Online gaming ban to come into effect from Oct 1, data protection rules by Sept 28

The Act has been drafted over national security concerns related to online gaming platforms, including the use of digital wallets and cryptocurrencies for money laundering and illicit fund transfers, these platforms serving as potential messaging and communication grounds for terror organisations, and offshore entities circumventing Indian tax and legal obligations, among others.

The government will prohibit any person from offering online games in India, failing which they could be imprisoned for up to three years, and penalised Rs 1 crore. Those promoting such platforms, such as social media influencers, will also face jail time of two years, and a penalty of Rs 50 lakh. The government will also prohibit banks and financial institutions from facilitating financial transactions on such platforms.

IT Minister Vaishnaw also said that the data protection rules will be released before September 28. The rules are crucial for the operationalisation of the Digital Personal Data Protection Act 2023, which was enacted nearly two years ago, but is yet to be implemented due to the absence of the rules. A draft version of the subordinate legislation was released in January this year, with the government since holding a series of consultations with various stakeholders.