9 December, 2023


Paypal halts payment


For more than one week, PayPal has stopped all transactions “to and from India” which has put many small and medium companies in dire situation.  In the official blog of PayPal, which is https://www.thepaypalblog.com, Mr. Anuj from the PayPal communications team has stated that “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.”

Before embarking on the above decision, if PayPal had intimated their customers and given prior notice, they could have avoided putting so many PayPal customers in a tight situation.  We have to come to know that hundreds of IT companies have been hit hard because of this event, and their stress is in fact tremendous and it is hard to digest of such a development.

We believe this is the first time that such an issue has risen out from PayPal, and they take necessary action to arrest this issue and thwart the negative situation prevailing here.

In future, PayPal should avoid such event and duly notify their customers about the developments.


Punith is Digital Marketing Head at Contus. He has worked with startups since 2005 to market their products and services. Along with the passion for analytics and marketing he enjoys offering strategic digital and inbound marketing solutions.


  1. Bala Reply

    Yes, you are right.

    Paypal has created tremendous financial problems to hundreds of companies and thousand of paypal users. It also affects the lives of thousands of people who work for those companies as the latter are unable to pay salaries.

    It’s not so easy for those companies to borrow lakhs of rupees from someone on short term basis and that too during times like this.

    Since the vendor payments cannot be released, the reputation of these companies are spoilt and also it affects the cash flow rotation of those vendors.

    Also, the monies what those companies receive from their customers to paypal account are all reversed back by Paypal, which effectively creates fuss and cash loss.

    Even the monies which were tried to be withdrawn before Feb 01, were credited back with a exchange loss.

    Because of all these problems, it becomes difficult to concentrate on day-to-day activities.

    Strange thing is that nobody knows when is thing going to be resolved.


  2. admin Reply

    You are right, imagine the plight of companies which had planned on the funds deposited in PayPal. This is extremely excruciating. . .


  3. Chris Reply

    … and if PayPal is not the problem, but Indian Bank people ?
    worldwide no problems with PayPal – only in India! Count on 2 fingers where is the problem!

  4. admin Reply

    Hi Chris,

    For your kind information, please see the message passed on by PayPal within quotes ” I’m writing to let you know that personal payments to and from India and transfers to local banks in India have been suspended ”

    This clearly states that it is PayPal which has suspended the payments and not the Indian Bank people. Hope this clarifies your doubt. . .

    The problem is that we do not know the reason behind the sudden blockade and there was no prior intimation about it! Just imagine you are not able to withdraw funds from your account, sort of freeze without any intimation and without solid reason. . . would you accept it. . .

    Thanks for participating in this blog. . .

    Thanks and Best Regards

  5. Amish Patel Reply

    And the fact is Poor Paypal Communication Customer Care Sucks and they dont understand what we are talking. they never said this Officially nor on Payment Gateway

    It this its in Serious Financial Troubles and All Stack Holder sud take this a warning Signals that Paypal is gonna Defaulted.

  6. Anirudh K. Mahant Reply

    Recent issues with PayPal withdrawals to Indian Banks & more over payments just randomly being reversed back to the senders will have a deep impact on PayPal’s reputation. It raises so many questions like (THIS MIGHT CONTAIN SPOILERS):

    A) Should we trust PayPal in future?

    B) Are they really concerned about our Money?
    ANS: ABSOLUTELY NO, After a long period of two weeks we receive an apology letter stating that “We are sorry we goofed up opps!”? and stuff like “Your money just got sacked since this is nothing serious to us we are just doing a drill of playing a game with your hard earned money”?

    C) Is RBI responsible for this?
    ANS: UNQUESTIONABLY MAYBE, So, Question is why this is happening in India and nowhere else? Question is why we are being kept behind curtains and dark? Question is why Moneybookers and other Payment systems are working but PayPal is not? you just want to exclude the RBI out of this since they are least concerned with us. Everyone failed here! RBI off course you cant expect them to give you a comforting truth so a comforting lie should suffice you! And PayPal Ow man no shit a multinational company failing to inform and notify of an issue of this magnitude. That was an AWESOME combination of pure frustrating, destroying trust & spreading chaos.

    D) So what does PayPal tell us now?
    ANS: “We are sorry, but your valuable to us so please give us another opportunity to goof up and play some more engaging games with your money” and “We just love to make more profits by giving you a pathetic exchange rate”

    D) What now?
    ANS: DTA (Don’t Trust Anyone) Get your sleeves up against them and find your own ways to get paid over any other medium that serves better, communicates better and keep them in plenty. If one fails other should work out.

    Ive let all my clients know about this issue and advised them (in advance unlike PayPal) to switch over to some other Payment system which is reliable, responsible and does the main thing “ACTION” at PAR. The truth will probably be dead and berried RIP about what happened because the shame and disgust they bring upon themselves is apocalyptic now.

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