Local funds transfer works the best for me. I receive the amount within 48 hours after Upwork processes it and I don't have to pay any bank transfer fees. Exchange rate offered by Upwork bank is slightly lower than the actual rate, so no complains there as well.
Paypal commission/ transfer fees is a major pain. Hence I avoided it. Also it takes longer for the actual transfer, speaking from my past experience.
(I am speaking from an Indian freelancer prespective)
Yes you are right Local funds transfer is the best for Indians but I am facing problem with SBI (State Bank of India).
When I am setting up LFT Iam using correct IFSC code of my SBI bank account but the message from upwork is Bank Not Found. Why? do you have any idea.
Which bank you are using for LFT.
Waiting to hear from you.