It is common knowledge that Banks are trusted public organizations, where their customer confidence is paramount. Complete transparency should prevail in the activities of a Bank – it being the first source for the public to carry out their financial transactions, day in and day out, without an iota of doubt.

While this thumb rule is applicable to Banks of all countries, a Bank of International fame like PayPal, crossing national barriers on the Internet, should be of unimpeachable integrity. It is most unfortunate that PayPal, which has millions of customers all over the world, has failed miserably in this regard.

What is so mind-boggling for Indian customers of PayPal is – it did not bother to give any prior notice that the personal withdrawal facility for Indian customers will not be available any more. This is a big jolt for the unwary customers, who came to know of it only when they clicked “withdrawal” at the Bank’s site.

Is it not breach of trust? Can any public organization afford to act in such a way? PayPal made public the difficulties the Bank is facing, with Indian law making authorities, only after the damage is already done. Here also writers of their blog were evasive in describing the “problem” they are facing “is likely to continue for few months”. One can imagine how an affected customer will feel.

As of today, Farhad Irani, writes in PayPal’s blog, under the caption “Resuming local bank withdrawals to India” that they have made some “progress”. See his own words –

“I’m pleased to tell you that the RBI has now allowed us to resume bank withdrawals for settlements for exports of goods and services. We are currently making changes to comply with Indian regulations for settlements for exports of goods and services, and we anticipate that as of Wednesday, March 3rd, we will be able to resume the bank withdrawal service. As part of the changes, you will be required to fill out a new field entitled ‘Export Code’ when you request a withdrawal. This information is required under the current laws of India in order to identify the nature of cross-border merchant transactions. On Monday, March 1st, we will be back in touch with specific instructions on how you can move your money into your bank account. I will be posting another blog then.”

As regards personal withdrawals it is still a big zero progress. Note his words:

Moving forward, the RBI has told us that PayPal needs specific approvals to allow personal inward remittances to India, which we currently do not have. Until we get these approvals, personal payments into India will remain suspended.”

There are lot of Indians engaged in rendering online services in their individual capacity and not as a firm. For example, there are many Indian writers providing services required by service buyers online. They derive their remuneration through PayPal – as being the first choice of millions.

Now because of this unfair commercial practice and bias shown on Indian customers by PayPal, all of a sudden and without prior notice, they are left high and dry. There is no clarity in what PayPal is saying through their official blog, as to when and how this stalemate is going to be resolved by this popular Bank of Internet.

This is unbecoming for the prestige of PayPal to prolong this hardship unduly. It is fervently hoped by one and all that PayPal will raise to the occasion in making amends to the injustice caused to Indian customers, sooner than later.