PayPal India has now made mandatory to submit your PAN card details to withdraw funds from your PayPal account. If you have not yet submitted your PAN card details in your PayPal account, you cannot withdraw funds from your PayPal account.
Earlier there was no such restriction for withdrawing funds. Many Indian PayPal users are student, and do not have PAN card. But now they will have to get a PAN card as early as possible. Getting a PAN card is not that tough, and fee is only Rs.94.00