Paypal Stopped Personal Payment in India

While sending payment via Paypal, it has various option like Services, Goods and personal payment option.

In personal payment option there is no service charge and it was being misused by many people. Even on the client transaction, people prefer making payment under personal payment option.


Today onwards Paypal has stopped personal payment option for India territory which is a big set back for many. I received 111$ from infolinks 2 days back and paypal has reversed the payment with this note :

Hello Harsh Agrawal,
Your payment of  111.84 has been sent back to the sender of the payment.
We reversed this payment 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 contact the buyer and have him or her resend the payment as follows:  (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, then we have requested that the sender 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.

Atleast Paypal should have reminded about it earlier and started this process from the transaction made from today onwards. For me I need to get in touch with infolinks and 2-3 other sender to reissue the check.

Are you facing any such issue with paypal?


  • Paypal: How to send receive money in India

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Article By
Harsh Agrawal is a blog scientist and a passionate blogger. He is blogging since 2008 & writes about Blogging, SEO, Make money online & tech. His blog, ShoutMeLoud receives 1 million Pageviews/month and have over 700K subscribers.


COMMENTs ( 111 )

  1. says

    hy harsh,

    yesterday I recieve A payment from ucweb but There is Showing in Pending balance i wanted to transfer to my account but i am unable to do it. Can anyone help me plz …….

    when I contact to Paypal i recive this email

    Thank you for choosing PayPal.

    Payments you receive from buyers – anywhere in the world – can be available in your PayPal account more quickly once you become an established seller with PayPal.

    How to become an established seller?

    To become an established seller you need to meet these three requirements:

    -Complete 20 successful transactions without buyer disputes, claims or returns, and

    -Receive a minimum of 200.00 USD in payments for goods and services, and

    -Use PayPal to receive commercial payments (i.e. for goods and services) over a period of at least 60 after the date of the first commercial payment you received.

    Until you meet all of these requirements, payments you receive will be placed in your pending balance for up to 21 days before they become available for transfer to your bank account.

    i don’t Want to Wait 21 days . If anyone have Solution plz help me

  2. Rajarshi manna says


    Can anyone tell me how to withdraw money from payza account to local bank in india?

    Any other alternative payment processor like neteller, perfect money, okpay , bitcoin,,,,,,,,,

    How these work in india?

    How to withdraw from these payment processor to local bank in india/

    Please help me.


    Rajarshi Manna

  3. Krishna Verma says

    Hi Harsh,
    I have a doubt related to paypal. I am currently using personal paypal account. I want to know that how many transactions (and value) are safe with a personal account ? Should I change to business account if I am receiving more that $1000 or so per month ?

  4. Samir says

    Paypal money makes some millions of $ by reversing payments,

    I had 900$ in my account when I request for withdraw and on next day I got the notice that payment have been reversed and I lost 44.65$ in reverse transaction because Paypal funded me at Rs. 49.4 and sold dollar back to me at Rs. 47.12,

    Apart from this I request $936 which result me at something $901, because of reverse transaction I stood at 856.35 again Paypal offer almost 3-4% lower rates compare to market or money booker so If we count that in $825..

    Whats the $936 became $825 with lost of 111$ almost 5772 lost compare to current money booker rate..

    Highly suggest not to use Paypal any more..

  5. Tushar says

    i dont face this problem .. i got many payments form ptc sites to my india paypal account .. while sending there is option of sending for services

    • koushik says

      hello sir please tell that is it possible to us dollar to indian rupee via a personal paypal account to a savings account in SBI.? if it is done then tell me the details procedure .

  6. Sarfaraz Ansari says

    Hello Everybody, I’ve transferred the funds from paypal on 4th March 2010 and today. ie. on 8th March, i got my Money… so i now say that the paypal is working absolutely fine.

  7. Wicked Sunny says

    Thanks Pinaki Da. I have used Xoom in past, but I prefer paypal. The only thing is money will remain stuck there for some time, its fine with me.

    Regarding International bank account – its a big mess. When paypal was not sending payments to India, I have tried that option.

    Eespecially after the 9/11 they became very strict.

    You will have to send your original passport and other documents. Some banks even asked to visit US, just so that they can see who we really are – common Indians or a terrorists?.

    Hopefully the SBI process has become much easier.

    Can anyone provide some technical details?



    • Abbas says

      Yes.. ICICI payments work fine for amounts less then $5000.

      For any transaction amount greater than $3000, it is always advisable to go for a bank transfer. When you do a bank transfer, you can always negotiate the best currency rate with your bank manager, which is not possible with the ICICI a/c, because, they give a fixed rate.

      Plus, the exchange rate they give is never too great nor can you bargain and get a good rate for each remittance. Check out the exchange rate they are offering in that website, and compare it with the current exchange rate… They are offering 80 paisa less for a dollar than the current exchange rate. Thats over 1.7% lost in transaction fees!!!

