I just Received this email from paypal.It seems it is getting harder and harder working with paypal.
Well then i start to think that it is not paypal who is doing this ,It is RBI because of them paypal has to do this
As communicated earlier this year, we are working to implement RBI’s Guidelines regarding the processing of export-related payments. As a result the following changes will be made to your PayPal account:
• Effective 26th September 2011, you will not be able to receive overseas payments exceeding US$ 500 per transaction into your PayPal account.
•Any balance will be auto withdrawn out of your PayPal account daily.
We understand the impact this may cause to your business and seek your support and understanding as we continue to work together with the RBI. We will keep you updated as our conversations progress.
In case you have any queries, please log into your PayPal account and click onContact Us at the bottom of any PayPal page.