It will be interesting to watch as what will be the reaction of the government and RBI on such ATM . Will they continue to allow in rest of India or will they curb this and ask them to remove it is what needs to be done as it could be again a election point for the parties.
I personally feel that the Indian government would not have much of a choice if the US rules in favor of cryptocurrency. This is mainly because India and US have a good relationship which makes it more likely that India would adopt cryptocurrency in the likely event that the SEC rules in favor of cryptocurrency. Think of them as 2 brothers who want to see eye to eye. It isn't necessary they will follow each other every step of the way but the chances do increase significantly.