I don't think it's a FUD. The OP has used the word "may" in the statement and the news also says the same! Nothing has been decided yet on cryptos but it is true that India has stopped the banks to provide services to crypto companies! A court case in this matter is still ongoing. This is because the governemnt is negative about cryptos in India.

I won't be surprised if indian government may decide to impose a blanket ban on cryptos. It may be imminent or may be delayed. Even though such kind of bank is very hard to achieve, but it will discourage a lot of Indians from entering into crypto market.