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Starting July 1, 2025, HDFC Bank will charge a 1% fee on online skill-based gaming transactions made via credit cards, applicable when monthly spending exceeds Rs. 10,000 on platforms such as Dream11, Rummy Culture, Junglee Games, MPL, and other similar real-money gaming (RMG) sites. This fee will be levied on the entire monthly spend and capped at Rs. 24,999. Additionally, reward points will not be awarded for such transactions.
HDFC is not the only private bank to introduce such a change. According to a report, starting June 1, 2025, Kotak Mahindra Bank has also begun charging a fee on skill-based gaming transactions made via credit cards.
Questions for HDFC:
MediaNama has reached out to the private bank with the following questions, seeking clarity on the action:
- What was the intention behind charging a 1% fee on online skill-based gaming credit card transactions?
- Why is the bank only imposing a 1% charge? Is there a specific reason behind this?
The financial institution did not respond to the questions at the time of publishing this article.
Why it matters?
HDFC’s latest announcement could exacerbate the issues that the RMG sector is currently facing. The industry is already in troubled waters, as several players are embroiled in a case regarding the 28% Goods and Services Tax (GST) levy by the government with the Directorate General of GST Intelligence (DGGI). In May 2025, opinion trading platform TradeX announced that it was halting its RMG operations due to the “heavy” 28% GST the government is levying on online skill-based gaming companies.
Recently, for another article, Roland Landers, Chief Executive Officer (CEO) of the All India Gaming Federation (AIGF)—an RMG industry body—told MediaNama that the current tax framework, particularly the 28% GST on the full face value, has been inadvertently hurting the legally operating online gaming industry by creating “an uneven and unsustainable playing field.”
Hence, while the RMG platforms have been fighting the current tax regime, another charge might further dissuade people from coming to such legal apps.
Addiction and Online RMG:
Although the intention behind the move is unclear, this fee might also act as a disincentive for individuals who have been gaming online with real money.
Earlier, Landers told MediaNama that India’s online gaming market is set to more than double to $9.1 billion by 2029, up from $3.7 billion in 2024. Hence, as online skill-based gaming gains traction among the younger generation, the problem of addiction is increasingly becoming prevalent.
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To address this issue, AIGF member companies have already taken several steps. Landers said the AIGF has introduced voluntary self-regulation standards among member platforms and companies, which include daily and monthly time and spending limits. Players are also provided with accessible self-exclusion tools should they choose to pause their participation.
The online gaming industry body has also launched the ‘Beyond the Screen’ initiative in partnership with the Government of Karnataka to address the wider issue of digital addiction.
“It provides a comprehensive suite of support resources, including counselling services, therapy sessions, educational videos, and curated content on responsible digital behaviour,” Landers said.
Other changes announced by the bank:
According to the email, HDFC Bank will also start charging a 1% fee if a customer uses a credit card to “load third-party wallets with more than Rs 10,000 per month” on platforms like PayTM, Mobikwik, Freecharge, Ola Money, or other similar payment apps.
The company said that the charge will apply to the entire amount spent in a given month to load the wallet. The private bank has capped the charge at Rs. 4,999 per month.
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