can i trasfer money from my liberty reserve to my bank account?

Unfortunately you can't do it directly. You should done it via exchangers, for example, with the one that listed here: http://www.libertyreserve.com/en/exchangers Or you may try to invest your Liberty Reserve money on an elite/legit site, and then cash it out via Paypal.

Not at all, For transfer amount from LR to bank account you may use some trusted currency exchange service provider. Well i am also from indian i give some tips you may use your LR amount to invest some site which accept LR as well as Paypal, So when you reach the payment your amount transfer to paypal account and than your indian bank account. Now all depend upon you because the exchange rate are very high, and only Paypal payment processor is one which transfer your fund automatically to your link bank account with a nominal charges or fees.