RBI guidelines for PayPal make no sense
By- Priyankan Goswami
After the nationwide dissatisfaction shown by Indian IT Service providers and freelancers against the RBI’s recent Regulations which led PayPal to declare new rules for Indians, the Government officials and state sponsored analysts are seen making efforts to showcase that this directive is actually good for the people. These pro-RBI campaigners are claiming that the new restrictions will prevent Indians from bringing in black or corrupted money in huge amounts from outside India, such as the Swiss Banks.
The way PayPal works in India is that when an amount is transferred from a different country to an India, the money is first transferred to the PayPal India’s account through SWIFT, which is then further transferred to Individual bank accounts of people using the service. However no bank in India will give a blind eye and simply accept a huge transaction, say one million dollars, to a particular account holder. In all ideal scenario, this will be questioned and to be justified by the account holder. So the measures of ensuring that huge amounts of black money are not brought into India were already present in current banking system and the PayPal stir is completely unnecessary.
In case the Government is suggesting that Indian Banking system is not capable of the above, then it proves the entire Indian Banking system is fraudulent. And the PayPal conflict is only a useless gimmick, as reported in our previous stories RBI Guidelines to PayPal make life hell for IT Service Providers and PayPal’s new rules based on RBI Guidelines : Blow on Indian Freelancers.
Reserve Bank of India & Ministry of Finance killing entrepreneurship
An act which amounts to:
1. Attempt to extort money from citizens of India
2. Violation of fundamental rights to earn livelihood
3. Violation of Directive Principles of Indian Constitution
Please read the RBI terms for Paypal between the (—-) lines and answer my questions as follow:
1. Did RBI or our corrupt governance provide any business or employment opportunities to entrepreneurs who, against all odds, have been independently bringing about the potential across continents?
2. Could RBI or our corrupt governance provide an internationally acceptable online infrastructure for financial transactions or internet which laid concrete on the platform where millions of such entrepreneurs found the sources to earn livelihood?
3. Did RBI or our corrupt governance ensure regular power supply which entrepreneurs need to complete projects in time?
4. How & why RBI or anyone else may claim a right over the interest on the money entrepreneurs earned purely by selling their talent and services… not by selling a substance, product or crop of the nation?
5. Will RBI bear the exceeding transaction fees caused by these rules?
6. Will RBI or local banks pay the money in dollars which entrepreneurs earned from foreign customers?
7. Will RBI guarantee to pay the difference of selling & buying rates of dollars?
8. Why entrepreneurs can not import by spending the dollars which they earned from outside of India?
9. What if entrepreneurs decide to import their food and essential commodities and decline to accept Indian currency? Can you stop it?
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Upcoming changes to PayPal User Agreement for India with effect from 1 March 2011
With effect from 1 March 2011, Paypal Users are required to comply with the requirements set out in the notification of the Reserve Bank of India governing the processing and settlement of export-related receipts facilitated by online payment gateways (“RBI Guidelines”). In order to comply with the RBI Guidelines, Paypal user agreement in India will be amended for the following services as follows:
1. Any balance in and all future payments into your PayPal account may not be used to buy goods or services and must be transferred to your bank account in India within 7 days from the receipt of confirmation from the buyer in respect of the goods or services; and
2. Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction. We seek your understanding as we continue to employ our best efforts to comply with the RBI Guidelines in a timely manner.
I agree with Ashok and I have a question too
Will RBI or Corrupt Indian Government provide jobs to unemployed without taking bribe?
RBI thinks that people spend money in their paypal accounts in shopping which makes it hard to trace and tax the money. This is the reason why PayPal users can’t make money transfers.