Its nothing else but a rumor that is spread for the purpose of dropping Bitcoin's price and take advantage of it.
There is no news about the government of India announcing anything like that. Just because the banks have banned or freezed some accounts, it doesn't mean trading gets banned. Bitcoin gets banned when governments call for it, not if the banks take any step for their own good. And trading is banned when the exchanges are banned, not if some accounts are banned.
Indian Prime minister "Narendra Modi" went to the extent of banning/removing all the old currency notes in India in November 2016, just to kill black money and tax evasion.
Currency "notes" and Digital Currencies are two different things. He never mentioned anything about banning crypto or digital currencies from India. His actions were only against fiat currency of India to finish money laundering, and not against Bitcoin or other digital currencies.