With reference to the Promotion and Regulation of Online Gaming Rules, 2026, consider the following statements: 1) The rules permit online money games provided they are based on skill rather than chance. 2) Banks and financial intermediaries are exempt from any obligation related to online gaming transactions. Which of the statements given above is/are correct?

Explanation

Both statements are incorrect. The rules distinguish permissible e-sports and online social games from prohibited online money games. An online money game involves financial stakes and may be based on chance, skill, or both. The prohibition therefore applies to every online money game, including skill-based games, as well as to their advertising, promotion, and facilitation. Banks and payment systems are barred from processing transactions linked to these games. The Online Gaming Authority of India coordinates with financial institutions to enforce the prohibition, and financial intermediaries are not exempt.

Why the other options are wrong

• (A) Statement 1 is wrong because the prohibition covers online money games based on chance, skill, or both; skill-based games are not permitted.
• (B) Statement 2 is wrong because banks and payment systems are barred from processing transactions linked to prohibited online money games and have related enforcement duties.
• (C) Both statements cannot be correct: the rules prohibit all online money games, do not exempt financial intermediaries, and assign them enforcement-related duties.

Concept

This question tests how well you understand the distinction between permissible and prohibited online games under digital-economy rules, the design of the regulatory institution, the role of financial intermediaries, and consumer-protection regulation. It matters for RAS because it connects current law and policy with institutional design.

Source

• Press Information Bureau, Government of India

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