Online payments provider PayPal has increased the per-transaction receiving limit for merchants in India to $10,000.
This essentially means that merchants registered with PayPal will be able to receive up top $10,000 in one transaction for export-related payments for goods and services.
According to an email communication from PayPal, merchants will be able to accept credit and debit card payments on their website, mobile, eBay listing, or by sending an invoice.
However, to be able to receive export-related payments, merchants would need to confirm their email address, and add a Permanent Account Number (PAN), Purpose Code and local bank account to their PayPal Account.
The move comes after the Reserve Bank of India issued a notification allowing Online Payment Gateway Service Providers like PayPal to increase the per transaction receiving limit to $10,000 for export related remittances, as
reported by MediaNama.
Previously, the receiving limit per transaction was capped to $3,000 by the RBI. While merchants carrying out transactions through online payment providers will now be able to receive payments of up to $10,000 in one go, it's worth pointing out that these payments will be automatically transferred to their bank accounts as payments are auto withdrawn every day. The steps taken by the Reserve Bank of India are to ensure that these transactions get recorded.
In September 2011, the RBI had capped overseas payments per transaction to $500. The limit was increased to $3000 after just one month.
It was also
reported that PayPal had got a license for domestic payments license in India, and could soon start offering domestic payment remittances in the country.