Paypal stop sending personal payment for Indian Users.

• If you are a Paypal User,based in India – you cannot send or receive anymore Personal Payments.
  All payments must be sent along with the sender`s Shipping Address
  In simple words, you cannot Send money to Indian Paypal account holders or Receive money to your Indian Paypal Accounts using the ‘Services’ function found in Send Money tab.
• Paypal has also given a solution – Ask the sender to resend payment using the ‘Goods’ function & must mention their shipping address.Similarly if Indians intend to send Personal payments, you have to choose Goods & mention your Shipping Address.
• I hope, This is done to curb the growing number of scams involving Indian paypal accounts using personal payments.

One of Indian Paypal user got this reply from paypal after his/her payment get back to buyer.

We’re glad that you’ve come to PayPal for receiving money.
Unfortunately, we’ve had to stop allowing personal payments to be sent
to and from India.

Any personal payments that have been recently sent to you from India
have been automatically reversed, and the money returned to the sender.

If you’re receiving money for a personal payment, such as gift, then we
have requested that the sender find another way to pay you until we’re
able to restore personal payments to and from India.

If this was a payment for a purchase of goods or services, and not a
personal payment, then you may contact the buyer and have him or her
resend the payment as follows:
Have the buyer log in to their PayPal account.
Click “Send Money.”
Enter their email address in the “To” field.
Enter the amount of money they wish to send you, and choose the currency
from the list.
Select “Goods”, “Services”, or “eBay Items”, depending on the purchase.
Click “Continue.”
We are trying to resolve this issue as quickly as possible and we’re
sorry for any inconvenience.