MC EXCLUSIVE Online gaming ban: Govt, banks and fintechs meet on Aug 29 to draw up plan to implement new law

The meeting will aim to iron out the operational and regulatory challenges

Senior government officials will on August 29 meet bank and fintech company representatives to draw the implementation roadmap of the online gaming law, which was passed by Parliament less than a week ago and bans all forms of real-money games, a government source has said.

The Promotion and Regulation of Online Gaming Bill, 2025, which was passed by Parliament on August 22, received Presidential nod the same day. The law requires financial institutions to block payments to banned platforms.

“The secretaries of financial services and MeitY will hold a meeting with leading banks and fintechs on August 29 to discuss the operational rollout of the Online Gaming Act, 2025,” the source told Moneycontrol.

The discussions are expected to centre around steps to curb money flow, ensure compliance with anti-money laundering norms and facilitate consumer refunds from gaming wallets, the source said.

This will be the first major meeting between the government and the financial sector after the passage of the bill, which has a direct bearing on fintechs, payment gateways and millions of users holding money in gaming platforms.

The meeting will also likely discuss how banks and payment providers can support permissible formats such as e-sports and social gaming, while simultaneously guarding against illicit money transfers, the official said.

“The financial ecosystem will be central to ensuring that the ban on real-money games is effectively enforced. Refunds to users, compliance monitoring and preventing circumvention through alternative payment channels are areas where banks and fintechs will have to step up,” the source added.

The talks will cover financial provisions under the Act, including the cessation of transactions linked to money games, blocking deposits, and coordinating refunds for wallet balances.

They will also examine compliance with anti-money laundering and counter-terror financing rules, ensuring banks and fintechs can monitor and report suspicious activity.

Support to e-sports

Another focus area is expected to be the transition to permissible gaming models such as e-sports and online social games, with discussions on how financial institutions can support payments and monetisation for licensed platforms.

At the same time, consumer protection will remain a priority, with banks tasked with setting up clear refund mechanisms and safeguards to protect user funds, the source said.

The meeting will aim to iron out the operational and regulatory challenges, ranging from halting money flows to banned platforms to protecting consumers and building a viable framework for alternative gaming models.

Online Gaming Act

The online gaming act bans real-money games, prohibits related advertising, and empowers penal action against violators. It also details a National Online Gaming Commission to oversee compliance, licensing and the promotion of permissible formats such as e-sports and social gaming.

While bringing in the bill, the government had flagged concerns about money laundering and terror financing risks linked to real-money gaming platforms, warning that such apps were being misused as conduits for illicit fund transfers, prompting the Centre to tighten oversight.