For Indian Paypal users, it is impossible to transfer money to someone else's account or make a payment online using your Paypal account without a credit card. This is due to a regulation enforced by RBI (The Reserve Bank of India) around April this year. Without a credit card, Indian Paypal users can only receive money (funds) from others and can't purchase anything online with their Paypal balance!
You can even switch to a different (though quite good too) service, Moneybookers.com (soon to be known as Skrill.com) just in case you don't want to use a credit card (necessary for Paypal). I've been using it ever since I came to know of the various issues for Indians associated with Paypal (Can't spend your balance online, have to withdraw funds within a week, can't receive more than $3000 at a time etc.)
Why should you get an ICICI Bank Credit Card for Paypal?
The most important reason is the ease with which you can get a Credit card from ICICI. All you need to do is make a fixed deposit online (you need to enable online banking for this) or by going to one of their branches. Then you should ask for an Instant Credit Card based on your fixed deposit, or if you made the deposit online you get the choice of a credit card when creating the fixed deposit account.
You can see the interest rates for the fixed deposit here:
Now, you can read about the ICICI Bank Instant Credit Cards obtained against a fixed deposit here:
http://www.icicibank.com/Personal-Banking/cards/Consumer-Cards/Credit-Card/all-cards.html.
You may also get a credit card from other banks like SBI (State Bank of India) or HDFC Bank if their schemes suit your needs better.
