A lot of PayPal users in India are facing problems in withdrawing money to their bank accounts these days. These are the users who tried to withdraw the money around 27th and 28th Jan or after that. Few days back when I tried to verify my PayPal account then the money got credit into my account within 2 days only. But now almost every Indian PayPal user is facing issue with bank withdrawal.
I tried to withdraw money on 27th Jan (Around $160) but the money is not credited into my bank account till now nor it is reverted back into my PayPal account. PayPal is showing status as “completed”.
The money withdrawal usually takes 5-7 working days to complete the transaction to bank accounts. But it’s almost 12 days now and I am still waiting for the money to be credited into my bank account.
When I contacted the PayPal team, they gave me the following explanation:
Dear Simrandeep Singh,
Thank you for contacting PayPal.
I reviewed your account and I was able to see your withdrawal on Jan 27,
2010 amounting to Rs.7,204.35 INR ($160.52 USD). Please note that
Electronic Transfers to your bank account usually take 5-7 business days
to process. Holidays and weekends are not recognized as business days
for most banking facilities, which may result in a delay in your banking
transactions.The status of your withdrawal is ‘Completed’, which means it has
completed through the PayPal system. Please note:* PayPal has no control over the length of time it takes your bank
to post their credits, and we do not receive confirmation when your
credit has been received by your bank
* Usually, if there is a problem with the transfer completing, it is
rejected back to PayPal and the funds are reversed back into the PayPal
account
* At this time, this transaction has not been rejected back to us.
Therefore, we suggest that you contact your bank and ask to speak with
someone who works with Electronic Funds Transfers. This Department
should be able to verify that your deposit was received.
* If you are unable to locate the deposit at your bank, and the
status of the transaction is still listed as completed, we can initiate
a trace on these funds once 14 business days have passed. In this case,
please contact us and our Customer Service will provide all the
information to initiate the trace procedure.Thanks for sharing your concerns with us and I appreciate the
opportunity to assist you. I’ll be glad to hear from you if you need
clarification as we try our best to give you immediate answers, or
kindly visit www.PayPal.com/101 for more information. Thank you for
choosing PayPal for your online payment needs. We appreciate your
business.Sincerely,
Violeta Joy
PayPal, an eBay Company
They cleared it that PayPal has no control over the length of time it takes your bank to post their credits.
Conclusion : If you are like me who is waiting for the money to be credited into your bank account from PayPal, then the only solution is that you should wait for 14 business days from the date of initialization of payment. After 14 days, contact the PayPal team so that they can initiate a trace on your funds.
UPDATE : You can read my post on How To Withdraw Funds From PayPal To Bank Account In India to withdraw funds to your bank accounts quickly. Its tried and working method.
If you have any other solution, Please share it with us so that other users can take benefit of it 
Simrandeep Singh is the Editor-in-chief of TricksDaddy and a blogger from Chandigarh (India).
He loves to write about WordPress, Freewares, Mobile Phones and Blogging Tips. Apart from Blogging, he loves travelling, photgraphy and cooking.
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Hi,
What’s the original issue between PayPal and RBI? When it’s goint to resolve any ETA?
Hello everyone, happy news— Now RBI has allowed to start withdrawal service. Coming march 3rd (Wednesday) we can use local bank withdrawal service. Pls see the below link http://www.thepaypalblog.com………. Lot of thanks to you paypal!… HAPPPY..INFORM TO EVERYONE..
SEE THE BELOW MAIL…. I got from paypal
We have been diligently working with the RBI and our business
partners to resume Indian bank withdrawals for the thousands
of Indian businesses who depend on PayPal to sell their goods
or services in the global marketplace.
Today, we are happy to announce that the RBI has allowed us
to continue local bank withdrawals for settlements for exports
of goods and services. We are currently making changes to
comply with Indian regulations for settlements for exports of
goods and services, and we anticipate that, as of Wednesday,
March 3rd, customers will be able to use our
bank withdrawal service.
As part of the changes, you will be required to fill out a
new field entitled ‘Export Code’ when you request a withdrawal.
This information is required under the current laws of India in
order to identify the nature of cross-border merchant transactions.
On Monday, March 1st, we will be back in touch with specific
instructions on how you can move your money into your bank account.
Moving forward, the RBI has told us that PayPal needs specific
approvals to allow personal remittances to India, which we
currently do not have. Until we get these approvals, personal
payments into India will remain suspended. However, if you are
an exporter, you will continue to be able to use the PayPal
service for payments of goods and services. In fact, with the
changes we are making to our system, PayPal is now set to be a
more powerful engine for exporters in India. With purpose codes
for export transactions and FIRCs (Foreign Inward Remittance
Certificates), you should now be able to get the export
related benefits you seek.
You can check the PayPal blog for additional updates.
http://www.thepaypalblog.com
We thank you for your business and for your patience during
the past few weeks.
