Paypal India’s woes continues. PayPal will stop electronic withdrawal for Indian users from July 29th, 2010. Currently users can request for either an electronic or cheque withdrawal of funds from your PayPal account if you are an India user. This comes just a few weeks after suspending personal payments in India and making PAN cards compulsory.
In accordance with regulatory instructions, we would like to notify you about a change in our withdrawal functionality in India starting on August 1, 2010. At present you can request for either an electronic or cheque withdrawal of funds from your PayPal account if you are an India user.
From July 29, 2010 onwards, you will only be able to request for a cheque withdrawal of funds from your PayPal account.
While we are working hard to restore the electronic withdrawal service, in the meantime, we are bringing this matter to your attention so that you can plan your future withdrawal activities accordingly.
To request for a cheque withdrawal:
- Log into your PayPal account, click on ‘Withdraw’.
- Click on the ‘Request a cheque from PayPal’ link.
- Enter the withdrawal amount and select your mailing address, then click ‘Continue’.
- Click ‘Submit’ to confirm your request.
One good thing is that Paypal will refund $5 fee which users have had to be paid if they were using a cheque withdrawal. Personally, I am fine with this, but some people feel the new policy puts them at disadvantage.
Rahul Bansal of DW notes that foreign currency cheques normally takes 21 days to clear and additional 5-6 days of Postal delays, which means once you request for a cheque, you won’t have the money in hand for at-least a month. If waiting for a long time is not a concern for you, availing cheque withdrawal is anytime better than electronic transfer as I have seen that the exchange rate provided by Paypal is always lesser than what Indian Banks provide.
Update: Paypal offers cheques in local currency [INR], but the cheques are sent via normal post which would take a fortnight at-least to arrive.
What’s your take on the whole issue?