Paypal India not allow to receive more than US$500

Today morning I received email notification from   PayPal again going to change its user agreement. a major changes that will really affect a lots to each PayPal customers in India.before a few months ago PayPal stops Bank Account Transfer for Indian users.later on they lifted that banned.
Looks like PayPal and RBI aren’t going well together. Earlier, PayPal had to stop payments to individuals in India which was later lifted. Now, PayPal has come up with following changes to its user agreement policy applicable to users in India -
what PayPal said about this change of user agreement
With effect from 1 March 2011, All PayPal India users are required to comply with the requirements set out in the notification of the Reserve Bank of India governing the processing and settlement of export-related receipts facilitated by online payment gateways (“RBI Guidelines”).


So, what are the major changes for this change of user agreement

• Any balance in and all future payments into your PayPal account may not be used to buy goods or services and must be transferred to your bank account in India within 7 days from the receipt of confirmation from the buyer in respect of the goods or services.

• PayPal customers in India will not be allowed to receive payments for any export-related goods or services for an amount exceeding US$500 per transaction. This change is to ensure that we continue to comply with the RBI Guidelines.

• PayPal customers in India will not be able to keep money in their PayPal account balance. Instead, all money received into a PayPal account must be transferred to a customer’s India bank account within 7 days from the receipt of confirmation from the buyer in respect of the good or services.

• We can’t sell product on our website more than Worth $500. means, PayPal customers in India will not be allowed to receive payments for any export-related goods or services for an amount exceeding US$500 per transaction. If you are listing products greater than US$500 per transaction then you may need to seek alternative methods of payment.

• Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction.

On the basis of what I’ve seen and heard so far, it seems ‘keeping’ the money with them for more than 7 days is likely to get PayPal regulated as a bank (as per RBI norms), which obviously they don’t want. Secondly, transactions exceeding $500 have to be reported to the RBI and Govt, so they’re neatly side-stepping this requirement also.
Now , hmm… look likes its time to go with other money transfer service provider 
What you say about this change, fee free to write here, and how it will affect your business from march onwards.