Due to paypal denial of india funds transfers ;recently Xoom.com also denied to withdraw paypal funds to indian bank .
I recently called up their support and mail them about this issue.
This is what i got in reply.
Response (Shiva Prasad) – 03/09/2010 03:14 PM
Thank you for contacting Xoom Customer Service.
Please be informed that currently we are not allowing intra India transactions through Pay pal due to current regulatory restrictions. We would request you to get back to us after 15 days to know more details about Pay pal transactions.
Please let us know if you have any other questions.
So we need to wait more to use services of xoom in india for paypal.
Meanwhile on March 3 Paypal Resumed the Bank withdraws to indian banks, just mention the purpose for which you get this money.
I have made a withdraw request , paypal is giving 44.06 rs for a $.
I will update the blog about the situation soon.