Paypal has published a list of export codes on their blog for bank withdrawals to business accounts, which will start from March 3, 2010.
Most codes are applicable for goods exporters and service providers. For bloggers and online publishers, the codes P0805 and P0806  seem to be applicable

They also seem to have started charging a fee for personal payments already.  There is no mention of how Paypal mass payments will be considered. Some ad networks have already started sending checks and using other payment options, which are less problematic.

At present withdrawals to Indian bank accounts have been disabled, you get the following message

We are making some changes to our product in compliance with India regulations for settlements for exports of goods and / or services. During this time, we have temporarily suspended the ability to withdraw money to your bank account. We hope to resume settlements to enable you to withdraw funds to your local bank account without delays.

As part of the changes, you will also be required to fill out a new field entitled ‘Export Code’ when you request a withdrawal. This information is required in order to identify the nature of cross-border merchant transactions.

Our sincere apologies for the inconvenience you must be facing. Please be assured that we are working to resolve this as quickly as possible and we will make sure to keep you updated.