It has appeared that personal payments to and from India and transfers to local Indian banks have been temporarily suspended by US online payments company PayPal.

In a weekend blog post on the company website, PayPal specified that since the company is busy working with its business partners and other stakeholders to answer questions they have about the service, it has decided to keep the operations on hold.

No further details regarding the move were made available by PayPal, which is owned by online auction giant eBay.

The company clarified that its customers though merchants cannot withdraw funds in rupees to local Indian banks, the customers can still make commercial payments to India.

PayPal explained that they are making efforts to solve the situation as soon as possible. The company also apologized for the inconvenience that this may cause their customers in India and around the world.