The Ministry of Electronics and Information Technology has asked banks and financial technology providers to ensure that gaming companies can process genuine transactions, including user refunds, vendor payments and tax payments such as Goods and Services Tax, a senior government official said.
“Some companies had flagged this issue. We have clarified to the extent that some of these legitimate transactions should be processed,” the government official stated.
Later on Monday, senior government ministry officials, including Union Minister for Electronics and Information Technology Ashwini Vaishnaw, met with representatives of gaming companies, another official confirmed.
“The government instructed the gaming companies that they should facilitate easy withdrawal of funds of users who have been impacted by the real money gaming ban. The industry has taken steps to implement the prohibition. It will be ensured that the transition for the users is smooth,” the official said.
During the meeting, Vaishnaw also emphasised the importance of e-sports and social gaming, and discussed ways to encourage growth in both areas, according to a third official.
On 19 August, the Union Cabinet approved the draft bill to ban all forms of real money gaming in India. The bill was introduced in the Lok Sabha on 20 August and in the Rajya Sabha on 21 August, where it was passed on the same dates. It later received the President’s assent, becoming law.
The aim of the Act is to promote e-sports and social games while prohibiting online real money games to curb addiction, particularly among children and young people, Vaishnaw explained while addressing the media after the bill was passed in the Lok Sabha.
“If there is a choice between addressing a problem that impacts society at large and supporting an industry, the government will always address the larger societal issue. There have been numerous instances where the financial losses incurred from these games have been substantial. There have also been instances of fraud. It was imperative for the government to take this action for the greater good of society,” Vaishnaw said.
The Act also states that anyone who engages in or authorises funds for real money games may face a jail term of up to three years, a fine of up to Rs 1 crore or both. Repeat offenders could be sentenced to up to five years in prison, fined Rs 2 crore or both.
According to one of the officials, the administrative rules under the Gaming Act are expected to be issued soon.
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