To be fair, there are a few options out there (see http://www.pluggd.in/review-of-payment-gateways-in-india-297/ http://www.pluggd.in/review-of-payment-gateways

To be fair, there are a few options out there (see http://www.pluggd.in/review-of-payment-gateways-in-india-297/ http://www.pluggd.in/review-of-payment-gateways-in-india-297...) but from the quick research I did, they have really high transaction rates (upwards of 6%). If no better options exist, this might be an opportunity for an entrepreneur, though figuring out and complying around the laws might take some doing.