Sincerely,
PayPal
I can help transfer to Indian account from paypal contact me
Recent issues with PayPal withdrawals to Indian Banks & more over payments just randomly being reversed back to the senders will have a deep impact on PayPal’s reputation. It raises so many questions like (THIS MIGHT CONTAIN SPOILERS):
A) Should we trust PayPal in future?
ANS: ABSOLUTELY NO
B) Are they really concerned about our Money?
ANS: ABSOLUTELY NO, After a long period of two weeks we receive an apology letter stating that “We are sorry we goofed up opps!� and stuff like “Your money just got sacked since this is nothing serious to us we are just doing a drill of playing a game with your hard earned money�
C) Is RBI responsible for this?
ANS: UNQUESTIONABLY MAYBE, So, Question is why this is happening in India and nowhere else? Question is why we are being kept behind curtains and dark? Question is why Moneybookers and other Payment systems are working but PayPal is not? you just want to exclude the RBI out of this since they are least concerned with us. Everyone failed here! RBI off course you cant expect them to give you a comforting truth so a comforting lie should suffice you! And PayPal Ow man no shit a multinational company failing to inform and notify of an issue of this magnitude. That was an AWESOME combination of pure frustrating, destroying trust & spreading chaos.
D) So what does PayPal tell us now?
ANS: “We are sorry, but your valuable to us so please give us another opportunity to goof up and play some more engaging games with your money†and “We just love to make more profits by giving you a pathetic exchange rateâ€
D) What now?
ANS: DTA (Don’t Trust Anyone) Get your sleeves up against them and find your own ways to get paid over any other medium that serves better, communicates better and keep them in plenty. If one fails other should work out.
Ive let all my clients know about this issue and advised them (in advance unlike PayPal) to switch over to some other Payment system which is reliable, responsible and does the main thing “ACTION†at PAR. The truth will probably be dead and berried RIP about what happened because the shame and disgust they bring upon themselves is apocalyptic now.
Appeal and Request to All
Quit PayPal. Join Moneybookers.
Moneybookers is cheaper than PayPal.
Money transfers from Moneybookers is quick and swift.
Yes, they use the SWIFT method, that is, they wire the money to your local bank, instead of using the NEFT method of PayPal.
Moneybookers and RBI have no problems with eachother.
Customer Care of Moneybookers is good. They are prompt and satisfactorily reply to your queries.
Moneybookers is organised, authentic, systematic and very professional.
You might have one question in your mind that the world, all the webstores, all my clients use PayPal, so how can I use moneybookers.
The answer is that you move to moneybookers, tell your friends to do the same. If all flock to MB, then rest will follow… your webstores, clients and the world.
Quit PayPal. Join Moneybookers.
Use this link and give me some credit
https://www.moneybookers.com/app/?rid=15325439
God Bless You!
… and save you from PayPal
Paypal just refunded my bank transfer amount. I’m very happy and thanks to everyone in this board who provided me the much needed support at the time of distress.
Hi All
Has anyone initiated any test withdrawal, if so plz do let us know. I did a withdrawal of 10USD y’day.
Lets see if we are able to see our money or not
Yeah do let us know about this.
I received the money today in my Bank.
Withdrawal Initiated : 05-03-2010
Acc. Credited : 08-03-2010
Bank : IDBI Bank
But the exchange rate is pathetic just Rs43.94.
Thanks for updating us Vikram
hello
I also got my money in my local bank account today.
thanks to all.
That’s great news
May I know how much money did you withdraw and when you did the withdrawal ?
I withdraw $600 and withdrawl on 4th March and I got on 8th March.
Withdrew approx. $200 on March 5. Got funds in my DCB acct on March 8.
I received the money in ICICI on 8th March, for my test transaction initiated on 4th March.
The exchange rate was 44.3917
You got better exchange rate than Vikram.
Thanks for your comment here
paypal is trustable or not
It’s amazing. I withdrew again, this time a larger of $500. The withdrawal, which I made on 10th early morning, to my utter disbelief, got completed on 11th late evening itself, and I had the money in the bank!
Is it that the bigger the amount, the sooner it reaches your account!!
Paypal is back with its same old problem… u cannot withdraw funds to bank fro august 1 2010
Paypal will stop Electronic Fund Transfer to india from 29 July 2010.
and cheque is not cumming properly on addresses.
to: Simrandeep
Can you tell me if you were able to get your funds? I’m having the same problem and I still haven’t seen the money come back to my paypal account or come into my bank account.
I can easily withdraw money to my bank account from PayPal. I’m not facing any problem.
Hey, i’m from Romania and I’m facing the same issue. I did a withdrawal on February 5th of $150, not much, but I needed them quickly. It usually takes 2-3 business day to clear out, but not even now (after 14 days) I don’t see them in my bank account.
I did another withdrawal of $200 on February 11th (friday) and it got to me on February 14th (monday), but the other one never reached me ..
My bank says that they don’t see anything on their servers, and Paypal is sending me email templates ..
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