Starting March 20 free account users will only be receiving 5GB of storage. If users fail to free up the extra space they are utilizing by deleted their data, RapidShare will do the honours by getting rid of any data that takes up space beyond the limit of 5GB on April 3. To be precise, if you have storage 15GB of data on RapidShare, the company will permanently delete 10GB of data April 3 if you fail to take any action.

RapidShare informed its users through a FAQ page post, “If you exceed your storage space limit, you will receive a warning email that files will be deleted,” RapidShare warns.

Asking users to upgrade to paid storage if they want to keep their files, the company wrote, “If you don’t add storage space within the next 24 hours or delete some of your files, we will delete files. That happens at midnight 24:00 CET.”

Beyond the storage caps, RapidShare will only allow 5GB of data download to free users per day. So users with large amount of data stored would need to act now otherwise they may not be able to download all their data before April 3.

The online storage company has gone ahead with quite a few changes in its business model lately in a bid to avert any MegaUpload style fiasco. The latest move is targeted at free users and it seems that the move will not only deter free users from using the service for piracy but, will also guarantee increased revenue.