In a decisive move to crack down on illicit online betting, the Ministry of Electronics and Information Technology (MeitY) convened a high-level meeting with top banks and payment firms on Friday, August 29, 2025. The government issued a clear directive, stating that all transactions with “offshore betting must be blocked,” marking the first major step in the operational rollout of the recently enacted Promotion and Regulation of Online Gaming Act, 2025.
The crucial meeting was chaired by the MeitY secretary and attended by a Deputy Governor of the Reserve Bank of India (RBI). Key financial players including senior representatives from RazorPay, PhonePe, Stripe, RBL Bank, and Yes Bank were present to discuss the implementation roadmap of the new legislation. This law, which received presidential assent on August 22, imposes a blanket ban on all online games involving monetary stakes, and significantly, holds financial institutions accountable for facilitating transactions related to such platforms.
According to sources, the discussions focused on how to effectively halt the flow of money to banned platforms and ensure strict compliance with anti-money laundering (AML) norms. Officials also emphasized the need for banks and fintech companies to develop a mechanism to differentiate between permissible models like esports and social games, and the now-illegal real-money games. Additionally, the government stressed that banks and payment gateways must facilitate smooth and hassle-free refunds for consumers with existing balances in their gaming wallets.
Acknowledging the complexity of the directive, MeitY has assured financial institutions that a transition period will be provided to allow for necessary system upgrades and infrastructure changes. This measure aims to prevent disruption while ensuring a smooth and effective implementation of the new law. The meeting signifies a serious and coordinated effort by the government to safeguard citizens from financial fraud and addiction, and to create a more secure digital economy.
Key Highlights:
- MeitY held a high-level meeting with key banks and payment firms, including RazorPay and PhonePe, on August 29 to direct them to block offshore betting transactions.
- The directive is part of the implementation of the new Promotion and Regulation of Online Gaming Act, 2025, which imposes a blanket ban on real-money gaming.
- The discussions focused on creating mechanisms to halt money flows to illegal platforms, ensuring compliance with anti-money laundering norms, and facilitating consumer refunds.
- The government has assured financial institutions a transition period to adapt their systems to the new legal framework.