Update: Within an hour of writing this, PayPal seems to have notified the Indian users about the changes. Here is the Mail I just recd. from PayPal.
Unfortunately, Indian users have to put up this sh** (Pardon my language, but that’s what PayPal account has become now) called PayPal for lack of an alternative. I mean its high time something is done about it.
Coming back to the new development – Paypal now forces Funds Withdrawal on Indian users. What that means is – you cannot park your money in PayPal account anymore. Whatever balance a user has in his paypal account on that particular day will be automatically be withdrawn / transferred to the bank account attached with your paypal.
Although, PayPal had put restrictions on using the Account Balance to make payments, a user was never forced to withdraw to his Bank account and he could do it at his own convenience (probably for getting higher USD vs Rupee exchange rates etc.). But with this new change, whether you like it or not, the remaining balance will be withdrawn/transferred on daily basis.
And, unlike previously, PayPal has not even bothered to send Indian users a mail informing them about this change. I came to know about it only because I got following mail from Paypal, AFTER the money was automatically withdrawn!
Prima Facie, I though it must be a default option that PayPal might have changed for user benefit, but its not! When I tried to remove “auto withdrawal to bank account” then you are greeted with a message
You can’t remove auto withdraw account, This is an Indian regulatory requirement and applies to all PayPal users in India."
So, auto withdrawal is forced on Indian users only – and like every time, the reason is the same – Indian regulatory requirement!
PayPal should shut shop in India…