Union Government of India directed banks to block transactions linked to flagged online games under 2026 rules. Framework mandates safety features including age checks, time limits, parental controls and fair play safeguards.
The Union Government has instructed banks and other financial intermediaries to stop conducting transactions linked to certain online games whenever the regulator directs them under the newly introduced Online Gaming Rules, 2026.
A central feature of the framework is the inclusion of “user safety features” as an enabling provision. These measures must be tailored to the risk level of each game and can include safeguards covering technical, procedural, operational, or behavioural aspects. Examples mentioned are age verification and age-based restrictions, time limits, parental controls, user reporting mechanisms, counselling support, and steps to uphold fair play and game integrity.
Under the rules, the regulator will be empowered to direct banks, financial institutions, and payment intermediaries to halt transactions connected to games that are classified as real-money gaming. After receiving such directions, intermediaries will be required to suspend or block the relevant payment channels and to provide the regulator with the required information and assistance.
This mechanism strengthens the regulator’s ability to restrict the functioning of gaming platforms that fail to comply with the framework. Any order issued by the authority can be challenged through an appeal to the Secretary of the Ministry of Electronics and Information Technology (MeitY) within 30 days. Service providers seeking classification or registration will also have to disclose their user safety measures and their internal grievance redressal systems.
S. Krishnan, Secretary, Ministry of Electronics & IT (MeitY), said that banks and financial institutions that support online money games or handle transactions related to them may be deemed in breach of the new regulatory regime, which is scheduled to come into force next month.
He explained the compliance expectations for the financial sector, stating:
“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 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,”
The new rules also introduce a “litmus test” to determine whether an online game falls under the category of a real-money game something prohibited under the parent legislation. The review process may be initiated in three situations: when the authority begins a review on its own, when a provider offers an e-sports format, or when the government identifies particular types of social games to be assessed based on factors such as the nature, scale, or value of financial transactions involved, or the requirement for users to commit funds in order to participate.
To reach a determination, the regulator will consider multiple aspects, including whether players are required to pay fees or deposit money at any point, whether monetary rewards are expected, how the game’s revenue model operates, and whether rewards or in-game assets can be redeemed or converted into real-world value outside the game.
Once a service provider is successfully determined and registered, the online gaming authority will issue a “digital Certificate of Registration” with a unique registration number, valid for up to 10 years.
As stated in an official release, registered service providers must:
- clearly display the details of the determination or registration on the interface through which the game is offered,
- appoint a point of contact,
- follow data retention directions, and
- comply with any directions issued regarding facilitation of payments.
The release further notes that all online game service providers offering social games or e-sports must maintain an active grievance redressal system. If a user is dissatisfied with the provider’s response or if the complaint is not addressed they may escalate the issue to the Online Gaming Authority of India within 30 days. The authority will then attempt to resolve the appeal within the following 30 days.