Will bitcoins be recognized by the Indian Government ?
Bitcoin is legal in India. I mean, although they have not declared it legal but they have also not made it illegal. You can still invest in or buy Bitcoin. Only the banks in India are prohibited to deal in cryptocurrencies. This was, in fact, quite expected as banks have never shown a positive attitude regarding cryptocurrencies. But this does not mean that it is illegal in India.
Bitcoin is not legal at the same time it is not ilegal in india. Many people in India now use bitcoin, they earn money through bitcoin. It gives job to many people who have jobless. It fullfill many people basic needs. Just RBI warns the bank to control the tarnsactions of the people who made it through bitcoin. It gives three months warning period to the people who deals with the bitcoin. We cannot predict whether it is going to be continue or not. Lets wait and see the changes.