Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021

April 10, 2023

Several amendments were made by the Central Government to the IT Rules related to online gaming and the spread of false and misleading information regarding government business. These amendments seek to enforce greater due diligence by online gaming and social media intermediaries.

Consultation with Stakeholders

The Ministry of Electronics and IT allocated the matter related to online gaming rules on December 23, 2022. The draft amendments were uploaded for consultations on January 2, 2023. During the drafting process, stakeholders such as parents, school teachers, academics, students, gamers, and gaming industry associations, child rights bodies, were consulted to ensure the new rules take into account the interests and concerns of all parties involved.

Obligations of Intermediaries

According to the amended rules, online gaming intermediaries are obliged to make reasonable efforts to not host, publish or share any online game that can cause the user harm or that has not been verified as a permissible online game by an online gaming self-regulatory body/bodies designated by the Central Government. The self-regulatory body has the authority to inquire and satisfy itself that the online game does not involve wagering on any outcome and that the online gaming intermediary and the game comply with the rules.

For online games involving real money, the amended rules cast obligations on online gaming intermediaries to display a mark of verification by the self-regulatory body on such games, inform their users of the policy for withdrawal or refund of deposit, manner of determination and distribution of winnings, fees and other charges payable, obtain the KYC details of the users, and not give credit or enable financing by third parties to the users.

If in case a notification is issued by the Central Government in the interest of users or other specified grounds, the same rules and obligations will be applicable to even those games where the user is not required to make any deposit for winnings.

Fact Check Unit and Fake News

The amended rules also cast an obligation on intermediaries not to publish, share, or host any fake, false, or misleading information in respect of any business of the Central Government. The notified Fact Check Unit of the Central Government will identify fake, false or misleading information as per the amended rules.

PM Modi’s Vision for Young Indians

Prime Minister Shri Narendra Modi’s vision and goal are to ensure that young Indians get every opportunity possible to create startups and innovate for the world. These amendments aim to protect the interests of all parties involved, while also ensuring that online gaming and social media intermediaries uphold greater due diligence and responsibility in their operations. As online gaming presents a huge opportunity for India and young Indians, it is important to create a safe and regulated environment for its growth and development.

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