Its a contract where they give money in exchange for basically nothing.

It may be reasonable for pocketbase to refuse, but i have trouble seeing floss fund being unethical or in the wrong when we're talking about giving away money for nothing. Especially when the ask is just fill out the paperwork for a wire transfer, the world standard for sending money internationally.

Don't think escrow is possible because of KYC requirements, then again the regulations in India might be different.