In India, Bitcoin is not a legal tender. But it is not explicitly termed as illegal.
Is this discussion not done yet? I'm not sure that last time there are news that are guaranteeing that bitcoin isn't illegal in India. They are still confuse on where they will put bitcoin into their jurisdiction whether it's not a legal tender or not as long as they are not finalizing their certain law about bitcoin then Indians shouldn't worry about it.
What is the reason for such a stand by Government? what are its implications?
Taxation, illegal use, protection, etc.