Paypal REST API: Payouts API giving error INSUFFICIENT_FUNDS in sandbox - paypal

Question

I am trying to test the payouts API using the Node.js SDK for paypal and the example they have provided on Github. Here is the code for the same:
"use strict";
let paypal = require('paypal-rest-sdk');
const bluebird = require('bluebird');
paypal.configure({
mode: process.env.PAYPAL_MODE, //sandbox or live
client_id: process.env.PAYPAL_CLIENT_ID,
client_secret: process.env.PAYPAL_CLIENT_SECRET
});
bluebird.promisifyAll(paypal.payment);
bluebird.promisifyAll(paypal.payout);
function sendMoneyToParticipant () {
const sender_batch_id = Math.random().toString(36).substring(9);
let create_payout_json = {
"sender_batch_header": {
"sender_batch_id": sender_batch_id,
"email_subject": "You have a payment"
},
"items": [
{
"recipient_type": "EMAIL",
"amount": {
"value": 0.90,
"currency": "USD"
},
"receiver": "redacted-email-address",
"note": "Thank you.",
"sender_item_id": "item_3"
}
]
};
const sync_mode = 'true';
return paypal.payout.createAsync(create_payout_json, sync_mode)
}
PaypalAPI.sendMoneyToParticipant().then(result => {
console.log(JSON.stringify(result, null, 2))
}).catch(console.error)
I created the sandbox account myself and added $1000 during account creation step. However, I am still getting following as the response
{
"batch_header": {
"payout_batch_id": "78AMS3QCSQTBE",
"batch_status": "DENIED",
"time_created": "2017-05-28T07:38:51Z",
"time_completed": "2017-05-28T07:38:52Z",
"sender_batch_header": {
"email_subject": "You have a payment",
"sender_batch_id": "618ak0vozjwwhilik9"
},
"amount": {
"currency": "USD",
"value": "0.9"
},
"fees": {
"currency": "USD",
"value": "0.25"
}
},
"items": [
{
"payout_item_id": "F2XACBBTKRXK2",
"transaction_status": "FAILED",
"payout_item_fee": {
"currency": "USD",
"value": "0.25"
},
"payout_batch_id": "78AMS3QCSQTBE",
"payout_item": {
"amount": {
"currency": "USD",
"value": "0.9"
},
"note": "Thank you.",
"receiver": "mandeep.s.gulati#gmail.com",
"recipient_type": "EMAIL",
"sender_item_id": "item_3"
},
"errors": {
"name": "INSUFFICIENT_FUNDS",
"message": "Sender has insufficient funds",
"information_link": "https://developer.paypal.com/docs/api/payments.payouts-batch/#errors"
},
"links": [
{
"href": "https://api.sandbox.paypal.com/v1/payments/payouts-item/F2XACBBTKRXK2",
"rel": "item",
"method": "GET"
}
]
}
],
"links": [
{
"href": "https://api.sandbox.paypal.com/v1/payments/payouts/78AMS3QCSQTBE",
"rel": "self",
"method": "GET"
}
],
"httpStatusCode": 201
}