Users of online payments gateway PayPal in the country can now receive up to USD 3,000 per export-related transaction in their accounts, with the RBI raising this limit from USD 500 per transaction earlier.
The increase in the limit is with immediate effect, but merchants using Paypal accounts to receive funds would need to add their PAN (Permanent Account Number) and bank account details to comply with the RBI guidelines, PayPal said today. The step will help the Indian SMEs and consumers who use Paypal to receive their payments. In addition, the move will support PayPal and the budding India business of its parent company eBay, an online marketplace.
"This is a huge step forward for PayPal and for Indian SMEs, who can grow their export business through e-commerce by tapping our 100 million active users in 190 markets across the globe, right from the US to the UK to Australia," PayPal India Country Manager Mayur Patel said in a statement.
"We are thrilled about the increase in transaction limit and would like to thank the RBI for understanding and being supportive of the needs of SMEs who wish to expand their business through cross-border trade," Patel added. eBay, which claims to have an online community of 2.5 million in India, has about 12,800 registered merchants in the country, who consider selling through eBay either their primary or secondary source of income.
The Indian merchandise popular among foreign buyers includes precious stones and diamonds, jewellery, leather goods, handcrafts, furniture and ethnic wear. eBay India Director - Category Management Kashyap Vadapalli said: "This is exciting news especially 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."
"Today's news can help these SME's sell higher valued hand-made jewelry, leather products, ethnic Indian clothing and even motor vehicle parts of up to USD 3,000 per transaction to buyers across the globe," he added.