Yes it is a big problem. One we have to wait until Paypal auto withdraws funds and sometimes it does not happen daily. Customers have to keep waiting as a result and we really have no explanation to offer. But more importantly, I am unable to offer any refund if a customer asks for a refund the very next day after purchase, due to Paypal holding funds. I don't really wish to refund out of my pocket while Paypal holds my money for an indefinite period of time. At least Paypal should offer an option to refund customers from Paypal balance in such cases as we cannot add funds to Paypal via an Indian bank or card
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