Quoted from a site

Paypal is facing severe outage and all payments to/from India are being reversed.

This is an email I received from one of the payment service

We were just alerted that PayPal India is experiencing some challenges and stopped allowing payments to be sent to or from India. Funds requested through PayPal India are being reversed to their senders, and users have no access to them. PayPal has yet to share with us an estimated time for resolution.
Update: We have sent a mail to Paypal India and haven’t got any convincing answer yet. The only convincing part has been Alok’s comment on this issue:

I read somewhere that this has happened because RBI asked for some documents but Paypal didn’t furnished them and as such all the transactions from Paypal to Indian Bank has been reversed. That do explain the delay in withdrawing the money from paypal to bank accounts(which people are reporting that they are facing this from 26th Jan onwards) but doesn’t explain why the money is being returned to original senders and that too without any kind of intimation at all.
is paypal moving out of India ?