PayPal puts service in India on hold

8 Feb 2010

Online payment service provider PayPal has temporarily suspended some of its services in India, and is reversing funds requested through PayPal India, reports have said.

“Personal payments to and from India and transfers to local banks in India have been suspended” as the company works with business partners and stakeholders “to address questions they have about the service”, said Anjul Nayar, a PayPal spokesperson from the communications team, in a blog post.

Nayar wrote that customers can still make commercial payments to India, but merchants will be unable to “withdraw funds in rupees to local Indian banks”. The suspension took effect on 28 January, the Associated Press reported.

In the blog Pluggd.In, which focuses on start-ups, writer “manish” posted last Friday about an e-mail from PayPal saying “funds requested through PayPal India are being reversed to their senders, and users have no access to them”.

Nayar said the company is trying to resolve the situation as soon as possible, and is “really sorry” for the inconvenience caused to its customers in India and worldwide.