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Indian Bank Introduces 1% Fee on Real Money Gaming Transactions Above ₹10,000: What You Need to Know

In a move that could impact lakhs of online gamers across the country, a leading Indian private sector bank has introduced a new policy imposing a 1% fee on cumulative monthly spends exceeding ₹10,000 on real money gaming platforms. This includes popular apps like Dream11, MPL (Mobile Premier League), Rummy Culture, and Junglee Games. The bank’s decision marks a significant shift in how financial institutions are approaching transactions involving real money gaming and digital fantasy sports in India.

What’s Changing?

Starting from the effective date (yet to be officially announced), customers using their credit or debit cards issued by this bank will incur a 1% transaction fee on all monthly spends beyond ₹10,000 made on real money gaming platforms. Importantly, the cost is capped at ₹4,999 per month, offering a degree of financial predictability for high spenders but still making a noticeable dent for frequent users.

For example, if you spend ₹15,000 on Dream11 and ₹6,000 on MPL in the same billing cycle, totalling ₹21,000, the 1% charge will apply on ₹11,000 (i.e., the amount exceeding the ₹10,000 threshold), resulting in a ₹110 fee. However, if someone spends upwards of ₹5 lakh in a month, the total fee will not exceed ₹4,999.

No Reward Points on Gaming Spends

In addition to the transaction fee, the bank has made another crucial change: **No reward points will be awarded** for any spending on real-money gaming platforms. This is a stark departure from the norm, where high-spending customers typically benefit from reward programs including cash back, travel points, or shopping vouchers.

By removing reward points on these transactions, the bank aims to disincentivise heavy spending on gaming platforms and possibly reduce the risk exposure associated with such transactions.

What Should Customers Do?

Gamers and users of platforms like Dream11 and MPL should reassess their monthly budgets and spending habits. For those who regularly exceed the ₹10,000 mark, this new charge could significantly increase overall expenses. Users may also want to explore alternate payment methods like UPI or prepaid wallets, though these could also face restrictions in the future.

The 1% fee on gaming transactions marks a new era of financial accountability for online gaming enthusiasts. While it may not deter all users, it certainly forces a re-evaluation of spending behaviour. With banks tightening their grip and the government working on stricter digital gaming regulations, the landscape of real money gaming in India is set for notable changes in the months to come.

Gutshot Magazine covers the real-money gaming industry and keeps you updated about its latest developments. Keep reading!

 

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