It’s a ray of hope for those suffering from the Great Paypal India Debacle, Finally, Paypal India is trying to restore the negative balance created to your accounts if you initiated the transfer to your bank account.
Update: My final observation is, Your Money With PayPal India Is Not Safe, Look for Alternates. They can reduce the balance of your Credit Card and Bank Account which are linked to your PayPay account, without any notice too.
Still I am not sure how they will deal with your previous +ve balance as you may loose money from your existing balance/ credit card or bank account due to currency exchange rates and it’s daily fluctuations. You can not withdraw the funds to your bank account (till they let you know), so situation is still not at all under control.
Here are the mail for your reference:
Thank you for your patience while we work to address the issue of processing withdrawals to Indian bank accounts.
We expect to have this issue resolved within the next few days. In the meantime, we’re going to restore the amount of your recent withdrawal into your PayPal balance so that you can know your money is safe in your account. You should see the balance restored within 24 hours. In addition, you will see a reimbursement of any withdrawal fees charged. We will ensure that you are not adversely affected by currency fluctuations during the last week.
In your transaction log, you will soon see that your PayPal withdrawal request has been reversed. We ask that you wait to submit another bank withdrawal request until we have addressed the processing issue. We will contact you again in a few days with an update and, if the issue is resolved, you can initiate another withdrawal at that time. In the meantime, you will have the ability to spend your balance to purchase goods or services if you choose.
Again, we apologize for the inconvenience this has caused.