NEW DELHI: Google India Digital Companies Pvt Ltd has informed the Delhi Excessive Courtroom that its Google Pay app doesn’t require RBI authorisation as it isn’t a fee system operator (PSO) however a 3rd get together utility supplier.
Google, in an affidavit, has mentioned the PSO authorised by the Reserve Bank of India (RBI) is the Nationwide Cost Company of India (NPCI) which is the proprietor and operator of your entire unified fee interface (UPI) community.
NPCI, in flip, authorises the fee service supplier banks and third get together utility suppliers (TPAPs) like Google Pay to conduct transactions on its community, the affidavit mentioned.
The affidavit was filed in response to a PIL which has alleged that Google”s cell fee app, Google Pay or GPay briefly, was facilitating monetary transactions with out the requisite authorisation from RBI.
On Wednesday, a bench of Chief Justice D N Patel and Justice Prateek Jalan listed the matter for additional listening to on August 31 after the petitioner sought time to answer Google”s affidavit.
Petitioner Abhijit Mishra, a monetary economist, has claimed that GPay was performing as a funds system supplier in violation of the Funds and Settlements Act because it has no legitimate authorisation from the central bank of the nation to hold out such features.
Mishra has additionally contended that GPay doesn’t determine in NPCI”s checklist of authorised ”fee techniques operators” launched on March 20, 2019.
Google has contended, in its reply filed by advocate Himanshu Vij, that it really works throughout the NPCI regime and complies with its tips and the relevant legal guidelines.
It additionally mentioned that it’s going to take steps to adjust to the RBI”s March 17, 2020 ”Pointers on Regulation of Cost Aggregators and Cost Gateways” which mandates that entities offering service provider providers, like Google Pay, get registered with the central bank.
Google has additionally mentioned that it’s complying with RBI”s 2018 ”knowledge round” which mandates that each one system suppliers have to make sure that total knowledge referring to fee techniques operated by them are saved solely in India.
Google mentioned it’s complying with the round, regardless that it’s only relevant to system suppliers and never service suppliers like itself.
RBI had earlier informed the court docket that Google Pay is a 3rd get together app supplier (TPAP) and doesn’t function any fee techniques.
Subsequently, its operations aren’t in violation of the Cost and Settlement System Act of 2007, RBI had mentioned.
RBI had additionally informed the excessive court docket that since Google Pay doesn’t function any fee system, it doesn’t discover a place within the checklist of authorised fee system operators.