"This video -- which is widely available on the web -- is clearly within our guidelines and so will stay on YouTube," a spokesman said in a statement.
"However, given the situation in Libya and Egypt, we have temporarily restricted access in both countries. Our hearts are with the families of the people murdered in yesterday's attack in Libya," he added.
India, however, is likely to ban on Internet a controversial film deemed offensive to Islam that has sparked anti-United States protests.
The home ministry has forwarded a request of the Jammu and Kashmir government to block all web pages where the film is available to the director general of the computer emergency response team, India for
"The DG CERT-In is looking into the matter and in all probability the web pages will be blocked soon," a home ministry official said.
Angered by the anti-Islam film, protesters stormed the US consulate in the eastern city of Benghazi in Libya on Tuesday, killing American ambassador Chris Stevens and three other Americans.
There was similar attack on the US embassy in the Egyptian capital Cairo on Tuesday night.
Protesters on Thursday stormed the US embassy compound in Yemen capital Sanaa and burned the American flag.
The government has already beefed up security at US embassy in New Delhi and four of its consulates -- Mumbai, Kolkata, Chennai and Hyderabad.
The five US diplomatic missions are considered 'high risk' category buildings and are being provided round-the-clock security including monitoring of ingress and egress of every individual.