The Supreme Court (SC) Tuesday refused to grant a stay on the restriction imposed by the Reserve Bank of India (RBI) in April on banks extending services to cryptocurrency-related entities, according to a report by Inc42.com.

A bench headed by Chief Justice Dipak Misra issued notices to the Ministry of Finance, Law, and Justice and Information Technology and the RBI.

The SC had earlier sought to club all the cases related to cryptocurrencies and had stated that an order would be passed on July 20. The date, however, was rescheduled on the Internet and Mobile Association of India (IAMAI) request citing the RBI order was to be effective from July 5.

"Once the deadline is over, exchanges will only be able to support crypto-to-crypto pairs. Thus, individuals who wish to buy cryptos with other cryptos would still be able to do that and be part of this global phenomenon," Ashish Singhal, the Co-founder, and CEO of CoinSwitch.co told the site.

"However, INR to crypto conversions would become challenging, as exchanges won’t be supporting the same, post the deadline," Singhal added.

Zebpay, a site for crypto-exchanges in India, released a circular asking its clients to withdraw their funds before the expiry of the deadline.

“As per a recent RBI action, banks have been told to discontinue banking services to those dealing with virtual currencies," the circular read, adding that while the industry would be challenging the decision legally, they cannot control the outcome.

"Hence, if you are holding any rupees, or depositing any rupees in Zebpay, there could soon come a time when we may not be able to honour withdrawal requests. Please continue only if you understand this risk," the circular further stated.

In a notification in April, the RBI had banned the buying of cryptocurrencies via banks or e-wallets in India, stating they "raise concerns of consumer protection, market integrity, and money laundering, among others."

RBI also said regulated entities providing such services would need to "exit the relationship within a specified time."