Indian Citizens are subject to Exchange Control. It need permission for having a foreign bank account. Funds can be sent abroad for approved purposes and parking of funds, in any kind of account needs permission from RBI, see http://www.rbi.org.in/
On the other hand, services like Paypal are being used in India and I do not think anyone is bothering to take approval. In fact, people don't even seem to be aware that there may be a requirement. And the Paypal transactions seem to be small enough, so that they seem to have escaped regulator scanner.
My question is, Is it technically illegal to transfer money into a Paypal account or even to open a Paypal account (if it is to be deemed a bank account), as per current RBI/FEMA guidelines in India?
Those who have started to worry...note that even if it is illegal in India...max. you get is a fine three times the size of transactions plus interest from the date of transaction, under FEMA. It is not a criminal offence under FERA anymore.
2006-12-27 00:20:17 · 5 answers · asked by Sanjay Arora 1 in Business & Finance ➔ Other - Business & Finance
I don't think paypal is considered a bank account. When you pay money to someone's paypal account; you are putting money in paypal's bank account, but paypal makes a record of it that they owe a certain account number so much money. So when you request to have the money sent to your band account or have a check mailed to you, they write you a check for the amount that they owe you. They just provide a service to hold money for people until they redeem their funds.
I think people have been using it to launder money, and many government agencies are looking into it making sure people don't use the service for that. I think they are monitoring how much money gets sent through paypal. If you are receiving $10,000 a month through paypal; you better be paying taxes, or they will take everything away from you.
2006-12-27 00:29:57 · answer #1 · answered by Anonymous · 0⤊ 0⤋
RBI guidelines are not applicable. Each bank has its own schedule of charges. This schedule of charges is a public document so far its customers are concerned and you can ask for the details as a matter of right. Basically, these charges are 1. Cheque book issuance charges; 2. Charges for dishonoured cheques deposited by you; 3. Charges for dishonoured cheques issued by you; 4. Collection charges and out of pocket expenses 5. Charges for not maintaining minimum balance in the account; 6.Charges for any other services, e.g. calling for a credit report on your business contacts etc
2016-03-29 08:05:03 · answer #2 · answered by Michelle 4 · 0⤊ 0⤋
If PayPal permits people in India to join (some countries are not allowed to sign up for PayPal it tell you as you try to sign up)... and if they have a part of PayPal in India as many sites have been doing,.. then they would be considered International and if they have a part in India then they likely are aprroved in India and therefore can be considered a Bank or similar facility of India.
So try to sign up and if you can't because your in India, then PayPal isn't set up in India yet or approved legally in the part of India you are in. Like I said some people can't sign up where they live (either it's not in the forms or they get a message explaining they are not allowed to sign up in their location).
2006-12-27 00:32:10 · answer #3 · answered by sailortinkitty 6 · 0⤊ 0⤋
I know about this organization very much.But if you visit this page it will be nice for you and helpfull.
http://en.wikipedia.org/wiki/PayPal
2006-12-27 00:32:22 · answer #4 · answered by Anonymous · 0⤊ 1⤋
You already know so much.Take precuation so that you are not booked.
2006-12-27 00:32:02 · answer #5 · answered by Anonymous · 0⤊ 1⤋