The earlier ban was put in place after the Reserve Bank of India (RBI) had “repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated with dealing with such virtual currencies.”
The Internet and Mobile Association of India raised issues about the ban through the courts. After that, in July the Supreme Court of India reasserted the national ban for the moment, but said it planned to reconvene in September for further deliberations.
Currently it is reported that a finance ministry panel led by Subhash Chandra Greg, secretary in the Department of Economic Affairs, that is reviewing the case.
Some media have speculated that India is planning to issue its own “crypto tokens”, with these financial instruments uniquely being blocked from exchange with traditional currencies. While those close to the situation suggest that is not true, they do agree that India will want to manage things centrally.