Well My friend tried to send me Money and this error shows up "We're sorry. We're not able to complete personal payments to account holders in India at this time." I know it says "At this time" But What do you think? Is it something else bugging?
Yes, personal payments are already stopped for Indian users. And I dont think it will ever be reinstated again.
i have send payment owed to one of my friend in india but i got no error. Do not know about your matter!
Basically PayPal Escapes from Indian Tax dept saying a large amount as Personal Payment and so they stopped it! Hope So!