Indian webhosting company insists on Paypal payment

In an indication of how the indian internet sector operates, an indian webhosting company Byte* is insisting that indian customers make their payment using Paypal. RBI has blocked Indian companies from using Paypal for making payment within India, yet the indian webhosting company is insisting that they customers only pay using Paypal.
For Indians Paypal will be more expensive, because the Paypal fees are almost 10% of the total amount, (more for smaller amount) wherein for bank transfer, the customer will receive the entire amount.
However, due to unknown reasons the south kanara, karnataka web hosting company continues to insist on Paypal payment from Indian customers, flouting RBI regulations, prefering to lose a customer.