Google India Digital Services Pvt Ltd has advised the Delhi High Court that its Google Pay app doesn’t require RBI authorisation as it’s not a cost system operator (PSO) however a 3rd occasion software supplier.
Google, in an affidavit, has mentioned the PSO authorised by the Reserve Bank of India (RBI) is the National Payment Corporation of India (NPCI) which is the proprietor and operator of the whole unified cost interface (UPI) community.
NPCI, in flip, authorises the cost service supplier banks and third occasion software 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 cost 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 appearing as a funds system supplier in violation of the Payments and Settlements Act because it has no legitimate authorisation from the central financial institution of the nation to hold out such features.
Mr. Mishra has additionally contended that GPay doesn’t determine in NPCI’s listing of authorised “payment systems operators” launched on March 20, 2019.
Google has contended, in its reply filed by way of advocate Himanshu Vij, that it really works throughout the NPCI regime and complies with its pointers and the relevant legal guidelines.
It additionally mentioned that it’s going to take steps to adjust to the RBI’s March 17, 2020 “Guidelines on Regulation of Payment Aggregators and Payment Gateways” which mandates that entities offering service provider providers, like Google Pay, get registered with the central financial institution.
Google has additionally mentioned that it’s complying with RBI’s 2018 “data circular” which mandates that each one system suppliers have to make sure that whole information regarding cost methods operated by them are saved solely in India.
Google mentioned it’s complying with the round, despite the fact that it is just relevant to system suppliers and never service suppliers like itself.
RBI had earlier advised the courtroom that Google Pay is a 3rd occasion app supplier (TPAP) and doesn’t function any cost methods.
Therefore, its operations should not in violation of the Payment and Settlement System Act of 2007, RBI had mentioned.
RBI had additionally advised the excessive courtroom that since Google Pay doesn’t function any cost system, it doesn’t discover a place within the listing of authorised cost system operators.