"Were sorry. Were not able to complete personal payments to account holders in India at this time."
That is what PayPal.com says to my clients who are trying to send me a payments for my services. This first cropped up yesterday, 4th Sept 2013. I haven't been expecting any payments before that, so I am not sure how long this has been going on. But this again happened with another client about 30 minutes ago.
There is just one reference to this problem being faced by Indian receivers for the last one month. But no particular solution is mentioned on that page. It was reported on Aug 17, and can be seen here.
I guess I should be sending an email to PayPal. Will report the results soon.
Oh, in another news, the latest policy update mentions that PayPal is increasing international fees for India from 3.9% to 4.4% plus fixed fee, from September 10, 2013. If you know any other payment processor that I can use instead of PayPal.com, please let me know!