Paypal india Outage problem - Money not getting transferred to bank Accounts

We were just alerted that PayPal India is experiencing some challenges and stopped allowing payments to be sent to or from India. Funds requested through PayPal India are being reversed to their senders, and users have no access to them. PayPal has yet to share with us an estimated time for resolution. Excerpts from a Paypal Email:



If you sent the payment with a bank account, the funds will be returned to your PayPal balance. If you paid with a credit card, the amount will be credited back to your card.

We returned the payment to you because we have stopped allowing personal payments to be sent to or from India.

If this was a payment for a purchase of goods or services, and not a personal payment, then you may resend the payment to the seller by following these steps on the PayPal website: (a) click the Send Money tab, (b) select “Goods,” and (c) provide a shipping address.

If this payment was a personal payment, such as a gift to a friend or family member, then we request that you find another payment method until we restore personal payments to and from India.

We are trying to resolve this issue as quickly as possible and we’re sorry for any inconvenience.

Thank you,



  1. Recent issues with PayPal withdrawals to Indian Banks & more over payments just randomly being reversed back to the senders will have a deep impact on PayPal's reputation. It raises so many questions like (THIS MIGHT CONTAIN SPOILERS):

    A) Should we trust PayPal in future?

    B) Are they really concerned about our Money?
    ANS: ABSOLUTELY NO, After a long period of two weeks we receive an apology letter stating that “We are sorry we goofed up opps!”? and stuff like “Your money just got sacked since this is nothing serious to us we are just doing a drill of playing a game with your hard earned money”?

    C) Is RBI responsible for this?
    ANS: UNQUESTIONABLY MAYBE, So, Question is why this is happening in India and nowhere else? Question is why we are being kept behind curtains and dark? Question is why Moneybookers and other Payment systems are working but PayPal is not? you just want to exclude the RBI out of this since they are least concerned with us. Everyone failed here! RBI off course you cant expect them to give you a comforting truth so a comforting lie should suffice you! And PayPal Ow man no shit a multinational company failing to inform and notify of an issue of this magnitude. That was an AWESOME combination of purely frustrating, destroying & spreading chaos.

    D) So what does PayPal tell us now?
    ANS: “We are sorry, but your valuable to us so please give us another opportunity to goof up and play some more engaging games with your money” and “We just love to make more profits by giving you a pathetic exchange rate”

    D) What now?
    ANS: DTA (Don’t Trust Anyone) Get your sleeves up against them and find your own ways to get paid over any other medium that serves better, communicates better and keep them in plenty. If one fails other should work out.

    Ive let all my clients know about this issue and advised them (in advance unlike PayPal) to switch over to some other Payment system which is reliable, responsible and does the main thing “ACTION” at PAR. The truth will probably be dead and berried RIP about what happened because the shame and disgust they bring upon themselves is apocalyptic now.

  2. Dear Friend,

    Anger and agony is understood and accpeted !

    Few things I would like to bring to your kind attention:

    1. No one in this worls is perfect. Imperfection maketh the world instead a better place. Said but true.
    2. It's good to have alternatives and as a thoughtful businessman, you will never have all your eggs in one basket.
    3. Anyone can be trapped in situation where he / she does not have a control. Paypal may have been in such a situation as well.
    4. Nothing is immportal, not even the idea of having a brand or big company as cabable of doing all things right all the times.

    So in all one can learn the lessons for sure. I have just come to learn from paypal that they will resume their services; at the bank withdrawls by March 3rd.
    Other than that, Mr, Irani and his team was helpful in getting some issues resolved like, they increased the withdrawl limit for the month so that we could withdraw the blocked funds via checks this in Feb.
    All in all it was not that bad a situation if you were proactive ourselves as well.

    At last no hatered or malice towards anyone.

  3. This comment has been removed by the author.


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