It is the second time in a nearly one year that this kind of issues happens in India and I myself think that it has caused a lot of problems for Indian PayPal account holders especially those who are doing online business and PayPal is their major payment gateway. Anyway, it is now fine and all electronic withdrawals are now just ok as it is.
As I remembered that Indian PayPal account holders has faced a big problem in the past regarding local bank transfers and personal payment to or from India and many transactions have been reversed due to this issue. The main reason seems similar to this time issue and I guess that PayPal has not strictly followed all related regulations and policies mandated by Indian Government.
PayPal is still the #1 online payment gateway that most of us prefer in terms of selling, buying or any payments as it is very fast with great support. Most of companies and service providers are now using or at least integrating PayPal as one of their default payment method. We can easily get our commissions from affiliate networks on timely manner.
Having a look at Indian PayPal situation, I am a bit concerned about Vietnamese PayPal account holders including me. There have been no major issues since PayPal opened local bank withdrawal service early this year. This change has boosted our online business since then. However, no one knows what will happen and I do hope that PayPal would have got a good lesson learnt from Indian case to apply for other related countries in Asia.
Congrats to Indian bloggers and thanks to PayPal for prompt action to get this issue resolved. Good luck to Vietnamese PayPal account holders too.