Paypal offers explanation for suspension of India payments

Paypal abruptly blocked personal payments to and from India earlier this week. People who attempted to send such payments had them reversed. The company blames India, who it says began questioning whether the payments could be considered remittance into the country following a change in licensing rules. Neither Paypal nor India’s government has given any further details on the issue.

Remittance refers to payments sent by immigrants to family back in their home country. Such payments play a large role in the economies of many countries, including India.

“We’re working with the regulators and our bank processing partners in India to get this resolved as quickly as we can. We realize that this is causing considerable inconvenience to our customers and I want to reassure you that this is a top priority for the leadership at PayPal,” the company said on their blog.

Paypal says personal payments may be suspended for months as they work out the red tape with India. Payments made for goods and services will continue to be accepted and processed.

Read [PayPal Blog]