‘Money moves in a web of transactions and payment addresses keep changing for offshore companies, which requires heightened monitoring measures.’
Kindly note the image has been posted only for representational purposes. Photograph: Kind courtesy SAIYED IRFAN A/Pixabay.com and Pixabay/Pexels.com
The ministry of finance and the ministry of electronics and information technology have informed banks and fintechs that a transition period will be provided to allow systems and infrastructure to adapt once the rules under the newly enacted Online Gaming Act, 2025 are in place, a senior government official said on condition of anonymity on Friday.
“The stakeholders talked about a possible transition timeline, which will begin once the rules and guidelines are notified,” the source said.
“Since the existing infrastructure will need to be mapped and upgraded to meet the requirements of the new framework, timelines will become important,” the source explained.
The senior officials from the finance ministry and MeitY met representatives of the leading banks and fintech companies on Friday to draw up the implementation road map for the newly enacted Online Gaming Act, 2025.
The meeting was co-chaired by the secretaries of the Department of Financial Services and Meity in New Delhi.
Senior government sources further said that the initial discussions held with stakeholders on the new Act were “only preliminary” in nature, with no concrete decisions taken so far.
Officials emphasised that there will be clarity on compliance requirements and monitoring mechanisms after the rules are notified.
“At this stage, there is nothing specific, as the Act is yet to be notified. A clearer picture will emerge only when the rules are issued, and those will specify what is expected from different stakeholders,” a senior government source said.
According to the source, the purpose of the meeting was to provide participants with a basic understanding of the provisions of the Act and the intent behind it.
The deliberations centred around how monitoring systems may need to be designed to ensure that transactions prohibited under the law are effectively prevented.
“The discussion was mainly to share a background on its intent, possible controls, and the kind of checks and balances that could be considered for monitoring money flows.
“Nothing has been finalised yet — it was a very quick, preliminary meeting,” the source added.
Officials indicated that the real operational clarity, including roles of banks, financial intermediaries and other stakeholders, will be detailed in the rules once they are notified.
Until then, discussions will remain at a preparatory stage.
Parliament passed the Promotion and Regulation of Online Gaming Bill, 2025, on August 22, with the legislation receiving Presidential assent the same day.
The law prohibits all forms of real-money gaming and requires financial institutions to block payments to banned platforms.
Another source further added that the agenda included strengthening risk protection and transaction monitoring by payment players, amid a projected rise in users migrating to offshore entities not bound by Indian law.
“Fintechs can track how money moves in the system and if there are patterns.
“Money moves in a web of transactions and payment addresses keep changing for offshore companies, which requires heightened monitoring measures,” a person with knowledge of the matter said.
Fintech industry participants said that refunds and withdrawals have already been enabled for merchant partners, adding that the process will be gradually ramped up.
Feature Presentation: Ashish Narsale/Rediff
