Now a days RBI (Reserve Bank of India) is asking PayPal to follow so many guidelines to keep an eye on the payment activities and money flow. Because of that, PayPal is issuing so many restrictions and limitations on PayPal India users. Earlier they stopped the bank withdrawal of money and then added purpose code to fill up at the time of withdrawal. Now they have some up with new restrictions like no PayPal balance, no transaction of more than $500, no payment from PayPal etc. If you are a webmaster working for clients from different countries or e-commerce site owner exporting or selling items on web then I can understand your problem these days. So this is the right time to checkout the alternative of PayPal to have a stable payment gateway.
Here is the list of 7 alternatives of PayPal payment gateway for users in India.
It is expected that Google Checkout will come to India very soon as Indian Android App developers can then be able to sell their apps thru checkout. If you are facing so many problems with PayPal, then you may try above alternatives as payment gateway.