Centre May Direct Fintech Cos To Block Payment Gateway Access

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The Indian government is reportedly considering directing fintech companies to block payment gateway access to non-permissible online games, according to sources familiar with the matter. The government is seeking to curb the growth of the online gaming industry, which it views as a potential threat to national security and a contributor to gambling addiction among young people. The move comes after several states in India have already introduced laws banning online gaming for money, including Tamil Nadu and Andhra Pradesh. However, it remains to be seen how fintech companies will respond to the directive, and what impact it may have on the online gaming industry.

The move to direct fintech companies to block payment gateway access to non-permissible online games is part of the Indian government’s efforts to regulate the online gaming industry in the country. The Ministry of Electronics and Information Technology (MeitY) has been tightening its grip over online gaming and has expressed concerns over the addictive nature of certain games and their impact on children.

The government has been taking various measures to regulate online gaming, including issuing guidelines for fantasy sports platforms and setting up a self-regulatory body for online gaming companies. The proposed order to fintech and payment companies is expected to further strengthen the government’s efforts in this regard.

If the order is issued, fintech and payment companies will be required to block payment gateways for online games that are not permissible under Indian laws. This could have a significant impact on the online gaming industry in the country, as many companies rely on payment gateways to process transactions. It remains to be seen how fintech and payment companies will respond to the proposed order and how effective it will be in regulating the online gaming industry in India.