PayPal has blocked personal payments to and from India, while transfers to local banks in the country have been suspended, Anuj Nayar, a PayPal spokesman, wrote in a blog post.
The company is currently working with its business partners and other stakeholders to address questions they have about the service. During this time, customers can still initiate commercial payments to India but merchants cannot withdraw funds in Rupees to local Indian banks, according to the same source.
PayPal has recently explained that its recent service suspension is a response to enquiries local regulators posed, specifically, on whether personal payments constitute as remittance into India.
According to a PayPal spokesman, personal payments to and from India will be suspended for at least a few months. Personal payment senders will need to find another payment method, while local bank withdrawals should be available to customers within the next few days. PayPal will restore money into the accounts of Indian customers who have recently initiated withdrawals and these users will receive reimbursement for any withdrawal fee charges.
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