The Indian central bank has asked Paypal to suspend some cash transfers to and from the subcontinent, leaving thousands of small companies without an income.
The Reserve Bank of India said yesterday that Paypal was not properly registered, following a change to the law in 2008. “Providers of cross-border money transfer service need prior authorization from the Reserve Bank under the Payment and Settlement Systems Act,” a spokeswoman told the NYT. “PayPal does not have our authorization.” The problems may take months to solve. Read more