Okay, first of all, it's just a project law, so it's not the right time to panic just yet. There's still a chance it won't come into force, right?
If bitcoin was atleast marketed in a way that it will benefit the central bankers and state then it would have had some chance at survival. India with its 1.4 billion population will be out of this crypto revolution , while the rest of the world be happy with your crypto experiment.
Secondly, Bitcoin is not very beneficial to central bankers, no matter how you market it. But, why try making a useful coin out of Bitcoin when there already are cryptos like Ripple, centralized and willing to work with banks? And what's this project law's stance on Ripple, by the way?
Moreover, if banks want to benefit from blockchain, they can simply issue their own tokens.
But without Bitcoin being decentralized I don't see how the crypto revolution could happen. Instead, it would be a minor improvement of the same system that now allows not to fake money and to spend less of fees.