How to Withdraw Paypal Cheque in India – Details
A serious blow to Paypal users in India. In accordance with RBI rules and regulations on international money transfer, Paypal was forced to shut down its electronic fund transfer functionality in India starting on August 1, 2010. From July 29, 2010 onwards, you will only be able to request for a cheque withdrawal of funds from your PayPal account.
How to Request a Check from PayPal :
- Log into your PayPal account, click on ‘Withdraw’.
- Click on the ‘Request a cheque from PayPal’ link.
- Enter the withdrawal amount and select your mailing address, then click ‘Continue’.
- Click ‘Submit’ to confirm your request.
Downsides and Things to Remember while Withdrawing Paypal Cheque in India
# Denomination – Although I have never used the cheque withdraw facility, people ask whether the cheque will be in INR or USD ?. Well using the Request a check from PayPal option, Paypal converts all your money to your Local Currency ie Indian Rupees and sends you as a paper check.
# Processing Charges – Previously Paypal charged 5$ as processing fees. But from now on PayPal is not charging $5 because as any good corporate house, it’s not wise to charge your customer for an option when you are not giving them alternative.
# Time – Foreign currency checks generally takes 21 days to clear! Also added is 5-7 days time in postal delay. The bad thing is that they send the cheque via Post. And not like Adsense does via Blue Dart’s secured delivery. So this might create problems because one can’t trust postal services in India much. (Atleast I never got anything in time)
# Bank Fees – Banks do charge for converting $Dollar cheques to local currency conversion. But since Paypal sends the cheque in INR (unconfirmed) there may not be any fees charged. You also save the 5$ for the time being.
Note: Paypal used to charge some money while converting to INR in Electronic Transfer too. Till date I have seen that if the dollar rate if Rs47, Paypal converted at Rs45 as the conversion rate. So this might still be applicable to cheque withdrawals too.
# When will EFT be Back – No one can say. This is not the first time Paypal faced issues with RBI India. Seems that this time it may be permanent. And Requesting a check from PayPal may be the only option to get your hard earned money.
We will back with some more updates on the issue… Please leave your feedback or any update you know of.
Also See : Get Email Alerts when Blue Dart Adsense Shipments are Dispatched
3 Responses »
Sonia : Hi, A new fact about Pay Pal : I applied for a charity account with Pay pal because its free and supported by vbulletin software for payment subscription, I have all the documents like NGO Registration certificate, Memorandum of Society, Society PAN card, and the Bank details , bank details were verified by the Pay Pal by depositing amount of Rs. 2 and 40 paisa, after submitting all the document as per said in their website and in their emails, they denied me for the account, just because they have no tie-up with India regarding charity account, what the hell is this, why the pay pal people should not mention at the time sign up process. I have wasted around 1000/- rs in doing fax to pay pal and after 4-5 days they denied. Don't apply for a charity account with pay pal if you are living in India. Just wastage of time and money.
Debajyoti Das : @Sonia: Thanks for sharing your experiance ...
Alok : Hi, I'm Alok from Bangalore, found this post through Google. Could you tell me how the banking authorities will know our account details (to deposit the cheque) if our account is in a different bank. Paypal has sent me a cheque payable only at Citibank branches, but I have no Citibank account. Would they (citibank) ask for details of my account in a different bank or would they just refuse to accept the cheque. Thank you.
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