Indian government to meet banks, fintechs on online gaming act
What's the story
The Indian government will hold a meeting with representatives from banks and fintech companies on August 29, according to Moneycontrol. The meeting will focus on the implementation of the recently passed Online Gaming Act, 2025. The law bans all forms of real-money games and requires financial institutions to block payments to banned platforms.
Discussion points
Who will attend the meeting
The meeting will be chaired by the secretaries of Financial Services and Ministry of Electronics and Information Technology (MeitY). It will discuss the operational rollout of the Online Gaming Act, 2025. Key areas of discussion are expected to include curbing money flow, ensuring compliance with anti-money laundering norms, and facilitating consumer refunds from gaming wallets.
Enforcement strategy
Financial ecosystem's role in enforcing real-money game ban
The financial ecosystem will play a key role in enforcing the ban on real-money games. This includes monitoring compliance, preventing circumvention through alternative payment channels, and processing refunds to users. The meeting will also discuss how banks and payment providers can support permissible formats like e-sports and social gaming while preventing illicit money transfers.
Regulatory framework
Key financial provisions under the Online Gaming Act
The meeting will also discuss the financial provisions under the Online Gaming Act, 2025. These include halting transactions related to money games, blocking deposits, and coordinating refunds for wallet balances. Compliance with anti-money laundering and counter-terror financing rules will also be discussed to ensure banks and fintechs can monitor/report suspicious activity effectively.
Future prospects
Transitioning to permissible gaming formats and consumer protection
The meeting will also focus on the transition to permissible gaming models such as e-sports and online social games. It will discuss how financial institutions can support payments/monetization for licensed platforms while ensuring consumer protection. Banks will be tasked with setting up clear refund mechanisms and safeguards to protect user funds, keeping consumer protection a priority.