I would advice you not to use VCC if you intend to use it for your paypal verification. If you check around the posts here, most people have their account limited because they use VCC for verification. It is not issued by any bank and the methods to obtain it is questionable.
of course VCCs are issued by a bank. The cards which have been sold here mostly were HDFC netsafe cards, but there are MANY other banks issuing VCCs. But you are correct: many accs become limited and can´t get unlimited because no statement can´t be provided to the VCC if you by from anyone and don´t use VCCs generated from your own bank account/credit card