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India Suspended From PayPal For "At Least a Few Months"
More details have come about about what was behind PayPal's decision to suspend personal payments to any user in India, as we discussed on Sunday. In a blog post today, PayPal revealed that payments to India will remain in suspension for at least a few months. Customers in India will be able to pull rupees out of the service into their bank accounts within a few days. The suspension came about when Indian government regulators raised questions about whether PayPal's service was enabling remittances (transfers of money by foreign workers) to Indian citizens. "The problems may have been triggered by a marketing push that promotes PayPal as a way to send money abroad, a source familiar with the matter said. The campaign — which reads 'As low as $1.50 to send $300 to countries like India' — may have caught the attention of Indian regulators, the source said."
"The problem is PayPal wants to do the functions of a bank but does not want to be registered as a bank"
Whoever said that doesn't know what a bank does. It's not about holding money for you (everyone from your mutual fund advisor to escrow services to pre-paid cell phone vendors does that) or enabling financial transactions (any retailer can do that) or enabling currency exchanges (any hotel can do that).
When Paypal says you have $100 in your account, they actually have that money somewhere waiting for you to withdraw.
When a bank says you have $100 in your account, they actually take your money and spend it on champagne, Vegas hotel rooms, politicians, and investments of dubious value. When you go to withdraw it, they borrow $100 from someone else or even create it out of thin air.
That is the difference, and that's why banks face a host of regulations and insurance requirements that Paypal does not.
He who lights his taper at mine, receives light without darkening me.
And don't forget, India was mostly unaffected by our recent economic downturn because of their draconian economic laws.
India was mostly unaffected by the recent economic downturn because you can't lose what you never had.
A Hair Cut in India is 20Rs and I pay the same in US. Going by that the currency exchange should be 1:1. Haha, you are building a long winded response without real merits.