I think this is not an official ban from the government but only hate action from banks against bitcoin, although one day the Indian government will ban the use and ownership of bitcoin. People can still use their bitcoin in cyberspace without having to use intermediaries from third parties like banks and exchangers.

India is going a step further than most countries in cracking down on peer-to-peer money
In the legal challenge before the Supreme Court, the RBI said Bitcoins cannot be treated as currency under India's existing law that mandates coins to be made of metal or exist in physical form and stamped by the government. The court directed RBI to consider representations by cryptocurrency platform providers