India’s MeitY mandates transaction blocks on banned online gaming platforms
→Payment teams at banks must block transactions to authority‑banned gaming platforms
Change
India's Ministry of Electronics and Information Technology (MeitY) has implemented a framework that confines mandatory registration to competitive e‑sports, requires the designated authority to decide game determinations within ninety days of referral, and binds banks and payment firms to block financial transactions to platforms the authority bans.
Why it matters
Determination of a game's regulatory status is limited to three triggers: the designated authority taking up a title, a company seeking regulatory clarity, or India formally notifying a category. Platforms with real‑money elements must be evaluated on entry fees, expectation of winnings, revenue models and in‑game asset monetisation, and eligible platforms are required to implement user‑safety features including fair‑play systems and cybersecurity protections.
Implications
- — Online‑game platform operators offering real‑money features must obtain a determination or change monetisation immediately — titles determined as real‑money risk being banned and will have financial transactions to them blocked by banks and payment firms.
- — Payment‑processing teams at banks and payment firms in India must implement transaction‑blocking controls immediately to stop payments to platforms listed as banned by the designated authority — continued processing of payments to banned platforms will contravene the enforcement role assigned under the framework.
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Source
View on Economic Times