There are chances that the things will start again to roll but the main thing which will always be in mind of the people using paypal is its trustworthiness.Well i have lost almost of it.As i have to leave my $210 for it.

According to the post at Techcrunch the matter is clear that it is because of some problem ongoing between the paypal and its so called business partners which i think are banks of india.As soon as they are able to solve it they will let us know.

As according to the post at dp by its member

Who had received the customer support mail stating this

Thank you for contacting PayPal, my name is Gabriela and I hope you are
having a great day.

Now verifying the information on your e-mail address, I do really
understand how you feel because of this situation. But what we want you
to understand is that (the banks instiutions, because of the regulations
from your country and PayPal) we are doing our best to fix this upgrade
as soon as possible, because we know how important it’s for you to
correctly use your service. Also, we do understand the way we are
asking you to complete the transactions does not match with the
purchase/service that you want to get, since you are requesting a
service and not a “goods”, but at this moment that’s the only option we
can give you to complete the transaction, otherwise (if possible) you
can hold until the update is done even if we do not have an estimated
time.

And according about the last 2 questions of who is going to be
responsable of the transactions because of the reversals, we are also
working to give you a correct and a better answer. And apologize again,
because I know that you may probably feel that I do not want to assist
you, but that is the only information we have at the moment. As i
mentioned before, we are working to fix this update at soon as possible.

I wish you a great weekend.

We know situations like this can be difficult, so thanks for working
with us. If you have more questions, visit our Help Center by clicking
“Help” in the top right corner of any PayPal page.

Sincerely,
Gabriela

PayPal, an eBay Company

Now the problem is among the banks and paypal.It might be for charges or some other financial or legal matter might be now paypal add some more formalities to be proven by indian’s like the pan card which i think they should do so that there can be a command over things like money laundering etc.

Dear <user>,

Thank you for contacting PayPal.

I understand that you want to know why the payment you received for
$<xx.xx> USD from <user> is reversed. This payment was sent as
Personal. We have stopped allowing Personal Payments to be sent to and
from India.  We are aware of this issue and I sincerely regret the
inconvenience it has caused you. We are trying to resolve this as soon
as possible. Below are the details:

Personal Payment – Send Money for India Accounts

· India customers are no longer able to see the option to send a
Personal payment on the Send Money page
· They can continue to use other payment options, such as eBay checkout.

If this was a payment for a purchase of goods or services, and not a
personal payment, then you may contact the buyer and have him or her
resend the payment as follows:  (a) click the Send Money tab, (b) select
‘Goods’, and (c) provide a shipping address.

If this payment was a personal payment, such as a gift to a friend or
family member, then we request that you find another payment method
until we restore personal payments to and from India.

Although India customers are unable to send Personal payments, they are
still receiving Personal payments from Non India customers.

· In order to stop ALL Personal payments TO and FROM India accounts, we
have started reversing Personal payments sent by Non India customers
starting today. (the only exception will be in cases where the buyer has
included a shipping address – we don’t want to delay any shipment of
goods)
· Emails will be sent to both sender and recipient to let them know why
the money was returned and what options they have to proceed forward.
(see attached for examples)
· We are also in the process of implementing a change on the website to
automatically stop the payment from processing, rather than waiting to
reverse the payment.  We will send you additional updates as soon as we
have more details.

The Personal payment option on the International Send Money page has
been updated and India has been removed from the ‘select a country’ drop
down list.

· If the payment was for a purchase of goods or services, and not a
personal payment, then the buyer may resend the payment to the seller by
following these steps on the PayPal website: (a) click the Send Money
tab, (b) select ‘Goods’, and (c) provide a shipping address.

I’ll be glad to hear from you if you need clarification, please email us
again and we will try our best to give you immediate answers. Thank you
for choosing PayPal for your online payment needs. We appreciate your
business.

Sincerely,
Dayna
PayPal, an eBay Company

Copyright© 2010 PayPal Inc. All rights reserved.

Consumer advisory: PayPal Pte Ltd, the Holder of the PayPal™ payment
service stored value facility, does not require the approval of the
Monetary Authority of Singapore. Consumers (users) are advised to read
the terms and conditions carefully.

Got more questions? You’ll find answers at our improved help center.
Click “Help” on the top right corner of any PayPal page to get started
or you can visit www.PayPal.com/101.

Original Message Follows:
————————
Form  Message
customer  subject:  Clarification  on  personal  payments  being  reversed.
customer  message:  Transaction  ID:  ’xxxxxxxxx’
Additional  Information:  ’The  payments  we  receive  are  being  reversed.  Can
you  please  clarify  your  stand  on  ”personal  payments”  to  and  from  India?
What  is  a  personal  payment?  We  accept  donations  for  our  free  software.
What  is  the  solution/workaround  for  this  issue?’