PayPal India Farhad Irani Restores Business Bank Withdrawls But Hold On Personal Funds Remain
28 February 2010
Continuing the trend of terse press releases, Farhad Irani "Head of PayPal Asia Pacific" stated February 26th on the PayPal Blog that "bank withdrawals for settlements for exports of goods and services" are anticipated to resume on March 3rd.
The small catch for India businesses is this new PayPal (an eBay company) requirement: "you will be required to fill out a new field entitled ‘Export Code’ when you request a withdrawal".
Predictably PayPal provided no details on getting an "Export Code", but Farhad Irani promises that on March 1st he will "be back in touch with specific instructions on how you can move your money into your bank account"
An India business can wait and see what gems Farhad Irani releases from the PayPal vaults, or perhaps they could take the time to read the PluGGd.IN article PayPal Resumes Local Withdrawls to Indian Banks, Here is how to get Export Code, and find the section titled "How do I obtain IE Code or FIRC?". Or see the Techie Buzz article Import Export Code (IEC) For PayPal India Payment Withdrawals and view the "Useful Links" section.
At this point one should wonder what PayPal has NOT said about this self-inflicted problem.
Consider the spin released by individuals with no stated relationship to PayPal that 'only personal accounts were affected' beginning 27 January 2010. And quotes from terse PayPal Blog public relations releases.
- "I’m writing to let you know that personal payments to and from India and transfers to local banks in India have been suspended" Anuj Nayar, PayPal spokesman, 6 February 2010.
- "Only personal payments should have been reversed." Anuj Nayar, PayPal spokesman, 9 February 2010.
- "We were hoping that our merchant customers would be able to start withdrawing their funds at their local bank by today, but it looks like this will still take some more time." Farhad Irani, Head of PayPal Asia Pacific, 14 February 2010
- "thousands of Indian businesses who use PayPal" Farhad Irani, Head of PayPal Asia Pacific, 26 February 2010
Interesting how according to PayPal, business affected went from essentially none to thousands.
Should be very interesting to see what gets extracted from PayPal in the months to come.
Meanwhile we'll leave you with these gems from enthusiastic India PayPal blogger Amit Sinha of Little About:
- "resumption of service of PayPal, acclaimed e-commerce business allowing payments and money transfers to be made through the Internet and one of the greatest means of communications of Indians overseas."
- "millions of Indians have had a sigh of relief"
Apologies for the "transaction" typo in previous articles.
- PayPal India Service Hold Explained: 'We Don't Need No Stinking License'
- The PayPal India Suspended Transaction Services and Farhad Irani
- The PayPal India Transaction Holdup Continues
- The PayPal India Transaction Holdup
"I never said it. Honest" ... "For a while, out of childish pique, I wouldn't utter the phrase, even when asked to. But I've gotten over that. So, for the record, here it goes: 'Billions and billions.'"
Hi. It is Farhad Irani again with a progress update. We have been diligently working with the RBI and our business partners to resume Indian bank withdrawals for the thousands of Indian businesses who use PayPal to sell their goods or services in the global marketplace.
I’m pleased to tell you that the RBI has now allowed us to resume bank withdrawals for settlements for exports of goods and services. We are currently making changes to comply with Indian regulations for settlements for exports of goods and services, and we anticipate that as of Wednesday, March 3rd, we will be able to resume the bank withdrawal service. As part of the changes, you will be required to fill out a new field entitled ‘Export Code’ when you request a withdrawal. This information is required under the current laws of India in order to identify the nature of cross-border merchant transactions. On Monday, March 1st, we will be back in touch with specific instructions on how you can move your money into your bank account. I will be posting another blog then.
I’d like to thank the RBI for working with us to get this addressed. We know this is an inconvenience to you and we appreciate your patience.
Moving forward, the RBI has told us that PayPal needs specific approvals to allow personal inward remittances to India, which we currently do not have. Until we get these approvals, personal payments into India will remain suspended. However, if you are an exporter, you will continue to be able to use the PayPal service for payments of goods and services. In fact, with the changes we are making to our system, PayPal is now set to be a more powerful engine for exporters in India. With purpose codes for export transactions and FIRCs (Foreign Inward Remittance Certificates), you should now be able to get the export related benefits you seek.
We know the past few weeks have been difficult and I would like to assure you that we have been working tirelessly to resolve the situation and restore our service. PayPal’s highest priority is to always ensure we comply with all applicable regulations everywhere we do business around the world.
Going forward, you can expect the same reliability from PayPal that you have enjoyed for all these years. I would like to thank you all for sticking with us and assure you of our best services going forward.