Paypal Officially Blocks Purchasing Goods From Indian Paypal Account

I am seriously at loss trying to understand RBIs objective in forcing this. Better tracking of money for business and individuals, sure yes, there are simpler consumer friendly ways to do that.

-Make it mandatory to enter PAN information. Treat it like any other bank where with PAN you know exactly what money came in and where it went out/was spent.

Why restrict the amount to $500, why force me transfer it to my bank account, why not allow me to shop online using money that is mine and also due to the PAN card regulation, has been informed to the RBI.

I can still ask for transactions in multiples of $500 to start off with. It seems RBI is simply making their own job easier by imposing regulations which leaves no more work for them to track this money.