- The Union government is considering a transition period for real-money gaming platforms to exit
- The Ministry of Electronics and IT and Ministry of Finance are discussing the exit plan with banks
- The transition aims to allow firms to settle dues, close wallets, and wind up operations smoothly
The Union government is considering providing a transition period for real-money gaming platforms to exit following the enactment of the Online Gaming Act, sources told NDTV Profit on Friday.
The move, being discussed between the Ministry of Electronics and IT and the Ministry of Finance's Department of Financial Services, banks and payment aggregators, is aimed at ensuring an orderly wind-down of operations and wallet settlements without disrupting the financial system.
Officials conveyed to banks and fintechs that while offering or facilitating online money games will soon be prohibited, a limited exit window would allow firms to settle dues with users, close wallets, and wind up operations smoothly.
Fintech players and payment aggregators were also briefed on the intent of the legislation, its compliance requirements and the need for heightened transaction monitoring to prevent migration of users to offshore illegal platforms.
The agenda included strengthening risk controls, fraud protection and monitoring by payment intermediaries ahead of a possible spike in such offshore activity once the ban is enforced. Detailed compliance guidelines and monitoring mechanisms are expected to follow once the rules under the Bill are formally notified.
According to sources, fintechs like PayU, Amazon, Razorpay, MobiKwik, Stripe and PhonePe were invited for the meeting, alongside banks like SBI and Yes Bank.
The transition window, sources said, would be critical in avoiding systemic shocks and ensuring consumer protection in the wake of the ban.
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