the new RBI guidelines is being shamelessly portrayed as a correct step of Reserve Bank of India by the bureaucrats, stock brokers and high capitalists of the country. Although the new rules of PayPal are set to disturb and create huge inconveniences to the Indian freelancers and small scale & growing IT Service providers, these lots are found to continue giving reasons for the guidelines.

Reserve Bank of India
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The Time Limit of 7 Days: Dictatorship from RBI
The 7 day time limit within which PayPal users are bound to withdraw money is being portrayed by the pro-RBI lot as a mandate which will allow better tax flow and help boost economy. However in actual, -by the new guidelines PayPal was mandated by RBI to pay interest to its Indian users for keeping money for more than seven days, something which a global virtual monetary service can never comply because of obvious reasons.

This is plain dictatorship from RBI in either bringing PayPal into a framework within which the Banks in India operate, or to tie down their hands and restrict their powers in Indian market ( one of the biggest globally) so that other Banks in India can take benefits off the gap created by the situation. In fact with PayPal being tamed down, it is bigger and better chance to reap benefits for other Payment gateway services of other banks/Providers in India & abroad such as ICICI Payment Gateway (PAYSEAL), Citibank Payment Gateway, HDFC Bank Payment Gateway and AXIS Bank Payment Gateway and even third party gateway providers like CC Avenue- Mumbai, Transecute- Mumbai & Time of Money.

It would be worth mentioning that with the increasing popularity and huge fan following of Pay Pal amongst Indian customers was hampering the business of Banks in India more and more, until these dictatorial guidelines restricted PayPal, at the cost of huge blow to Indian freelancers of course.

Another question that arises here is why the Indian freelancers who work for their living for foreign services have to pay taxes to the Indian Government, apart from paying service taxes for using Internet and Phone connections. Such freelancers are mostly dependent on small projects (ranging from data entry to creation of small software’s) of foreign companies and clients because of the inability of the Government and current system to provide them with their daily bread and butter. They would work for another country with no aide and help from the Indian government and yet pay taxes to Indian Government. What for?

The 500 dollar Transaction Limit: The great Indian Bluff
With the new guideline asking PayPal to report any transactions above 500 dollars to the government, the RBI tried to showcase that the Government is now trying to have better transparency and control of funds flowing in and out of the country. But the question is, – all this while was there no check or verification on transactions taking place to and fro? The answer is YES, there were of course verifications of the PayPal transactions. As reported in a previous article in Times of Assam, the flow of funds to Indian PayPal customers is actually through PayPal India, which is monitored and transactions verified by Authorities. So the claim by RBI and the pro-RBI guideline group is nothing but a false propaganda, misleading public, to tie up PayPal and thereby help the capitalistic banks in India to rise and shine.

We cannot ignore the fact the millions of fraudulent money hidden by Indians in Swiss Banks have been ignored by Government so far by Authorities except for giving Ashwashan (Assurances) to eradicate it. In fact a huge number of such people whose money is well hidden in Swiss Banks are the bureaucrats, stock brokers, bankers, etc who run the show in capitalistic India. Ultimately the entire game plan of RBI in this gimmick is something similar to the Government’s lowering down costs of vegetables and food items for the public and increasing price of petrol or cooking gas at the same time, so that the people ultimately pays more (yet be happy to see onion or brinjal prices going down!). There’s no doubt rulers of India are getting more and more capitalistic, helping the same rich section getting richer by sucking everything out of the common public. The Pay pal RBI story is part of the same ploy; inconvenience to freelancers, small scale IT service providers are going to create opportunities to the bigger players, restriction on PayPal would allow Indian Banks to capture more market.

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RBI action against PayPal as new edition of capitalism

By: Priyankan Goswami Read time: 4 min