PayPal Inc. is no longer processing personal online payments to India.
The payments unit of ebay Inc. said in a blog post this week that it has suspended the traffic because of specific concerns raised by "business partners and stakeholders."
It suspended transfers to bank accounts and international person-to-person transfers Jan. 28. It still allows international commercial payments and plans to restore bank transfers shortly, but person-to-person payments might be unavailable for several months
PayPal representatives would not provide additional details.
Mrinalini Manral, an analyst with the Mumbai research firm Dassler Business Intelligence, said PayPal's decision "seems like a reaction to new Indian government regulations that are aimed to strike down on money laundering."
At the end of 2009, the Reserve Bank of India ordered new reporting and verification requirements on international banking transactions, Manral said.
"This may have put off PayPal," Manral said. "However, this may be temporary, as India represents a lucrative market with the thousands of Indians working on projects outsourced from the West."
