Is paypal a foreign bank account, as per RBI guidelines (INDIA) and therefore illegal?
I don’t think paypal is considered a bank account. When you pay money to someone’s paypal account; you are putting money in paypal’s bank account, but paypal makes a record of it that they owe a certain account number so much money. So when you request to have the money sent to your band account or have a check mailed to you, they write you a check for the amount that they owe you. They just provide a service to hold money for people until they redeem their funds. I think people have been using it to launder money, and many government agencies are looking into it making sure people don’t use the service for that. I think they are monitoring how much money gets sent through paypal. If you are receiving $10,000 a month through paypal; you better be paying taxes, or they will take everything away from you.
