India banned bitcoin when they found out government officials were taking bribes in cryptocurrencies.
This is pretty funny, like people never took bribes in India (just like many other places in the world) before bitcoin, right? 
If that is the real reason then politicians are even more stupid than what I thought because that just means remaining behind the rest of the world that will embrace this tecnology.China first banned bitcoin because people were using it to transfer money out of the country, as sending large amounts of money abroad, or leaving China with a lot of cash is prohibited.
Same as above, if that is the reason then it's stupid. Those who want to laundry money and/or make it leave their country will find a way for sure.