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The government of India forced PayPal to restrict itself heavily in 2009 and 2010. Indian PayPal users could not purchase anything with PayPal money and had to move money received through PayPal to a bank account. This was due to PayPal essentially being a bank but avoiding all taxes and regulations most banks in India follow. As of October 2012, PayPal has been able to regain some use in India via applications and can now be used for purchasing goods.

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Q: Why does PayPal India have so many restrictions?
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