PayPal in India will now Reverse all Transactions above $500

paypal india will now auto reverse all the transactions made above $500. This rule was specified couple of months ago, but was not applied as the users continued to receive and send payments above $500.

RBI in India has strictly sent the notice to Paypal earlier with the three rules which should be applied, they are 

You will not be able receive funds more than US$500
You cannot keep money as a PayPal balance
Your customers will need to link a credit card to their account in before sending you money with PayPal
PayPal also sent mail to all the Indian users -


In order to comply with the RBI Guidelines, the PayPal user agreement in India will be amended for the following services as follows:


Any balance in and all future payments into your PayPal account may not be used to buy goods or services and must be transferred to your bank account in India within 7 days from the receipt of confirmation from the buyer in respect of the goods or services; and Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction.


But these rules were not aplied by PayPal and webmasters continued the heavy transactions using PayPal, but from October 2011 they applied these rules and any payment you receive more that $500 will be sent back to the sender, so be careful and don’t receive payments more than $500. You must also transfer the payments in PayPal to your bank account immediately (you can set auto transfer in PayPal setting).  So whats the solution? The solution is you can receive the payments in installments, for example if you want to receive $1000 then you can receive two installments of $500 each or you can find best alternatives to PayPal if you want heavy single transaction.