Paypal has been a trusted company and has been used by a number of small companies and freelancers across India as its allows them to bypass the tedious and expensive international bank transactions. It was on 6th Feb, that is five days from now that paypal has stopped all the services in India. You are not able to receive, send or withdraw money.

From the official paypal blog, there was updates by Anuj that they had to do the same “We temporarily suspended these services to respond to enquiries from the Indian regulators, specifically questions on whether personal payments constitute remittances into India.”

As on the other side the Indian regulators i.e. Reserve Bank of India say “Providers of cross-border money transfer service need prior authorization from the Reserve Bank under the Payment and Settlement Systems Act, PayPal does not have our authorization.” (Alpana Killawalla, Reserve Bank of India)

There has been a number of softwares companies and freelancer relying on Paypal. Everyone is just worried of what went wrong. How long will the situation last ? Apart from these things, there are few more points to ponder.

• Should we trust private companies because they provide excellent services ?
• If Paypal was not authorized by RBI, were the RBI guys sleeping for so many years ?
• This arises one more question. Should we trust RBI ?