      And, the card rate of a bank is always higher than the displayed exchange rate. You can avail the card rate only for bank transfers. This mode of ICICI transfer is not actually a wire transfer, but an EFT, meaning, conversion happens even before the amount enters India!

      Plus, ICICI are always known for unreasonable hidden costs!

  8. Abbas says

    A good suggestion to all of you here. The most efficient method of fund withdrawal from paypal is to open a bank account is US. I made several withdrawals to a US bank account in Feb, and they all went fine.

    Oh, I do stay in Chennai. Not is US. Have never been to US in fact :-)

    Yes you can still open a bank account in US as a branch, if you hold an account in India. My suggestion is to go with SBI. If you have an account in SBI, then you can open one in the US, without having to travel there in person. The process is as simple as couriering a few forms to US. The minimum balance is $1000 and they give online banking (view permission only).

    The greatest advantage of having a bank account is US is, you will be saving on withdrawal fees! And there will never be any issues with paypal and US banks!

    When you finally wish to withdraw, you can do a bank transfer to your Indian Bank account!!

    • Kara says

      Hello Abbas,
      This is new! I never knew you could open a bank account in US while being in India. Can you please give the details of the procedure? And is it necessary to have a SBI account? Can one open account with other Indian banks having a branch in the US?

      I am sure your detailed reply will help many of us.
      Thanks in advance

      • Abbas says

        Hi Kara… I too dint know until last year :-)

        I opened our company bank account with SBI, for the only reason that it could be one of the safest and largest banks. With so many banks filing for bankruptcy, we had our doubts to open foreign accounts with any other bank. All I had to do was to fill up a few forms, get them attested from the bank manager (who himself had no clue that this could be done), and courier it to US. In fact, they even supply a cheque book ($100 for a chequebook) for the US account, which means, you can issue cheque payment from US account to Indian account, sitting in India :-)

        Once you courier the docs, they will open your US a/c in 2 weeks, and give you the routing no and A/c no.

        Yes you can open a US account with any Indian bank, as long as they have a branch in US.

      • Abbas says

        Hi Kumar… Yes same option is available with citibank.. but honestly, that is one of the “worst” banks you will ever come across..

        They are not even interested in talking to you unless your monthly transaction is over $100,000

        In fact, they classify $100,000 – $500,000 monthly transaction customers are “small” clients… lol

        Plus, they charge a lot of fees for each transfer and have tonnes of hidden costs. We tried this with citi and finally had to close down the account cos of their hidden costs , which were amount to hundreds of dollars per month!

    • shekhar says

      Hello abbas,
      I saw your comment you could open an account with SBI, I called up their telephonic banking and they say it’s not possible. I would highly appreciate if you can tell me which SBI branch in chennai could we open a US based bank account in particular as I stay in chennai also.

    • Pinaki Ghosh says

      Sunny, I withdrew my PayPal balance using and it came to my bank without hassle. It did cost me, but I was able to withdraw. You can try the same, because there is not much other options available at this time.

      • amit says


        Can you please tell me as if we are allowed to withdraw payment to local banks in India from our Paypal India account. If so then do we need to transfer it to some other person’s name or can we also to self transfer. Please help . Thanks A

        • says

          Hey Amit
          Right now Withdrawing money from Paypal to Indian banks are on hold.. So I will suggest wait for a while until unless we will hear something officially from Paypal team.

          • says

            Amit, you cannot withdraw your PayPal balance via PayPal as of now. However you can withdraw your balance using I have successfully transferred all my PayPal balance via recently. It costs you, but your wait ends. Definitely do it if there is considerable amount of cash lying in PayPal.

          • amit says

            Hi Pinaki,

            I initiated the transfer through xoom on 15th & it is showing status as partner processing. Can you please tell me what this status means & when shall I expect funds.

            Thanks buddy

          • says

            It takes about 3 working days form the time you initiate the withdrawal to the time you receive it in your account. Partner Processing suggests the withdrawal is in the 2nd stage and will take 1 more day to reach you.

      • sansmind says

        Pinaki, Is Xoom safe ? How long does it take to transfer the funds to the bank a/c thru xoom ?

        Is it there any way we can withdraw the paypal balance through Western union Money Transfer ??

        • Pinaki Ghosh says

          Xoom is safe. They have been around for several years and got my money transferred without any hassle. Takes 3 working days.
          No, I don’t know of any way to withdraw your money using Western Union.

          • sansmind says

            I transferred few bucks from PayPal through Xoom to my bank a/c but the tracking results still shows “Partner Processing” from last 3 days. I called Xoom and they said that my transaction cannot be completed and the partner company from india has transferred the process.

            The money got deducted from my PayPal A/c but its still not showing in my bank a/c.

          • Pinaki Ghosh says

            Did you give correct bank info? Incorrect bank info may result in your money getting suspended midway.