Few days ago Paypal informed that it is closing the option for Online Bank Withdrawl in India. But now that option is turned back on. Please read more for full info.

This is the mail we got from Paypal-

Dear,
We've received good news. You can continue to enjoy electronic withdrawals just as you did before.


While we have received your appreciation for the advanced notice and the refund of the cheque processing fee, we also have heard loud and clear that you highly value the ease-of-use of our electronic withdrawal service. Our customers are our number one priority and we are working tirelessly to improve our service.


Thank you for your patience and in appreciation for your continued support, we will still provide the $5 USD processing fee refund for any cheque withdrawals made from July 29, 2010 until further notice.


For any inquiries, please contact PayPal customer support by logging into your PayPal account and clicking on ‘contact us' at the bottom of the page.
Thank you,
The PayPal Asia Team