It's not far off an actual ban, they are basically making sure no-one that is legitimate and is in the financial industry is able to offer crypto-based services to other companies or consumers. They've killed the "supply" of bitcoin essentially, making it impossible for consumers to get their hands on it (without turning to dodgier methods), and making it impossible to operate a business on the blockchain.

They don't have the power to completely ban bitcoin, it's a decentralized currency and they can't control it. But they can control how people get involved in it, and it's actually pretty shitty how they've resorted to this method.

There is an old saying, where that if you ban something, you are only going to create a bigger underworld market. Better to control it, tax it, profit off it. Looks like India is taking the ban route, I wonder what the future leads for the financial sector.