India's central bank had called for a complete ban on cryptocurrencies in meeting of board of directors,; however, the government overlooked this demand due to the large number of cryptocurrency consumers and strong demand by industry to legalize it.

The government was drafting a bill to possibly approve it with a partial ban, and legalize it as asset.

That bill was to be introduced in the winter session of Parliament, last day was Friday (17 Dec), but it was postponed due to uproar in parliament which may effect result of upcoming elections in 5 states, mainly Uttar Pradesh (a crucial one).

Right now the status of cryptocurrencies in India is neither legal nor illegal.