Legal Question in Banking Law in India

Hi,

1. Are payments made through Paypal India billed as foreign exchange payment or local payment?

2. Paypal India is regulated and approved by RBI. PayPal says that there is no maximum ceiling limit of sending payments outward using credit card (business payment)

However, RBI says that there would be a maximum 10,000$ ceiling to use the credit card per year.

3. Is it allowed to use paypal to make business payments upwards of 100,000$ in a year ?


Asked on 3/05/14, 5:47 am

2 Answers from Attorneys
anuradha Dixit +9312411481 dixitlawfirm

paypal is definetely governed by RBI guidelines as far as India is concerned and the guidelines laid down by RBI will prevail. pay pal also is in conformity with RBI guidelines.

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Answered on 3/05/14, 8:46 am
Fca Prashant Chavan Expert Edge LLP

24.03.2014

Dear Sir / Madam,

You are required to adhere to all RBI directives and guidelines issued from time to time, for making remittances from your A/c to any other party located outside the country. To the best of my knowledge the maximum limit for ICC/IBC is restricted to US Dollars 10,000 per year.

I recommend you obtain pre-sanctioned limits from RBI for outward remittances in excess of US $ 10,000/- per year.

Regards,

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Answered on 3/23/14, 9:31 pm


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