Forget about VCC, enter your PAN number and add your bank account there.
You'll receive two small deposits of about Rs1 in your bank. Check your statement and enter the deposits in the confirmation box , you'll find that somewhere in your Paypal account.
And then you just need to enter your account name , account number, bank name and IFSC code to withdraw.
It should arrive in 2-3 days and can take upto 7 days depending upon your bank.
Re: Bolded part - I don't think you even have to do that once you've used the bank account for verification. It is automatically added to your paypal account (the bank details).
I was telling steps for verification only. And for first time he needs to enter details, next time he wont need to enter anything though.
COMPLETE GUIDE
http://www.labnol.org/india/interesting/withdraw-paypal-money-to-bank-account-in-india/1704/
http://www.technospot.net/blogs/withdraw-money-from-paypal-to-indian-bank-accounts-now/