There are reports all over the web complaining that the Paypal withdrawals to Indian Bank accounts between Feb 19 to Feb 24 are not being processed.
I myself made a withdrawl on Feb 27th which is not yet completed.

Paypal Indian Bank withdrawal Problem - Payments Not Processed

Electronic transfers to your Bank account usually take 5-7 business days to process. Holidays and weekends are not recognized as business days for most banking facilities, which may result in a delay in your banking transactions.
Usually, for me it takes about 2 business days to get the money.. but this time it is not yet completed even on the seventh day.

What about you guys ? Did you experienced any problems with Paypal withdrawl recently? If you got any success in the transaction, please do comment here because the information can be helpful to many other Paypal users with this problem.