RBI (Reserve Bank of India) has made compulsory to Transfer any Payment Received for Goods and services by Indian PayPal Users to their PayPal account within 7 days from the received date. This Policy is affected from March 1, 2011. And any Indian PayPal User can't use his PayPal Balance to buy goods or services over Internet. Therefore for Indian Publishers there is no any option other than to transfer their PayPal Balance to their Indian Bank Account.
Since I was received a small payment from Adbrite on March 7, 2011. I transferred it to My Indian Bank Account. PayPal Charges for Fund Transfer in India are as,
- Up to Rs.6,999 - Rs.50
- Above Rs.7,000 - Free
This is a very small service fees charged by PayPal for Transferring Funds Directly to your linked Bank Account. You can also get your Payments via Cheque [check]. But it takes up to 20 days to get money in your account therefore Online Fund Transfer is good and takes 4-7 days.
But when I saw the PayPal Currency Converter Rate I was little shocked. Since I am from India, converter did following conversion.
- USD - INR
PayPal Currency Converter rate for USD to INR is Counting 1 USD = 43.6312 INR. Now see the Result for the same amount and for same days and same time at another Currency converter say, XE.com (The World’s Favorite Currency Converter Site).
Comparison Between PayPal & XE:
- PayPal : 1 USD = 43.6312 INR
- XE.com : 1 USD = 45.0329 INR
- Difference between both: 45.0329 - 43.6312 = 1.4017 INR
- Total Amount loss at PayPal (For $100 US): 4503.29 - 4363.12 = 140.17 INR
Hence if you are transferring $100 to your India Bank Account from PayPal You will be loss 140.17 INR just for lower Exchange Rate from PayPal. But there is no any other option available for Indian PayPal users.