This is not a ban, and has been in the works for a long time with at least one six-month extension granted that I know of.[1] What the RBI has done is introduce AFA (additional factor authentication) for recurring transactions.[2]

But this is India and we like to do things one day before any deadline expires. That explains the panic.

[1] https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=1205...

[2] https://support.stripe.com/questions/important-updates-to-rb...