Paypal now supports Indian Banks! This would be cheered by web publishers who want to receive their payments instantly via Paypal
Paypal supports the following Banks
State Bank of India
Bank of India
Union Bank of India
ING Vysya Bank
You will have to provide the IFS Code which is usually on your Cheque Book and your account details
Charges for withdrawal are Rs 50 for amount less than 7000 and free for greater amounts!