The PayPal India Transaction Holdup Continues

The PayPal India Transaction Holdup Continues
10 February 2010
EventHorizon1984

PayPal has not been forthcoming about specifically why PayPal "has currently suspended P2P (person-to-person) transfers to and from PayPal India accounts".  The statement from PayPal spokesman Anuj Nayar, "We temporarily suspended these services to respond to enquiries from the Indian regulators" never answered the question why was it necessary to suspend services to answer questions.

Today The New York Times published this statement.

India's Central Bank Stops Some PayPal Services
The New York Times
Heather Timmons and Claire Cain Miller
February 10, 2010

"The Reserve Bank of India said it asked the company on Jan. 27 to immediately suspend PayPal payments to and from India as well as transfers to local banks in India. PayPal said it complied with the request the next day."

Indicating the Reserve Bank of India (RBI) "asked" PayPal to suspend payments.  Which is 'all well and good' save for this part of the article.

India's Central Bank Stops Some PayPal Services
The New York Times
Heather Timmons and Claire Cain Miller
February 10, 2010

"“Providers of cross-border money transfer service need prior authorization from the Reserve Bank under the Payment and Settlement Systems Act,” a spokeswoman for the Reserve Bank of India, Alpana Killawalla, said in an e-mailed response to questions. “PayPal does not have our authorization.”

The act, adopted in August 2008, regulates payment and settlement methods in India."

When a business fails to comply with the law, it is the fault of the business. Not the regulation.

Apparently the answer to why the suspensions occurred is PayPal's papers are not in order.

Since "August 2008"??

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See Also The PayPal India Transaction Holdup

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"Sometimes the only thing more dangerous than a question is an answer."
Rule of Acquisition #208

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