But don't you think that it would be harder to sell all the crypto holdings for INR and then hold it in a bank.
We would end up losing more in taxes instead. May be we can do it with ~10% of the holdings but rest of it would be better in stable coins in a non-custodial wallet instead.
You should not sell too much that tax attention is driven all towards you. I prefer not selling at all during the times of high taxes and only keeping myself limited to buying gift cards to purchase stuff. For now I think the future price of bitcoin is going to multiple times of what it is even today, so holding BTC on the other hand is also a lucrative option.
But definitely not going to these interest schemes on exchanges. They just want liquid cash for their exchange which is why they run such schemes.