Restricting the value of each transaction to $500 is however likely to be an inconvenience for Indian exporters and their business partners abroad who use PayPal. For purchases or payments above this transaction value to Indian merchants, global customers will have to use an alternative payment method, PayPal said in its blog post on Friday.

In a circular to foreign exchange dealer banks in India on Nov. 16, RBI said that a few online payment gateway service providers (OPGSPs) have not only facilitated conclusion of transactions but also allowed exporters to retain the export proceeds abroad without repatriation resulting in violation of the provisions of India’s foreign exchange rules.

Acknowledging the importance of the services provided by the OPGSPs to exporters, particularly in facilitating small value export transactions, it has been considered necessary to issue a set of guidelines to cover such e-commerce arrangements, RBI added.

RBI was not available for comment on Saturday.

PayPal has previously come up against restrictions from the RBI, which led it to suspend personal payments into India early last year. Personal payments into India will continue to be suspended, as the RBI told PayPal that it needs specific approvals to allow personal inward remittances to India, PayPal said in February.