They are not against the Blockchain technology, but they are against cryptocurrencies that may cause bad effects on economy (as they think) as well as national security. However, there might be several other ways to avoid these bad effects rather than banning or limiting people transacting with cryptos.
RE: India: Update On Case Against RBI For Banking Restrictions To Cryptocurrency Exchanges
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India: Update On Case Against RBI For Banking Restrictions To Cryptocurrency Exchanges