To be fair, there are a few options out there (see 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.

Try these guys: http://www.ewayinc.co.in/.

I've used them in Australia and they aren't bad. It was for payment processing of a pre-integrated shopping cart so I can't say much beyond it works, fees are straightforward and they answer the phone and will answer questions (especially sales questions) quickly via chat.

Wirecard is a good option for Europe and parts of Asia. Not sure if they support India. Recurly also supports Wirecard APIs via the ActiveMerchant API.

Here's a list AM supports: http://activemerchant.rubyforge.org/

If you find one out let me know, looking for gateways that will deal with banks in Nepal and India.