please be clear, accounts are limited due to people activities, not due to card verification. BTW card verification is only part of the process, some time you need proof of address, proof of ID, etc..
IT works for Indian account, but as vididong suggested its high risk if they ask proof in future for any transaction.
India Debit Cards aren't allowed to verify Indian Paypal a/c. And adding VCC can be a heavy risk in case your a/c gets limited then they will demand CC Documents which you'll be unable to produce. Looks like you have no option left. So, go for a VCC and make sure its Indian and not from US or other countries. At least verify your a/c with your bank a/c and withdraw all the Cash.