Anuj posted this on the PayPal blog
Hi blog readers, it’s Anuj from the communications team here.
I’m writing to let you know that personal payments to and from India and transfers to local banks in India have been suspended while we work with our business partners and other stakeholders to address questions they have about the service.
During this time, customers can still make commercial payments to India but merchants cannot withdraw funds in Rupees to local Indian banks.
We’re trying to resolve the situation as quickly as possible and we’re really sorry for the inconvenience that this may cause our customers in India and around the world.
I’ll update the blog as soon as we have more information to share.
Anuj
There is no eloborations as to why this steps been taken. We expect some clarity in the coming weeks. Paypal is owned by online auctions giant eBay.
