PayPal follows RBI guidelines; restricts e-payment to Indian merchants

“Export-related payments for goods and services into your PayPal account may not exceed $500 per transaction,” PayPal spokesman Dickson Seow said in a blog

Washington: Online payment service PayPal on Friday announced changes in its payment to Indian transactions, following the guidelines issued by the Reserve Bank of India (RBI) on requirements for governing the processing and settlement of export-related receipts facilitated by online payment gateways, reports PTI.

Beginning 1 March 2011, “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 seven days from the receipt of confirmation from the buyer in respect of the goods or services,” said PayPal’s blog, spokesman Dickson Seow in a posting.

“Export-related payments for goods and services into your PayPal account may not exceed $500 per transaction,” he said in a blog.

Mr Seow hoped that this 30-day advance notice period will enable its Indian customers to plan their future use of its services accordingly.

For global users, he said he regrets the inconvenience to be caused from 1 March 2011, when they try to purchase from or send payment to an Indian merchant over $500 per transaction.

“For purchases or payments above this transaction value, you will have to use an alternative payment method,” he wrote.

In February last year, PayPal had announced to have suspended certain type of payment transaction in India.

“I am writing to let you know that personal payments to and from India and transfers to local banks in India have been suspended while we work with our business partners and other stakeholders to address questions they have about the service,” wrote PayPal spokesman Anuj Nayar in a blog posting in February 2010.

PayPal facilitates online payment and protects customers’ sensitive financial details with customizable security filters.


Maruti Suzuki Q3 net down 18% to Rs565 crore

Net sales during the third quarter, however, rose by 26.49% at Rs9,276.73 crore as against Rs7,333.77 crore earlier

New Delhi: Dragged down by rising input costs, adverse foreign exchange movement and higher royalty payout, the country’s largest passenger car maker Maruti Suzuki India (MSI) today reported 17.80% decline in its net profit for the third quarter ended 31 December 2010 at Rs565.17 crore from Rs687.53 crore in the same period a year ago, reports PTI.

Net sales during the third quarter this fiscal, however, rose by 26.49% at Rs9,276.73 crore as against Rs7,333.77 crore.

“The third quarter this year compared to the same period last year was marked by pressure on margins primarily due to adverse foreign exchange movement and higher royalty payout,” the company said.

Increase in commodity costs during the quarter also impacted the margins, it added.

In terms of units, the company’s total sales grew by 28.16% at 3,30,687 units as against 2,58,026 in the year-ago period.

Domestic sales during the quarter grew by 36.83% to 2,99,527 units as against 2,18,910 units in the corresponding quarter last fiscal. The growth was led by Alto, Wagon R and Swift. It had posted the highest-ever sales in the domestic market with 1,07,555 units in October 2010.

In November 2010, the domestic sales touched 102,503 crossing the one lakh milestone for the second time in the quarter.

Exports during the quarter were down by 20.34% to 31,160 units from 39,116 units in the same period last fiscal, it said.


Weekly Market Report: A short bounce may be on the cards for Sensex and Nifty

Pessimism is rife. That's why a bounce is likely

The market ended lower in the holiday-shortened week (ending 28th January) on persistent weakness from the domestic arena, fuelled by the rate-tightening move by the Reserve Bank of India (RBI), rise in weekly food inflation numbers and caution about corporate earnings estimate, going forward.

The market suffered a vicious third day of decline on Friday. The Sensex and the Nifty started lower at the opening and continued to fall sharply throughout the day. Towards the afternoon, panic selling gripped the market when it hit a low of 18,235 on the Sensex and 5459 on the Nifty after a free-fall. In the last hour, short covering and some value buying pulled the market higher. The Sensex closed at 18,396 and the Nifty at 5,512. The broader markets were also hammered in the day's trade. The BSE Mid-cap index tanked 2.66% and the BSE Small-cap tumbled 3.59%. With this, the market has suffered a third consecutive day of sharp decline.

On a weekly basis, this has been the third week of decline in the year so far. The market has fallen very sharply from its high in October and some sort of revival is on the cards. If Friday's lows are not broken, we expect a staggered and a weak rally that may take the market to 5,725 on the Nifty. However, the broad trend is down and so if you are buying stocks in this environment-be careful and make only small commitments.

