Payoneer services are banned by Reserve Bank of India. Bad news for Indian freelancers and blogging community.
Sadly, the RBI had done it once again (as they did it with PayPal) and has blocked the Payoneer MasterCard POS (swipe payment) throughout India, and will soon be blocking ATM withdrawals as well. However, the folks at Payoneer maintain that it is a temporary block and it will be reversed in the future by the Indian authorities. In other words, if you have money in your Payoneer account, there is no fear of losing it in the future.
If you are in need of the money in your Payoneer MasterCard, you can try these steps to retrieve it.
If ATM withdrawals have not been blocked yet, so you might want to try out the nearest ATM and withdraw all the money. Since Payoneer does not charge any money for the upkeep of the card if the balance is empty, you can flush out your entire savings at one go.
You can contact Payoneer and reverse your transactions back at the originating site (such as oDesk or Elance or iStockPhoto). From there you can use the many types of different withdrawal methods to get your money back. Payoneer management is working with Indian authorities to resolve this issue, similar situations like that happened in past and they proved temporary.
May be RBI is taking these steps to improve its tax network but freelancing is a source of many for their bread and butter in India. These steps are going to hurt badly these individuals.