I had my paypal account limited due to some reasons and now they are allowing me a withdrawal of funds from it. My question is that, can I get a checque for these funds or is it necessary to have a bank account with them?
It all depends on which country you are from and what is the mode of funds withdrawal that paypal supports for your country. Use this https://www.paypal.com/us/cgi-bin/webscr?cmd=_display-country-functionality-outside to check
I guess checks needs to go through the postal service and that can take several days to get to process and get to you and there is the element that it would get lost in the mail. Bank transfers are secured, automated and probably lower cost to you and to top it up, it is faster.
Yeah, it mostly depends on country. For some countries it is not allowed to accept money at all. So you have to check your terms or contact their support.