Merchants from India doing business through Paypal have reason to rejoice. Paypal has launched a new withdrawal feature. Users from 26 countries including Malaysia, India, Indonesia and the Philippines can transfer funds directly to their Visa® branded credit card, debit card or prepaid card. There is a withdrawal fee per transaction. And you must be a verified Paypal member. The following graphic sums up the withdrawal process.
It has come as a boon from me. This was a real problem I had been facing - how to transfer my funds to my Indian bank account. Earlier one had to wait for the $150 mark and Paypal would then send a check. Now all that is over. 
hi,
r u sure this works in india … coz i called up my credit card company HSBC and they said RBI will not allow such credits ..
i have seen that we can transfer directly into our bank account in INR.(not tried yet)
Thankyou,
devang
Yes, now we can directly withdraw to our bank account as well.
Actually I haven’t yet tried any of the ways but withdrawal to bank account seems the better option and it has no minimum withdrawal amount as well.