Orig article at PayPal offcourse you gotta take the pain in the rear to find it your self:

https://www.thepaypalblog.com/2010/07/update-on-paypal-accounts-for-india-users/

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Hello Zoe,

Good morning.

I wanted to make sure you aware of a notification that was sent yesterday to customer’s in India. I have included the notification below.

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 apologize 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.

Please let me know if you have any questions regarding this change.

Sincerely,

Carolyn Anderson / Merchant Account Manager
direct 866-923-3778 / cell 402.960.9871
fax 303.395.2821
office hours 7:30 AM – 4:00 PM CST Monday – Friday

I really need to get into other options – waiting for a month is not going to work obviously…

Priya

This also means that the rate at which you withdraw the money from your PP will not be in your hands.

As when you will deposit the cheque, it will take another 15 days for your bank to get it cleared and you will be unaware of the rate at which it is converted to INR, moreover, there will be Bank Charges as well on the same

Can some one list all the options of getting payments from outside India??

All services, links their pros and cons??
Thanks,
Himansshu H Singh

Getting a Check from PayPal on your doorstep takes approx. a month and yes, it comes via regular mail. I have shifted to Bank Wire and other payment methods so this time PayPal policy wont affect much and hope everyone else has also learned the lessons from earlier glitches and not in a bad situation now.

Priya

Dear ,
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.

Now, i guess telling the same thing earlier would have saved me anxious nights and increased their credibility.

Alas, thats the way companies work in India.

I also requested a withdrawal on 7th, and it has yet not credited to my bank account. After enquiring from paypal, I was told that I should ask my bank and they cannot help.

I wrote them back just now that how can I ask my bank for something (whether right or wrong) never happened. I need some proof – which only Paypal can provide – that a payment was initiated from their side and its credit was denied to my account by my bank. Also, the same payment has not been reverted back to may paypal account.

Lets see what their reply is to this.

It was quite smooth since March 4th when local bank credits were restored by paypal; but it seems (after reading a few complaints here) that paypal is again having problems with bank credits.

The biggest issue is however that paypal is not clear when it comes to sharing info with its customers. their replies are treasures in themselves which are nowhere to be found. How can some executive in a renowned financial institution like paypal say that you should ask your bank why it denied credit payment to your account. All this without a proof and without reverting back the money to my paypal account. Doesn’t paypal know where the money has gone. For Gods sake, it was not cash that paypal delivered to my bank by a delivery boy who never quite reached my bank and has yet not returned back to paypal.

Pareek

Seems like the same old problems are returning back.

I have done two withdrawals one on 9th April and the other on 11th April, I got the funds in my bank for 11th transaction but it was pending for 9th. After calling them 3 times they said the purpose code used was wrong and they reversed the amount and then asked me to do the withdrawal, which i did while talking to them on the phone yesterday ie 15th April. They said now they are not seeing any issue and i will get the funds, today morning i have seen the status and it still says pending donno what will happen now.

This paypal is giving a really tough time to all of us, we should raise a voice and need to do something about it quickly and its better to shift to alternative resources.

Regards,
SV

I submitted my voter ID card instead and mentioned that since I lived on rented accommodation, I did not have a utility bill in my name. Apparently this satisfied them and my account limitation was lifted after about 1 week after my account got limited. However the reversed balance was lesser than when I had initially started the withdrawal. In details the currency conversion seemed to be the cause.

After pestering them through the contact us form a couple of times, they restored my balance to the correct amount. I initiated a withdrawal again in the first week of april, and I finally got the money in my account in about 4 days.

Just an update for the worried souls out there. Though the experience left me a bit irritated, I finally did get the money in my account. And I have now moved to Payoneer. Lets see how it goes.

Did you get the money in your account – I initiated a withdrawal on 7th April and still see the status as pending in paypal – anyone facing this issue?

Priya

but for me i cannot submit the receipts as i dnt hav any.after long time arguements they let me withdraw my remaining money in paypal,but my account is still limited one.

the only thing u have todo is call customer care.
it’l b good if u call them siting in front of a computer and ur paypal logged in.
good luck bro.

once again thanks for priyanka !

http://ibnlive.in.com/blogs/jaimonjoseph/326/61644/has-paypal-given-you-problems-yet.html
“I cross-checked my data with Alpana Killawala, at the Reserve Bank of India, I was in for a slight surprise. All money flowing across our borders is subject to two major laws. The Foreign Exchange Management Act (FEMA) and the Payments and Settlements Act of 2007.

According to those laws, organizations like PayPal should have submitted themselves to scrutiny by the RBI. They hadn’t, so they were pulled up. To prevent inconvenience to customers, the Reserve Bank has allowed PayPal to honour all transactions done upto January this year. But they’re still on the watch list.

If they don’t satisfy all the bank’s detailed questions by the thirtieth of April, their operations could be disrupted again!”