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Google PAY allegedly operating without authorization from RBI

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Google PAY
GPAY issues

GPAY or Google Pay is one of the most trusted online transaction app in the recent past. It is an online payment system developed by Google to power in-app and tap to purchase in mobile devices, it was started in 2015.

Google Pay has been in some illusions that it is been operated by the firm without authorization from RBI. Delhi High Court on Wednesday asked from RBI how Google’s mobile payment app, GPAY was facilitating payment of their users without authorization from RBI.

The GPAY name is also not mentioned in the list of 82 players who have received a Certificates of Authorisation issued by RBI under the Payment and Settlement Systems Act, 2007 for setting and operating payment system in India.

RBI released the list of authorized system operators on March 20, 2019.

A division bench of Chief Justice Rajendra Menon and Justice Anup Jairam Bhambhani issued a notice to the RBI and Google on a PIL filed by Abhijit Mishra.

Under PIL it has been highlighted that GPAY has unauthorized access to the payment option and has personal access to the documents of its users including Aadhar Card, PAN card, etc.

The petitioner has sought direction to the RBI to stop it as soon as possible and requested the court to impose a high penalty for doing unauthorized payments.

The final decision will be taken on the further notice, but if the allegations put on GPAY will be proven then it’s a serious offense by the search giant who has been allowed by NPCI and RBI to operate on UPI.

Meanwhile, GPAY holds the pole position in terms of UPI transaction value and giving tough competition to PHONEPE and PAYTM app, that has been serving from a very long time.

Till then, as GPAY has not released any further notice on the issue, we will have to wait how RBI reacts till then.

This new response to the case filled, Google India said that GPAY operates as a technology service provider between the partner banks to conduct a transaction of payments through UPI infrastructure, but is not part of payment processing or settlement.

The court will hear the matter on 29th April.

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