RBI Guidelines to PayPal make life hell for IT Service Providers


Reserve Bank of India Logo

By- Priyankan Goswami

The conflict between PayPal and RBI’s recent Regulation’s which led to PayPal to declare new rules to be brought into effect is set to affect adversely all small scale Freelancers and Service providers. Post the write up named PayPal’s new rules based on RBI Guidelines : Blow on Indian Freelancers published in Times of Assam on 30-Jan-2011, Times of Assam has been sent messages and emails by a huge lot of small scale service providers, who depends on the foreign clients for their daily bread and butter. All sorts of service providers,- small data entry firms, medical transcription providers, copywriters, web designing firms, report writers, freelance software developers, graphic designers, animators and many more are set to be hit by the new regulations.

At one end when Inflation is sky rocketing in the country and the common man has to suffer the burden of pseudo economic growth, the inconvenience generated to the affected people has already raised the question as to whose concern the Government of India thinks about. The Government has not shown any positive means of late to stop price rise of commodities, has shamefully commented that the huge amounts of black money hidden in Swiss Banks cannot be recovered, but has duly taken steps like the one like the PayPal controversy which would inevitably lead to inconvenience, reduction in profit or even shut down of some service firms and freelancing. The big firms and the Capitalist lot would of course reap off great benefits,- it’s a good time to capture some market, which otherwise was ruled by the low cost service providers and freelancers.

The facts are plain now, PayPal Spokesman Dickson Seow’s hope that their company’s 30 add advance notice to Indian customers will enable them to “plan accordingly” is only corporate consolidation to thousands of small service units and freelancers in India. Most of them are left only clueless. It is worth mentioning that most of the small scale service providers are of the opinion that there should have been better regulations to make the money transactions more transparent for tax purposes, not something which restricts flow of Funds completely!

You might also like

RBI Guidelines to PayPal make life hell for IT Service Providers

By: Priyankan Goswami Read time: 6 min