The Reserve Bank of India (RBI) has allowed PayPal, the eBay Inc-owned US-based online payment platform, to increase the export-related payments to $3,000 per transaction from the earlier $500.
In March, the central bank had placed a limit of $500 per transaction for merchants in the country. Subsequently, an increase in the transaction amount prompted RBI to lay down guidelines for payment. Anyone using PayPal must add a Permanent Account Number, purpose code and local bank account to the PayPal account in order to continue receiving export-related payments..
The 1998-founded Paypal, headquartered in San Jose, California, described this as a "huge step forward", also for Indian SMEs who can grow their export business through e-commerce. "We're thrilled about the increase in transaction limit," said Paypal India country manager Mayur Patel. "We would like to thank RBI for understanding and being supportive of the needs of SMEs who wish to expand their business through cross-border trade."
The RBI decision will allow several millions of small and medium enterprises to transact with buyers in markets like the US, Europe, and Asia.
"This is exciting news," said Kashyap Vadapalli, Director – Category Management, eBay India. "It's especially so for eBay India merchants and Indian entrepreneurs who want to grow their business through retail exports and sell to millions of eBay's customers globally. It can help these SME's sell higher valued hand-made jewellery, leather products, ethnic Indian clothing and even motor vehicle parts of up to $3000 per transaction to buyers across the globe."