How to Withdraw Paypal Cheque in India

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
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[Source by: SnapHow.com : Web & Computing Tips]

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