My own view..
The Reserve Bank of India (RBI) issued a circular in April 2018 advising all organizations under its jurisdiction not to trade cryptocurrencie or provide services to assist anyone in dealing with or settling them. I think that was the genesis of the whole issue

Then, sometime in 2019, a government group proposed banning cryptocurrencies in India, with anyone dealing in digital currencies facing a prison sentence or severe penalties. The Supreme Court overturned this in 2020, allowing banks to process cryptocurrency transactions.

Recently, Governor Shaktikanta of the Reserve Bank of India (RBI) has stated that the RBI is working on a digital currency.

Looking at all this things, I feel there is something going on underneath within the government is is unclear to the public. They are just trying to bring up something to back their idea. But I don't think India will really be banning cryptocurrency.