When you withdraw money from Paypal in a foreign currency, they will levy a 2.5% conversion fee on the prevailing foreign exchange rate.

That’s fine but try calculating the exchange rate using the PayPal currency converter and the result may surprise you.

paypal-currency-conversion

For me it says that 1 USD = 0 INR inclusive of the Paypal exchange rate fee. Fortunately, this bug doesn’t come into effect when PayPal performs the actual currency conversion but you may still want to confirm that.

Related: Online Currency Converters