Tech3 | Govt's landmark step to boost online gaming; Can India win the Quantum race; and more

In today’s newsletter:

• Govt's landmark step to boost online gaming
• Can India win the Quantum race
• Credit lines coming to UPI

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?Top 3 stories

Govt's landmark step to boost online gaming

India's fledgling gaming industry can rejoice as the regulatory framework is now settling in, providing much-needed stability.

DRIVING THE NEWS

The Ministry of Electronics and Information Technology (MeitY) today?notified gaming-related amendments?to the IT rules 2021, thereby fulfilling a long-standing demand of the skill-based gaming industry.

• As per the amendments, the government will appoint multiple self-regulatory organisations (SROs) to determine whether a real-money game is permitted to operate in India or not. It will start by appointing 3 SROs, to begin with, but can appoint more later.

KEEPING IT SIMPLE

While announcing them today, India's junior IT minister Rajeev Chandrasekhar said these regulations don't deal with "all the sophistication into what is game of chance or game of skill.”

• Further, only real-money games where the transfer of money is involved will be regulated through these rules, he said.

WHY DOES IT MATTER

These regulations are expected to shape the future of India's gaming sector which is expected to?touch $8.6 billion in revenue in FY27, from $2.6 billion in FY22, as per a report.

• It is also likely the first step?towards forming a central law?to regulate the nascent but growing sector. IT minister Ashwini Vaishnaw has previously mentioned the need for such a law.

WHAT IS THE INDUSTRY SAYING?

All India Gaming Federation (AIGF) CEO Roland Landers said this move will propel the industry to compete globally, while Dream Sports co-founder Harsh Jain said it will unlock the potential for the gaming industry to "significantly contribute to Prime Minister’s vision of a trillion dollar digital economy."

Mobile Premier League co-founder Sai Srinivas also termed it as a "watershed moment" that will boost investor confidence and aid in India's journey to become a global leader in gaming.

Can India win the Quantum race

India lagged behind in the field of semiconductors and is now striving to catch up in the area of artificial intelligence. However, the upcoming quantum technology is anticipated to be the next big thing, and global investment in this field has already reached $36 billion.?

The question is, how well-prepared is India for this emerging technology?

TELL ME MORE

During a recent discussion with Prof. Rajamani Vijayaraghavan, a renowned quantum scientist from the Tata Institute of Fundamental Research in India,?we explored India's position in the quantum race.?

Despite being behind in some areas, the professor maintains that it is not too late for India.

WHY DOES IT MATTER

Last week at the New Delhi conclave, a senior defense official stated that future wars will be fought using quantum technology.?

• Governments and industries are worried about a Y2K-like scenario when large-scale quantum computers become operational.

In addition to strategic affairs, quantum technology is expected to be a significant player in various other areas such as drug discovery, financial modelling, weather forecasting, and combatting climate change.

THE HURDLES

India's journey towards quantum computing is faced with several obstacles, including challenges with fund disbursement, scientific procurement, and bureaucratic hurdles. These issues pose significant barriers to progress in this field.

Curious about the current status of quantum computing, its hindrances to practical use, and India's position in the field??Read the full interview

Credit lines coming to UPI

Today marks another Aha! moment for India's Unified Payments Interface or UPI.?Reserve Bank of India (RBI) Governor Shaktikanta Das today?allowed the operation of pre-sanctioned credit lines?at banks via UPI.

WHAT DOES IT MEAN?

A credit line is a financial borrowing option that allows borrowers to request funds from lenders with flexible options and services. Currently, UPI transactions are enabled between deposit accounts at banks and are sometimes intermediated by pre-paid instruments, such as wallets.

With RBI's permission, the Unified Payments Interface (UPI) will now have an expanded scope that includes the ability to transfer funds to and from pre-sanctioned credit lines at banks, in addition to deposit accounts. Moreover, the UPI network will now allow payments to be financed by credit from banks.

MORE GLOBAL PUSH FOR UPI

Meanwhile, the RBI and National Payment Corporation of India (NPCI)?are in discussion?with various countries to have UPI arrangements.