Who regulates PayPal

PayPal operates in India under the oversight of the Reserve Bank of India (RBI) as a payment aggregator, meaning it must comply with India's cross-border remittance rules, foreign exchange regulations, and know-your-customer norms. However, PayPal's India entity functions primarily as a facilitator for outbound payments and limited inbound receipts, which is why many Indian exporters and freelancers find its fee structure (often 4% to 5% per transaction plus currency conversion markups) and withdrawal timelines less competitive than RBI-authorised alternatives designed specifically for receiving export proceeds.

For seamless international collections, PayPal business account for Indian exporters can be compared with platforms like Skydo, which is also RBI-authorised but built exclusively for inbound foreign receivables, offering faster processing, lower fees, and competitive exchange rates. If you prioritise regulatory compliance alongside cost efficiency, choosing a specialist cross-border platform may serve your business better than a general-purpose wallet.