Govt Tightens Online Gaming Rules, Empowers Banks to Block Transactions

The Central government has introduced the Online Gaming Rules, 2026, directing banks and financial intermediaries to halt transactions linked to certain online games when instructed by regulators. The framework, overseen by the Ministry of Electronics and Information Technology (MeitY), introduces mandatory “user safety features” such as age verification, time limits, parental controls, grievance systems, and counselling support. These safeguards are designed to align with the risk level of each game, while also ensuring fair play and platform integrity.

A key provision grants the Online Gaming Authority the power to instruct banks, financial institutions, and payment intermediaries to suspend or block transactions tied to real-money gaming platforms deemed non-compliant. Once such directives are issued, intermediaries must immediately stop payment flows and provide necessary data to regulators. According to MeitY Secretary S. Krishnan, financial entities facilitating such transactions could be considered in violation of the law, with their responsibilities clearly defined under the new framework.

The rules also establish a “litmus test” to classify games as real-money gaming, based on factors such as entry fees, monetary rewards, and the convertibility of in-game assets into real-world value. Service providers must disclose safety measures and maintain grievance redressal systems, with unresolved complaints eligible for appeal before the authority within 30 days. Registered platforms will receive a digital Certificate of Registration valid for up to 10 years, while non-compliant operators face strict financial and operational restrictions under the strengthened regulatory regime.

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