The market opened on a positive note on Monday, boosted by good quarterly numbers announced by State Bank of India (SBI) and Reliance Industries (RIL) last week. The indices touched their day's highs around noon but pared some of the earlier gains and ended in the green. On Tuesday, trading was volatile in the morning session as investors were cautious ahead of the monetary policy and this capped gains in the early session. With key interest rates raised less than what analysts expected, the indices touched their intra-day highs at noon. Investors took the opportunity to book profits, resulting in the indices paring all their gains and venturing into negative territory.

The market opened higher on Thursday on better-than-expected quarterly data announced by some corporates and optimism from the Asian markets. However, selling pressure and a marginal rise in the weekly food inflation figures led the key indices into negative territory. Selling became intense in post-noon trade, dragging all the sectoral gauges into the red and closing lower for the second day in a row.

The market suffered a 3% decline in the week, with the Sensex skidding 611.56 points and the Nifty ending 184.35 points lower.

Oil & Natural Gas Corporation (up 3%), NTPC, Tata Steel and SBI (up 1% each) were the noteworthy gainers on the Sensex. The losers were led by DLF (down 12%), Mahindra & Mahindra (down 10%), Hindustan Unilever, Reliance Communications (down 8% each) and RIL (down 7%).

All sectoral indices ended in the red with BSE Realty index (down 9%) and BSE Healthcare index (down 5%) emerging as the top losers.

The RBI, in its monetary policy review on Tuesday, hiked the short-term lending (repo) rate to 6.5% and the borrowing (reverse repo) rate to 5.5% (an increase of 25 basis points each). It also extended the additional liquidity support facility to banks till 8 April 2011. The central bank has retained the cash reserve ratio (CRR)-a portion of deposits that banks are required to maintain in cash with the RBI-at 6% to ensure that the system has enough liquidity to meet loan requirements. Home, auto and loans to corporates may become dearer, though bankers felt there may not be an immediate increase in interest rates.

Dearer vegetables pushed food inflation marginally up to 15.57% for the week ended 15th January from 15.52% in the previous week, prompting experts to say that the apex bank may go for yet another round of rate hikes in its mid-quarterly policy review in March. Food inflation was 20.07% a year ago.

Based on price movement in the wholesale market, food inflation rose by 0.05 percentage points for the week ended 15th January, after declining for two consecutive weeks.

Oil minister S Jaipal Reddy has ruled out deregulation of diesel prices, saying it is not politically and practically feasible. Mr Reddy, who replaced Murli Deora as the new oil minister last week, had said that one of the major task at the nation's highest economic turnover ministry is clearly cut out-avoiding fuel price hikes.

Expressing concern that the black money stashed in banks abroad might have originated from arms deals, drug trafficking and smuggling, the Supreme Court has asked the government as to what action it had taken against individuals and firms having foreign accounts. The court also sought replies from the government, RBI and the Chief Vigilance Commissioner on a petition seeking direction to the government to ratify the United Nations convention on corruption, which would facilitate it in bringing back black money from foreign banks.

The market will look to the global arena for support and direction in the next week. Besides, the last lot of corporates will announce their quarterly numbers during the week.



p k jain

6 years ago

this one is realy good. I think RBI has to correct its thougt process about liquidity. the govt is not doing any thing as far as the inflation is concerned. U see, farmers r still getting the prices much below of the trading prices. there r middlemen who r controlling the whole of India's trades, n no body is there to check the hoaders. How come the RBI n all Govt machinary is unable to see the price gap. Only the strictest n exempellary action is required. Does Govt has the sweet will to do so?

Ranjan D Gupta

6 years ago

RBI is constantly increasing the repo and reverse repo rate.I feel there is no meaning of it. Inflation is high basically because of supply side constraint.It cannot be tackled by increasing repo rate and reverse repo rate.Rather it will hamper the growth of industry as a whole.Already Real Estate sector started suffering.Banks though faired well in the third quarter but fourth quarter result will definitely not be satisfactory.Govt should take measure to control food inflation by importing food grains and other products so that the price in vegetable and grain market will come down gradually.Govt should keep an eye for proper distribution of food articles all over the country at fair price.Once food inflation will come down WPI will come down and so the CPI.

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