HDFC bank
FCY Cheque Collection and Lockbox (FCY personal cheque, FCY DD’s and TC’s sent for collection) 0.25% of INR value (Min. Rs. 250/- per transaction)
Plus Courier of Rs. 50/- per cheque
For Transactions value upto USD 500 – Rs 200/- per transaction plus courier charge Rs. 50/- per instrutment
Foreign Exchange Conversion Fees – Rs. 90.64 (plus service tax and education cess)

Foreign Exchange Conversion Fees charged by HDFC bank seem to be higher than those charged by ICICI bank

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.

I got the following email today:

Dear ***,

We have been diligently working with the RBI and our business
partners to resume Indian bank withdrawals for the thousands
of Indian businesses who depend on PayPal to sell their goods
or services in the global marketplace.

Today, we are happy to announce that the RBI has allowed us
to continue local bank withdrawals for settlements for exports
of goods and services. We are currently making changes to
comply with Indian regulations for settlements for exports of
goods and services, and we anticipate that, as of Wednesday,
March 3rd, customers will be able to use our
bank withdrawal service.

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

On Monday, March 1st, we will be back in touch with specific
instructions on how you can move your money into your bank account.

Moving forward, the RBI has told us that PayPal needs specific
approvals to allow personal remittances to India, which we
currently do not have. Until we get these approvals, personal
payments into India will remain suspended. However, if you are
an exporter, you will continue to be able to use the PayPal
service for payments of goods and services. In fact, with the
changes we are making to our system, PayPal is now set to be a
more powerful engine for exporters in India. With purpose codes
for export transactions and FIRCs (Foreign Inward Remittance
Certificates), you should now be able to get the export
related benefits you seek.

You can check the PayPal blog for additional updates.

www.thepaypalblog.com

We thank you for your business and for your patience during
the past few weeks.

Sincerely,

PayPal

Direct transfer of funds from Paypal to Indian bank accounts is still not possible.  Paypal seems to be contacting  business account holders with large balances of over $10 K  and offering them the facility to withdraw the balance by wire transfer to their bank accounts.  Many eBay sellers need the funds for buying new stocks. However, many banks charge a fee for incoming wire transfer , but the exchange rates are usually higher for  SWIFT transfers than the rate Paypal offers. The eBay sellers seem to have been contacted by Paypal directly or through their Paypal account manager.

Currently Indian Paypal account holders can withdraw using a credit card or check. For both there is a $5 withdrawal fee, but the $5 fee for checks will be reimbursed according to the official Paypal blog. Earlier there was no limit on withdrawals for certain business accounts, but now there is $2500 monthly limit for check withdrawal.  The checks are sent in Indian Rupees, drawn on Citibank.

Many Indian freelancers with a verified Premier and Personal account could withdraw money from their Paypal balance using Xoom , but now they are facing problems since intra-India transfers using Xoom seem to be getting blocked since 21 February. RBI seems to have imposed restrictions on Xoom and the issue may be resolved in 2-3 months.

The issue seems likely to get resolved by March 10, 2010, when there is going to be a new Paypal policy update and all payments to Indian personal accounts will be charged a fee similar to that charged for premier and business accounts.

http://www.xe.com/ucc/convert.cgi?Amount=1.00&From=USD&To=INR