India hasn’t banned cryptocurrencies, RBI is a banking regulatory body and controls the monetary policies of India, but it is not a legislative body. It can set directive regulations for the bodies that come under its defined authority, but cannot control or penalize other businesses or individuals.A law to ban the use or trade of cryptocurrencies in India has to come from either the elected governments (whether central or state) or the judiciary.
Reserve Bank of India issued a press that had a directive for withdrawing support to virtual currency businesses.