Banks Must Halt Online Money Game Transactions On Regulator's Direction Under Online Gaming Rules, 2026

Banks and payment intermediaries will be required to suspend or block transactions linked to online money games when directed by the regulator, under the Online Gaming Rules, 2026.

The Rules were notified by the centre on Wednesday.

Rule 19(2) says that once the Online Gaming Authority issues directions in respect of an online money game, banks, financial institutions, and entities facilitating transactions must suspend, restrict, or close such transactions and stop authorising funds tied to those games. The same provision requires them to provide information or assistance sought by the Authority.

A separate requirement kicks in even before transactions begin. Under Rule 19(1), payments for online social games or e-sports cannot be processed unless the bank or intermediary verifies that the game has a valid determination order or registration certificate, in the manner set out under directions issued under the Act.

That verification is not left open-ended. The rules link it to directions, guidelines, or codes issued under Section 8(3), indicating that banks will have to follow whatever mechanism is prescribed for checking such approvals.

Rule 18 adds another layer. Entities handling these transactions are required to comply with directions and codes of practice on how user payments are routed, handled, and managed in online games.