I received this mail yesterday as my payments got reversed backs because of the ongoing PayPal issues now for Indian Accounts. If you read the mail below there is one thing to notice, the problem is with Personal Payments and not with any particular account types.
However if you get payment as / against Service or Goods and if the Shipping address is included the payments are not reversed. Invoice payments and personal payments against a valid address were not reversed back.
It seems like RBI is looking for a verification for the payments which comes to Indian bank accounts and what you receive is not valid might not just get into your account.
Here is the Mail :
Hello Ashish Mohta,
Your payment of XXX.YY has been sent back to the sender of the payment.
We reversed this payment because we have stopped allowing personal payments
to be sent to or from India.
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, then we have
requested that the sender find another payment method until we restore
personal payments to and from India.
We are trying to resolve this issue as quickly as possible and we’re sorry
for any inconvenience.
However the problem stays in getting Money into Indian banks as there are lot of people who are still waiting for things to clear up. Lets hope things get fine sooner.