In an interview of public TV channel finance minister Arun Jaitley have said that he have announced "bitcoin is not a legal tender" but did not banned it. There is a committee which is investigating the matter and will come up with a major decision, which will be declared latter . Also government want to discourage people to investing in bitcoin.
I hope that bitcoin crisis on India would be worked out the same way in our country. Here in Philippines, bitcoin was not banned, but the government and the central bank is finding a way to regulate it. They are not encouraging people to invest on it since it is an unsecured investment, however, they did not directly tell people not to invest on it. Maybe in the future, the government will see cryptocurrency as a new way to help people do transactions with ease and convenience.