UPI casino payments and the Online Gaming Act

UPI casino payments run into section 7 of the Online Gaming Act of 2025, which since 1 May 2026 has barred every bank and payment firm from processing money for an online money game.

What UPI is

The Unified Payments Interface, run by the National Payments Corporation of India (NPCI) under the Reserve Bank of India, links a mobile number or UPI ID to a bank account so that money moves between Indian accounts in rupees within seconds. Google Pay, PhonePe, Paytm and BHIM are apps built on it; the money always sits in, and leaves from, an Indian bank.

Why a UPI payment to an online casino is caught

Every UPI payment passes through at least two Indian banks and a payment app. The Act bars each of them from handling money bound for an online money gaming service, and a breach is punishable with up to 3 years in prison, a fine of up to ₹1 crore, or both.

When the Rules were notified, the Centre spelt out the effect: banks and payment systems are barred from processing transactions linked to online money games.

UPI and other methods compared

MethodRuns through an Indian bankCovered by section 7
UPIYesYes
Net banking, IMPSYesYes
RuPay, Visa, Mastercard cards issued in IndiaYesYes
Foreign e-wallet loaded from IndiaYes, when loadedYes, for the Indian bank or card that loads it

Questions

Can UPI be used at online casinos in India?

No. Banks and payment apps may not process a UPI payment to an online money gaming service, and one that does commits an offence under the 2025 Act.

Who runs UPI?

NPCI runs it, with the Reserve Bank of India overseeing.

Sources