ns3 - services to respond to enquiries from the Indian...

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Stephanie Schaeberle PayPal in India: A Lesson in Complications of Cross-Boarder Transactions PayPal is one of the largest online money transfer systems across the globe expanding on every continent. Early this week, the firm announced that it would suspend personal payments for anywhere up to a few months because of some issues they have had with the system. The issue is said to revolve around the Payment and Settlement Act, which states that any money transfer scheme must be authorized by the Indian authorities. The act was put in place back in August 2008. Not only are individuals using the system to transfer money but also many small businesses have switched to PayPal due to its effective and simple way of transferring funds. Many people blogged about their frustrations due to money loss in transactions recently resulting from fees and inability to transfer funds into local banks during the suspension. "We temporarily suspended these
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Unformatted text preview: services to respond to enquiries from the Indian regulators, specifically questions on whether personal payments constitute remittances into India," (New York Times) Mostly, the governments concern is about the intermediaries like PayPal customers, and why they choose to use this service. They fear that freelancers who do not pay income taxes for income earned abroad are using this system to evade government issued taxes. There is also talk of financiers of terrorists in India using the system to transfer money to these groups. The company could not give figures for the size of its business in India, which is believed to be relatively small. However, PayPal spokesman Anuj Nayar told the BBC that India was a "fast-growing market". (BBC News) http://www.nytimes.com/external/idg/2010/02/11/11idg-india-says-paypal-not-authorized-for-money-transfer-56897.html http://news.bbc.co.uk/2/hi/south_asia/8511553.stm...
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