Why does PayPal face legal and regulatory hurdles in India compared to 2Checkout?
Payments
Asked by Question Bot07/Apr/20131 answer
1 Answer
F
Faisal Khan
Answered 07/Apr/2013
Indian laws are very strict when payments 'outside' of India have to be made in foreign currencies (eg: US Dollars). 2CO is an inward remittance. Your balance is held by 2CO, until a threshold is reached and then the money is wired to your account. 2CO does not make payments on your behalf, so consider it a one-way street.
PayPal, whilst is a two-way street. not only are they tied directly to your bank account (for which purpose they have to do reporting to the RBI - Reserve Bank of India), any payments made out of the PayPal, also needs to be reported and this is where the issue lies with the Indian Government (aka RBI) and PayPal. Its a local law / reporting issue AFAIK.
PayPal, whilst is a two-way street. not only are they tied directly to your bank account (for which purpose they have to do reporting to the RBI - Reserve Bank of India), any payments made out of the PayPal, also needs to be reported and this is where the issue lies with the Indian Government (aka RBI) and PayPal. Its a local law / reporting issue AFAIK.