The central government has ordered banks and financial intermediaries to stop transactions related to certain online games when the regulator directs them to do so under the newly introduced online gaming rules of 2026.
A key highlight is the introduction of “user security features” as an enabler. These include safeguards, technical, procedural, operational or behavioral, tailored to the level of risk of each game.
Examples include verification and age restrictions, time limits, parental controls, user reporting systems, advisory support, and mechanisms to ensure fair play and integrity.
The authority will have the power to order banks, financial institutions and payment intermediaries to stop transactions involving games classified as real money gaming.
Once such instructions are issued, intermediaries will be required to suspend or block the related payment flows and provide necessary information and assistance to the relevant authority.
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This provision equips the regulatory body with a strong financial enforcement mechanism to curb the operation of non-compliant gaming platforms.
Any orders issued by the authority can be appealed to the Secretary, Ministry of Electronics and Information Technology (MeitY) within 30 days.
Service providers will also have to disclose their user security measures and internal complaint handling systems when applying for classification or registration.
As reported by ANI, S. Krishnan, Secretary, Ministry of Electronics and IT (MeitY), told ANI that banks and financial institutions that promote online gambling or facilitate related financial transactions will be considered violators of the new regulatory framework that will come into effect next month.
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He outlined the compliance responsibility now placed on the financial sector, noting that the roles of banks and financial institutions have been clearly defined in terms of allowing or blocking such transactions.
“Banks and financial institutions, as you know, under the law there are provisions that say that anyone involved in promoting this activity or providing financial transactions for such activity will also be guilty of an offense under the original law. So the role of banks and financial institutions has been clarified in terms of what is expected of them in terms of facilitating this. Otherwise, there are no financial transactions related to social games, games for money or any issue. whether the game was intended as an online party game or not,” Krishnan said.
The new rules set a “litmus test” to decide whether an online game qualifies as a real money game – something the parent law expressly prohibits. This test can be triggered in three scenarios: when the authority itself initiates the review, when the provider offers an eSports format, or when the government designates certain categories of social games based on factors such as the nature, volume or value of the financial transactions involved or the need to allocate funds to participate.
Several factors are taken into account for this determination. These include whether players must pay fees or deposit money at any stage, whether a monetary reward is expected, how the game’s revenue model is structured, and how in-game rewards or assets can be redeemed or converted to real value outside of the game.
Upon successful identification and registration, the Online Gaming Authority will issue a “Digital Certificate of Registration” with a unique registration number valid for up to 10 years.
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“Registered service providers are required to prominently display designation or registration details on the interface through which the game is offered, designate a point of contact, adhere to data retention guidelines and adhere to guidelines issued in connection with payment facilitation,” the official release said.
All online gaming service providers that offer social gaming or e-sports will be required to set up and maintain an active complaint handling system.
If the user is not satisfied with the provider’s response – or if their complaint is not resolved – they can refer the matter to the Online Gaming Authority of India within 30 days. The office will then try to resolve the complaint within 30 days.
(With input from agencies)
