RBI/INDIA fucked you over, not Paypal.

Paypal has to comply with RBI's rules, not the other way around. Get your facts straight before you point fingers.
Mac Reviewed by Mac on . RBI Fucked Indian Paypal users Paypal received a notification from the Reserve Bank of India (RBI) outlining the new requirements for governing the processing and settlement of export-related receipts facilitated by online payment gateways. In order to comply with the RBI guidelines, our user agreement in India will be amended for the following services with effect from 1 March 2011 as follows: Any balance in and all future payments into your PayPal account may not be used to buy goods or services and must be Rating: 5