RBI increases transaction value limit for PSPs to USD 10,000

According to the notification, Indian users can now receive up to USD 10,000 per transaction via online payment services like PayPal. However, these services still can’t operate as a wallet i.e. money received cannot be used to make payments.

The other guidelines for online payment gateway service providers remain the same. These include:

• Authorised Dealer Category- l banks are allowed to offer repatriation of export related remittances by entering into arrangements with online payment gateways, after carrying out due diligence
• This facility shall only be available for export of goods and services of value not exceeding USD 10,000.
• The banks will open a NOSTRO collection account for receipt of the export related payments:
• Exporters will have to open an account with the online payment gateway, but no funds are allowed to be retained in such accounts.
• Repatriation of funds representing export proceeds to India for credit to the exporters’ account, in no case, later than seven days from the date of credit to the NOSTRO collection account.
• The bank will have to ensure that purpose codes are reported to the RBI.
• Resolution of all payment related complaints of exporters in India shall remain the responsibility of the online payment gateway.

PayPal received an approval for domestic payments in India in October 2012.