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India PayPal mess will take months to fix

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PayPal India has used another blog post to update customers mystified as to why personal payments have been switched off.

The payment service confirmed that the shutdown was because of questions over whether personal payments are remittances - payments from ex-pat Indian workers.

The blog warned that personal payments would likely be suspended for "at least a few months" while it worked with regulators.

But local bank withdrawals should start up again in the next few days, and Indian PayPal accounts which have had a recent withdrawal should see that money restored, withdrawal fees will also be repaid.

Anyone left with a negative balance because of a bounced payment should contact the buyer and suggest they send payment using a different service.

The blog ends with an apology and the hope that the extra information clears up any confusion.

PayPal brought in a third of eBay's revenues in the third quarter - $688m. ®

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