Yes, Now you can withdraw your money From your Paypal account to your indian bank accounts

How does it work?
Only few steps - add your Indian bank account to your PayPal account in order to conveniently withdraw your money.

Login to your PayPal account.
Click the ‘Profile’ subtab on the Account Overview page.
Click the ‘Bank Accounts’ link in the Financial Information column.
Click Add.
Fill out the Add Bank Account form.
Click ‘Add Bank Account’.
You are now able to withdraw funds from your PayPal account to this bank account

Which bank can I use to withdraw my money?
State Bank of India , Bank of India, Canara Bank, Union Bank of India, HDFC Bank, ICICI Bank, ING VYSYA Bank, UTI Bank, Standard Chartered Bank, HSBC, Citibank are the participating banks.

How much does it cost?

For withdrawal amounts of more than 7,000 Rupees are free. For withdrawal amounts of less then 7,000 Rupees, there will be a fee of 50 Rupees

How long does it take to receive funds to reach my bank account?

It takes 5-7 business days, but may take more time, depending on your bank’s policies.

Visit Paypal for more Information