Yes. You can send money by Paypal in India and withdraw them by asking Paypal India check. Even more important! You can now transfer money from your PayPal account to any of your bank account in India directly from the PayPal website.PayPal has also scrapped the withdrawal fees for electronic transfer if the amount withdrawn is more that Rs 7000 and a nominal Rs 50 for small transfers.f you have a indian Paypal account, then you can add the following indian bank accounts: 1  State Bank of India. 2  Bank of India. 3  Canara Bank. 4  Union Bank of India. 5  HDFC Bank. 6  ICICI Bank. 7  ING VYSYA Bank. 8  UTI Bank. 9  Standard Chartered Bank.