Online Gaming Rules 2026: Banks, Financial Institutions To Face Penalties And Must Block Payments To Real-Money Games

(MENAFN- Live Mint) The Central government has directed banks and financial intermediaries to halt transactions tied to certain online games when instructed by the regulator under the newly introduced Online Gaming Rules, 2026

A key highlight is the introduction of“user safety features” as an enabling provision. These include safeguards, technical, procedural, operational, or behavioural, tailored to the risk level of each game.

Examples include age verification and restrictions, time limits, parental controls, user reporting systems, counselling support, and mechanisms to ensure fair play and integrity.

The authority will have the power to instruct banks, financial institutions, and payment intermediaries to stop transactions associated with games classified as real-money gaming.

Once such directions are issued, intermediaries will be required to suspend or block related payment flows and to provide necessary information and assistance to the authority.

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This provision equips the regulator with a strong financial enforcement mechanism to restrict the operations of non-compliant gaming platforms.

Any orders issued by the authority can be appealed before the Secretary of the Ministry of Electronics and Information Technology (MeitY) within 30 days.

Service providers will also be required to disclose their user safety measures and internal grievance redressal systems when applying for classification or registration.

As reported by ANI, S. Krishnan, Secretary, Ministry of Electronics & IT (MeitY), told ANI that banks and financial institutions that support online money gaming or facilitate related financial transactions will be considered in violation of the new regulatory framework coming into effect next month.

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He outlined the compliance responsibilities now placed on the financial sector, noting that the roles of banks and financial institutions have been clearly defined in terms of either enabling or blocking such transactions.

"The banks and the financial institutions, as you're aware, under the Act, there are provisions which say that anybody who participates in promoting this activity or providing financial transactions for such activity will also be guilty of an offence under the original Act. So the role of the banks and the financial institutions has been spelt out as to what is expected of them in terms of facilitating this. There are no financial transactions relating to an online money game or an online social game, so there's no issue at all. Otherwise, they will have to examine whether the game has been determined to be an online social game or not," Krishnan said.

The new rules lay down a“litmus test” to decide whether an online game qualifies as a real-money game-something the parent law explicitly prohibits. This test can be triggered in three scenarios: when the authority initiates a review on its own, when a provider offers an e-sports format, or when the government flags certain categories of social games based on factors like the nature, volume, or value of financial transactions involved, or the need to commit funds to participate.

To make this determination, several factors are considered. These include whether players must pay fees or deposit money at any stage, whether there is an expectation of monetary rewards, how the game's revenue model is structured, and how rewards or in-game assets can be redeemed or converted into real-world value outside the game.

On successful determination and registration, the online gaming authority will issue a 'digital Certificate of Registration' with a unique registration number, valid for a period of up to 10 years.

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"Registered service providers are required to prominently display the details of determination or registration on the interface through which the game is offered, designate a point of contact, comply with data retention directions, and observe directions issued in relation to facilitation of payments," an official release said.

All online game service providers offering social games or e-sports will be required to set up and maintain an active grievance redressal system.

If a user is not satisfied with the provider's response-or if their complaint is not addressed-they can escalate the matter to the Online Gaming Authority of India within 30 days. The authority will then aim to resolve the appeal within the next 30 days.

(With inputs from agencies)

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