Internet Entrepreneurs of India's Petition to RBI (The RBI / PayPal issue of $500)

[ankeshhimesh]

We understand that RBI is interested in keeping illegal foreign flow of money in check - especially because it can help terrorists route money for their nefarious uses. But their latest issue with PayPal affects a lot of legitimate and honest internet entrepreneurs and small business owners.
We don't mind when they demand that all of the funds from PayPal has to be transferred to an Indian bank within 7 days. Because we understand that RBI has more control over banks than it has over PayPal which is a non-banking financial company in India.
But when RBI has rules in place that makes PayPal restrict the transaction size to under $500 - that hurts us a lot.
That means:

• we face problems while selling our services as freelance writers / developers / designers / artists / musicians
• we face problems while providing consulation services to clients outside India unless our consultation invoice is less than $500
• we can't sell softwares and other digital products if their price is over $500
• we face problems while selling high end and luxury products like jewelry and electronics and sarees
• we face problems while selling collectible items like rare stamps or coins because their prices are often over $500
• we face problems while selling to other businesses because B2B sales often go over $500

This just restricts the flow of legitimate foreign remittance to India. And hurts Indians who try to do business online.
And so we are asking for your support. Please fill out the petition form below. And we will send it over to RBI. If we can make enough noise, maybe we can get them to re-evaluate this decision - and make new rules and regulations keeping us small business owners and internet entrepreneurs in mind.
We will make sure that RBI receives this petition's signatures. And we will also connect with journalists and bloggers and share your stories / connect them with you - so that they can write about this issue and make more noise. And get RBI to re-evaluate things before March 1st.

http://ieoi.in/

ankeshhimesh Reviewed by ankeshhimesh on 11th Apr 2011. Internet Entrepreneurs of India's Petition to RBI (The RBI / PayPal issue of $500) We understand that RBI is interested in keeping illegal foreign flow of money in check - especially because it can help terrorists route money for their nefarious uses. But their latest issue with PayPal affects a lot of legitimate and honest internet entrepreneurs and small business owners. We don't mind when they demand that all of the funds from PayPal has to be transferred to an Indian bank within 7 days. Because we understand that RBI has more control over banks than it has over Rating: 5

[iMage]

Ya thts great for those running legit business online,but all you find here is cashwhore uploaders (being the illegal aspect they are against lol). Oh and if you look at the date at the end of that instead of just copy/pasting its says "before March 1st" lol

[Warezgod]

This may be the reason that they have put hold on this new rule.....

[kundurocks]

PayPal is fucking with us Indians. I recently got paid by a client of mine and PayPal had to butt in to ask questions: "WHY WAS THE FREAKING TRANSACTION MADE?"

I mean, the guy paid me the money for some Services and both of us were good. But NO! PayPal had a fucking problem. They put a hold on my cash and are not replying! I mean WTF is going on?

[assr]

PayPal is fucking with us Indians. I recently got paid by a client of mine and PayPal had to butt in to ask questions: "WHY WAS THE FREAKING TRANSACTION MADE?"

I mean, the guy paid me the money for some Services and both of us were good. But NO! PayPal had a fucking problem. They put a hold on my cash and are not replying! I mean WTF is going on?

You can't help it.

[eLight]

Moved this to the correct section and unlocked

[Jesse]

Can you not just upgrade your account to bypass some limits? If you're an entrepreneur you should have an upgraded account anyway.

[BlaZe]

Can you not just upgrade your account to bypass some limits? If you're an entrepreneur you should have an upgraded account anyway.

Having an upgraded account is no solution. I have a full approved (rather legit) account with my CC & Bank Accounts linked.

Still Paypal has imposed those restrictions

[Jesse]

Premier account or just verified?

[rahuldas14]

I think you are making a mistake. RBI NEVER RESTRICTED THE TRANSACTION LIMIT. It was done by paypal to avoid some responsibilities. When making a transaction of a big amount there are some questions and formalities that is needed to be answered and done. So to avoid such an issue Paypal restricted it to 500$.
So I would suggest we send the petition to the Paypal.