PayPal is one of the the most preferred online transaction system for Indian bloggers, internet marketers, web designesr and freelancers on internet to earn money. In return, PayPal was also doing a great business in online transaction system because of Indians who regularly perform online billing.

Starting March 1st 2011, the Paypal will not be allow to receive payments that exceed $500 per transaction. Also, you won’t be able to keep any money in your online PayPal account – all money received into PayPal must be transferred to your Indian bank account within 7 days. You can read the detailed official announcement on PayPal.com.

Here are the highlights of the new Paypal policy.

With effect from 1 March 2011, you are required to comply with the requirements set out in the notification of the Reserve Bank of India governing the processing and settlement of export-related receipts facilitated by online payment gateways (“RBI Guidelines”).

• 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 7 days from the receipt of confirmation from the buyer in respect of the goods or services; and
• Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction.

If you are running any online business from India and relying on PayPal services, you should be ready with the alternative now. To make task bit simpler, we have searched 20 Useful PayPal alternatives for Indians.

The question still remains whether the online users can trust other payment gateways as much as Paypal. Will you look for other payment options or will you remain a Paypal faithful? If you know any other PayPal alternative, please let us know.