In a pathbreaking development for merchants exporting their products through PayPal has been notified by the Reserve Bank of India (RBI) to increase in transaction limit with immediate effect . After this decision of RBI, PayPal merchants in India can receive export-related payments for goods and services into their PayPal account up to USD 3000 per transaction (raised from USD 500 per transaction). This is a huge step forward for PayPal and for Indian SMEs who can grow their export business through e-commerce by tapping PayPal’s 100 million active users in 190 markets across the globe right from the U.S. to the U.K. to Australia.
In fact, it could be termed as boon for PayPal including Indian SMEs, who can grow their export business through e-commerce by tapping our 100 million active users in 190 markets across the globe right from the U.S. to the U.K. to Australia. Expressing his thought on this positive attitude in redressal of the issue Mayur Patel, India Country Manager, PayPal said “We’re thrilled about the increase in transaction limit and would like to thank the Reserve Bank of India (RBI) for understanding and being supportive of the needs of SMEs who wish to expand their business through cross-border trade.”
Over the past few months, PayPal has been receiving feedback from the merchants in India and shared it with the RBI. Responding on the same in positive manner, RBI has agreed to increase the transaction limit to better enable entrepreneurs and small and medium sized businesses to conduct cross-border trade. Speaking on the development, one of the OSAI (Online Sellers Alliance and Interaction) member said “Definitely this is great news for the merchants selling on PayPal, now we will have extended opportunity to close more overseas transactions. However at the same time we (Merchants) are having some issues of the PAN (Permanent Account Number) with PayPal, however, it is early to talk about this as I did not not go through the copy of the revised RBI guidelines yet”.
With this positive development in attitude of RBI in addressing the merchants issue is really appreciable. At the same time this also shows the promptness of PayPal to bring forth the mercahnt’s issue selling on PayPal platform. Certainly the decision would provide leverage to the merchants and PayPal as well. This decision of RBI signifies that the breakthrough in other deadlocks for creating overall conducive digital ecosystem in the country can also be expected sooner than the later.