Currently you can not withdraw the money from your PayPal account to any of your Indian Bank.
This facility is disabled by PayPal because of the questions raised from Indian Government about remittance terms and conditions. PayPal is saying that it will restore the service within few days.
If you have large amount of money in your PayPal account, it is advised that you should not withdraw the money to your local Indian bank for few days, your transaction will be in air in this period. It is better to wait for some time. You should withdraw money only after clearance given by PayPal at here.
If you are in urgent need of your PayPal money, you can use www.xoom.com
xoom.com will transfer your PayPal money to your bank in India by taking some fee. It may ask verification by calling at your mobile phone number. The money transfer from xoom will take around 24-48 hour. It is better to transfer money in two times rather than single