Yes you can use debit card with Paypal! Just as a coincidence i just verified my CC on Paypal 15 mins ago! Debits Cards have different process! Just create an account and you would get to know. Registering is free! They charge $1.95 for the validation which is later added to your Paypal balance!
Debit Card do work, but I doubt a SBI Metro type card would work..
I guess, the card, debit or credit, needs to be internet enable, meaning it needs to have that CSV code (3 or 4 digit) printed on the back side and issue via recognized banking network, like Visa / Master Card / American Express ..