In 2018, the RBI issued a circular prohibiting all regulated entities (such as banks and financial institutions) from dealing with or providing services to individuals or businesses involved in cryptocurrencies.
However, this circular was struck down by the Supreme Court of India in March 2020, which lifted the ban and allowed banks to provide services to cryptocurrency exchanges and traders.
In June 2019, a draft bill titled "Banning of Cryptocurrency and Regulation of Official Digital Currency Bill" was proposed by the Indian government, which proposed a complete ban on all private cryptocurrencies in India.
However, this bill has not been passed yet, and there has been no official statement from the government regarding the status of the bill.
In 2021, the Indian government hinted that it may introduce a new regulatory framework for cryptocurrencies, which would classify cryptocurrencies as an asset class and regulate them accordingly.