PayPal halts ‘personal payments’ to, from India

The online payments service PayPal has taken the unusual step of suspending many transactions in India for more than a week.

The announcement was made by PayPal spokesman, Anuj Nayar, on the company's blog.

"I'm 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," Nayar wrote on Saturday.

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"During this time, customers can still make commercial payments to India but merchants cannot withdraw funds in Rupees to local Indian banks," he added.

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Nayar said the suspensions began Jan. 28. He wrote that PayPal, which is owned by eBay Inc., hopes "to resolve the situation as quickly as possible."

He did not elaborate.