Right now I cannot say for sure is bitcoin legal in India or not. Indian authorities made thing very complicated during past few days
As of now it is not illegal, as per the existing laws. But the government is somewhat hostile to crypto-currency trading within the country. They are not banning it, just because they know that it is not possible without shutting down the whole internet.
As per the RBI statement they want the country's people to stop dealing with the crypto currencies within three months so maybe after that bitcoin may be banned in India.But bitcoin trading is going to be hard there now because wothout ban's involving we can't do crypto trades and face to face transactions are impossible for everyone.
I have a different assumption. When RBI announced its entities not to deal with crypto currencies, Jio has published a currency wallet as like Paytm. You must be aware of it. You must have been hearing a news that Ambani's son has formed a team to discuss on blockchain integration and in result of this, a new coin called jiocoin would be released. I assume Jio wallet will be used to convert the crypto into JIOCOIN and later exchange into fiats currency. Can you see the business moment here? As jio wallet should be in the market, Zepay and other Indian exchange are pre-warned not to deal with crypto currencies.