14 Feb 2010, 0655 hrs IST,
NEW DELHI: Online money transfer service provider
Pay-Pal has been asked by RBI to stop its operation in India.
RBI spokesperson said that according to regulations,
a company needs to be registered with RBI to offer money
transfer services inside the country and as PayPal had not
registered, it was asked to close down its operations
in providing money transfer services here. RBI spokesperson,
however, said PayPal can resume operations once it secures
registration with RBI.
This has caused a lot of inconvenience to India-based users
as they were caught unawares . In a blog message, the company’s
spokesperson said that personal payments to and from India will
be suspended for at least a few months until the company fully
resolves all licensing issues with the banking regulator.
The US based money transfer company is being used by many Indians
to transfer funds from outside India. After receiving the money
in one’s account with PayPal, a recipient transfers
it to his bank account.
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