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GPay does not require RBI nod for facilitating financial transactions: Google tells Delhi HC

According to Google, GPay is not a payment system operator but a third party application provider. Google added that PSO authorised by the RBI was the National Payment Corporation of India

twitter-logoBusinessToday.In | July 23, 2020 | Updated 10:02 IST
GPay does not require RBI nod for facilitating financial transactions: Google tells Delhi HC
The RBI had earlier told the court that Google Pay is a third-party app provider and does not operate any payment systems.

Search engine giant Google, in an affidavit, told the Delhi High Court that its Google Pay (GPay) application did not require any authorisation from the Reserve Bank of India (RBI). The affidavit was filed in response to a PIL, which alleged that GPay was facilitating financial transactions without the requisite authorisation from the RBI. Economist Abhijit Mishra filed a petition against Google, claiming that its GPay app was acting as a payments system provider in violation of the Payments and Settlements Act.

Mishra has also contended that GPay did not figure in the NPCI's list of authorised ''payment systems operators'' released on March 20, 2019. Google, in its reply filed through advocate Himanshu Vij, stated that it worked within the NPCI regime and complies with its guidelines and the applicable laws.

According to the multinational technology firm, Google Pay is not a payment system operator (PSO) but a third party application provider. Google added that PSO authorised by the RBI was the National Payment Corporation of India (NPCI).

NPCI is the owner and operator of the entire unified payment interface (UPI) network, says Google.

Google said that NPCI authorised the payment service provider banks and third-party application providers (TPAPs) like Google Pay to conduct transactions on its network.

Additionally, Google said that it was complying with the RBI's 2018 ''data circular'', which mandated that all system providers have to ensure that entire data relating to payment systems operated by them was stored only in India.

Meanwhile, petitioner Mishra sought time to respond to Google's affidavit. The High Court has listed the matter for further hearing on August 31.

The RBI had earlier told the court that Google Pay is a third-party app provider (TPAP) and does not operate any payment systems. The central bank has also said that GPay's operations were not in violation of the Payment and Settlement System Act of 2007.

The RBI had also told the high court that since Google Pay does not operate any payment system, it does not find a place in the list of authorised payment system operators.

(With PTI inputs)

Also read: Google Pay not a payment system operator: RBI to High Court

Also read: All transactions fully protected under RBI, NPCI guidelines: Google Pay

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