All online gaming Unified Payments Interface (UPI) transactions under INR 50 will now be permanently banned by the National Payments Corporation of India (NPCI), state news reports. The new law has been implemented to moderate the volume of UPI Payments that has increased during the pandemic. This surge was responsible for many bank outages.
There has been a rise in small-ticket transactions within gaming platforms in the past few weeks. One of the reasons for this could be the start of the Indian Premier League on 9 April. Fantasy sports platforms like Dream11, Mobile Premier League (MPL) allow users to create their own teams. As cricket is one of the top sports on these platforms, there is always high usage of fantasy sports applications during the IPL season.
However, the gaming industry has already started to explore the different ways to appeal the ban. For this process, they have approached the NPCI through the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Internet & Mobile Association of India (IAMAI). Since the real money gaming industry operates with the help of small user transactions, the ban could potentially harm a part of their revenue generation.
While the Public Gambling Act of 1867 exists, states are still permitted to create their own regulations. While most states tend to fall back on the Public Gambling Act like Manipur, Uttarakhand, Haryana, Punjab etc., there are states that have gone ahead and outrightly banned online gaming that involves money. Among these states are Tamil Nadu, Andhra Pradesh, and most recently Kerala.
Donna Amo is a writer at Gutshot Magazine. She is a graduate from Sophia College of Women, Mumbai with a degree in English Literature. When this October born foodie is not writing content or poetry, she spends her time laughing at memes or watching series. Based out of Mizoram, she is drawn to all things nature and has a soft spot for puppies.
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