A panel formed by the government to look into crypto-currency does not seem to be in favour of banning it. Instead, it may suggest allowing crypto-currency with riders, ETNow reported quoting Cogencis.
On April 6, RBI through its notice titled Prohibition on dealing in virtual currencies, mandated banks, e-wallets and payment gateway providers to withdraw support for crypto-currency exchanges and other businesses dealing with virtual currencies (VCs) in India.
That's great and all, but I don't think it's very relevant to the current situation with respect to the current central bank circular. The bottom line is that it's not banned, the banking sector just rejects it. I don't think the panel allowing its use will make their central bank rethink their position, though I'd love to be wrong.
I'm very interested in what will come out of the hearing though. I hope we get a favorable result.