PayPal stops Electronic Fund Transfer to India

A shock for Indian Paypal users- From July 29 onwards, Indian Paypal users will not be able to withdraw money through electronic fund transfer, only cheque withdrawal is possible from your PayPal account.

The strict financial regulations in India are the main hindrance for these transactions. Presently Indian PayPal users are permitted to add fund to PayPal account through credit card only, at the same time the subscribers of other countries can transfer the cash to their account flexibly through Bank transfer, Credit card or Debit card.

To request for a cheque withdrawal

1. Log into your PayPal account, click on ‘Withdraw’.
2. Click on the ‘Request a cheque from PayPal’ link.
3. Enter the withdrawal amount and select your mailing address, then click ‘Continue’.
4. Click ‘Submit’ to confirm your request.

PayPal says “ In order to help you with this change and until further notice, we will refund the $5 USD cheque withdrawal fee to you for cheque withdrawals made on July 29, 2010 onwards. We work tirelessly to resolve this situation as quickly as possible. Means, you need not to pay the fee for cheque request.

Update (July 31 ) : Good news Paypal has resumed the Electronic fund transfer