New York: Breaking News! According to a latest article published on New York Times, it was the Reserve Bank of India (RBI), which forced PayPal to suspend certain services including the personal payments to and from India.

 

The report says that the Reserve Bank of India asked PayPal on January 27 to immediately suspend personal PayPal payments to and from India as well as transfers to local banks in India. PayPal complied with the request the next day.

 

The only concern is that PayPal failed to notify its customers about this problem beforehand, which led to big inconvenience to the millions of PayPal customers in India. IT Professionals, Freelance Writers, Coders and may others rely on PayPal services to receive funds from abroad without big hassles.

 

Thousands of US and Indian companies are badly affected by this unprecedented issue. Many customers lost their money during the process of reconversion/reversal. While some customers got the refund, PayPal refused to reimburse for some other problems, citing technical reasons.

 

According to the NYT, the RBI said that PayPal does not have their authorization under the Payment and Settlement Systems Act, 2008. While it may take a few months to restore the 'personal payment' services, PayPal said that the customers would be able to withdraw their funds to Indian banks within a few days.

 

PayPal also said that only personal payments to and from India are affected and people can still send and receive money, using the "goods" and "services" options under commercial payyment.