MeitY Plans to Enforce Graded KYC Norms to be Followed by all Online Gaming Platforms

Ministry of Electronics and Information Technology (MeitY)
  • Profile picture
  • Naman Sharma March 1, 2023
  • 3 Minutes Read

The Indian Ministry of Electronics and Information Technology (MeitY), the nodal ministry for the online gaming industry, is reportedly taking steps to enhance the security of online gaming platforms by introducing graded know-your-customer (KYC) requirements. The proposed amendment to the Information Technology Rules 2021 would require online gaming intermediaries to conduct thorough user verification during account registration.

Ministry of Electronics and Information Technology (MeitY)
Ministry of Electronics and Information Technology (MeitY)

 

This move aims to reduce the risks associated with online gaming, including fraud, identity theft, and money laundering. By implementing graded KYC requirements, MeitY hopes to ensure that only legitimate users access online gaming platforms, thereby creating a safer and more secure online gaming environment for all.

According to reports, MeitY plans to enforce a thorough KYC check by online gaming platforms, requiring tools such as a video-based customer identification process to comply with the new regulations. Despite this, several gaming firms have requested that a one-time password and self-declaration of name and identity number be made sufficient for deposits up to ₹10,000.

Several industry stakeholders have suggested that MeitY should implement KYC procedures that follow RBI`s master guidelines for small prepaid payment devices. A senior MeitY official reportedly said, “the KYC requirement will be the same as the RBI prescribes. We don’t want to create any additional requirement for KYC.”

MeitY has also said that gaming intermediaries must be registered with a self-regulatory organization (SRO). These SROs will not allow any intervention from industry bodies. The Union Minister of State for MeitY, Rajeev Chandrasekhar, had previously stated, “We are going by the principle of accountability and transparency. The government will certainly not allow the industry to hijack the SRO.”

Rajeev Chandrasekhar
Rajeev Chandrasekhar

 

The draft rules on online gaming released by MeitY last year have already received feedback from gamers, industry stakeholders, teachers, law firms, industry bodies, and parents. MeitY has said that the final draft of the rules is currently being shaped and will be made public soon. The rules define online gaming as any game a player can access through a computer resource in exchange for a deposit and the hope of winning money.

At first glance, MeitY’s proposed KYC requirements aim to increase transparency and accountability for online gaming operators.

This is a developing story! Keep following PokerGuru for all the latest updates.

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

Top Online Poker Rooms

Top
PokerGuru