Remittance from Europe to India EUR - INR

Alright the problem is not as simple as it sounds. Let me explain.

I closed my German bank account after moving to India. The bank said they wouldn’t do the international transfer to my Indian account and so I gave them my ex German colleague/friend’s account to transfer the balance (~€10000) amount to and close the bank account for good. The colleague has moved to Italy since due to a new job. The bank account was negative interest rate and I didn’t close it before leaving because I was expecting security deposits from several service providers due to service closures. In hindsight, closing the account would have been a better option even if that meant loosing a few hundred euros.

When my colleague tries to transfer me the money from Italy, my Indian bank asks me for the purpose of this transfer. The government (RBI) guidelines don’t allow inward remittance from a non-relative. As soon as I give my bank the real reason, they return the funds to the remitter.

Peer to peer Paypal doesn’t work in India and we have tried another online money transfer service which didn’t work (it simply declined without providing a reason although I think at this point I can pretty much sense and understand their unwillingness). I haven’t tried all online remittance services but I don’t imagine a scenario where they can actually bypass the RBI rule.

Can I try the bankers check? Will that not pose the same problem?

Should I try cryptocurrency transfers? I don’t have any experience with them but it seems feasible on the first reading. This seemingly creates a loophole in the draconian RBI remittance mechanism, or am I missing something? I would really not go down the cryptocurrency road because of the new technology and a lot of volatility but am I left with any other options?