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.