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Paypal Stops Personal Payments To and From Indian Users

Today an email from paypal says that it currently stopped all payments to or from india when it is made as a personal payment. So users must do the payments under services or goods. Few months back paypal have increased its transaction fee little higher and that made small business people feel bad. And still people do transaction via services to cut the charges applied by paypal to paypal transactions. So this new policy update from paypal end totally restricts indian paypal account holders to stop their personal payment transactions. Where they wont be able to send or receive any money from their family members or friends.


Your payment of  37 has been sent back to the sender of the payment.

We reversed this payment because we have stopped allowing personal payments to be sent to or from India.

If this was a payment for a purchase of goods or services, and not a personal payment, then you may contact the buyer and have him or her resend the payment as follows:  (a) click the Send Money tab, (b) select “Goods,” and (c) provide a shipping address.

If this payment was a personal payment such as a gift, then we have requested that the sender find another payment method until we restore personal payments to and from India.

We are trying to resolve this issue as quickly as possible and we’re sorry for any inconvenience.

Thank you,

This has some positive and negative feedbacks from the paypal users. There was no announcement from paypal end regarding this new policy update. However, paypal seems working bit fast on solving the issues related to this REVERSAL made by Paypal. Many indian paypal users are now in Negative balance due to this sudden change of policy.

Update: From Digital Point Forum (and its still unconfirmed)

Well as from some source on DP, PayPal didn’t submitted required documents to RBI office which they asked so RBI denied them to use NEFT system until they add it but few people are reporting that funds transfered to account so within next 2-3 days all pending withdrawal will be clear excluding Sunday!

About the Author: Robin C

Security Consultant, Engineer, Technology Enthusiast and Blogger.

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  1. I think Paypal Wants to close their operation in india. We all knows that paypal is biggest and there is not another option, but This doen’s mean they can do any thing to customer. When ever another option available, I will be the first customer to change from paypal. I have also got payment from chitika and donated to one charity organization, Paypal reversed my transaction and my paypal balance is in Negative.
    If They have changed policy, they must notify customer and must not allow transacation, What is meaning of reversing trasaction after 5 days of transaction completed. How we can trust paypal in future that our balance is actually ours?

  2. Hello Admin,

    Thanks for starting this topic!
    Because this really a Horrible thing which paypal put in our life!
    I woke up in morning and open my account for emails! And i see what 3 of my payments has GONE! What the hell is this paypal doing!
    Atleast they should Inform us about this change! So we can manage our payments anywhere else!
    I do Freelancing work and in every hour i am getting notification of reversal!
    Don't know what to do now apart checking emails for reversals!
    If anyone gets information please provide us that would be useful!


  3. Hi @Ashu, you dont have to spam here.. because you get a solid backlink to your blog via Commentators listing in the sidebar 🙂

    So avoid posting links from next time with your comment. Thanks !

  4. Yeah truely agree with you, Paypal should atleast reminded us of the changes if any. I have lost some money as cancellation fees. Paypal is tarring it image. #fail

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