The Ministry of Electronics and Information Technology (MeitY) has been looking to monitor the gaming sector in India for a long period to ensure the overall safety from potential dangers. Having been given the responsibility of looking after the country's ecosystem, the body seems to have found a novel solution in the form of e-KYC.
Gaming has developed massively over the last few years in the world's largest democracy. Helped by the development of affordable internet connections and mobile devices, India has become the new hub of esports. While consoles and PC gaming are still in a nascent phase, the situation with handheld devices is quite different.
As the percentage of gamers and associated revenue from the sector continues to grow, so do the dangers. In this regard, the MeitY has been tasked with ensuring players' safety, considering the target audience's relatively young nature.
More importantly, several games today come with in-app purchases, which could be troublesome if not monitored. While there might not be a perfect solution for all the issues, the e-KYC system might be brought in as a potential bridge between all the stakeholders.
MeitY's e-KYC for gaming in India could work similar to its physical counterpart
KYC in itself is not an unknown commodity in the country, and it's an extremely important tool in India. From having bank accounts to getting fuel or food, it's a mandatory step that one needs to complete. The system being conceptualized by the the MeitY might not be exactly the same, but the overall objective is the main key here.
On January 11, Minister of State Rajeev Chandrasekhar met esports personalities from across the country to discuss how a solution could be reached. A focus was also laid on the different streams of video games, and how each differs from the other.
Amidst all the debates and discussions, Mr. Chandrasekhar made one thing clear - e-KYC will be implemented across all financial transactions. This will also mean that any video game with a system through which players can spend real-life money will have to incorporate this system to continue their operations.
It remains to be seen if there will be more classifications in the future since gaming is used in a broad manner in India. It's used like an umbrella term, and there's a strong need for greater specifications into types and subtypes.
Having e-KYCs could be a bright idea from the MeitY in this regard, as it can be considered a good parameter. Typically, offline games without in-app purchases tend to be one-time purchases. While free-to-play titles usually don't cost anything upfront, players can decide to spend on them in different ways as per their liking.
Moreover, this kind of information can also allow the government and the MeitY to monitor the negative aspects of gaming. It has become even more prevalent in India, which has a huge population and an amalgamated definition of gaming.
It will allow developers and publishers to be aware of what's going on with their products. Meanwhile, the information can help them stay clear from any foul deeds that might take place.
It's the same premise on which KYCs work in the non-gaming realm in the country. A major benefactor of the system has been the nation's banking sector, which has been able to manage the loss of funds due to illegitimate activities.
It remains to be seen how the system conceptualized by the MeitY is implemented in a sector that is largely unmonitored so far. Gamers will be hopeful that any changes will be conducive to the future of gaming in India, especially since recent years have seen the ban of some popular titles on different grounds.
A new system, led by the MeitY, will likely erase those problems and allow the government to proactively maintain one of the country's fastest-growing sectors.