Starting August 1, 2010 Electronic Transfer from PayPal to India Banks will no longer be available. They have already removed Personal Payment/Gift option earlier this year. PayPal is leading payment processor worldwide but is losing a lot of Indian users by making them suffer and passing on the problems to them. Reversing payments is one of many.
PayPal decline has caused increase in usage of other processors like MoneyBookers, 2CO etc which now seems far better to use & safer(No nonsense reversals & Account Limitation).
They also do not have any support for Indians & not many are able to call US Customer care.
Here is the official email:
In accordance with regulatory instructions, we would like to notify you about a change in our withdrawal functionality in India starting on August 1, 2010. At present you can request for either an electronic or cheque withdrawal of funds from your PayPal account if you are an India user.
From July 29, 2010 onwards, you will only be able to request for a cheque withdrawal of funds from your PayPal account.
While we are working hard to restore the electronic withdrawal service, in the meantime, we are bringing this matter to your attention so that you can plan your future withdrawal activities accordingly.
To request for a cheque withdrawal:
1. Log into your PayPal account, click on ‘Withdraw’.
2. Click on the ‘Request a cheque from PayPal’ link.
3. Enter the withdrawal amount and select your mailing address, then click ‘Continue’.
4. Click ‘Submit’ to confirm your request.
In order to help you with this change and until further notice, we will refund the $5 USD cheque withdrawal fee to you for cheque withdrawals made on July 29, 2010 onwards.
For any questions, please log into your PayPal account and click ‘Contact Us’ at the bottom of the page.
We apologise for any inconvenience caused from this change in our withdrawal functionality. We will provide ongoing updates to you here. We thank you for your attention and patience as we work tirelessly to resolve this situation as quickly as possible.
The PayPal Asia Team
Also, here is link to official blog:
Not sure how PayPal is going to survive in India