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Google Pay Operating In India Without RBI’s Authorisation
Google Pay, a digital wallet platform and Online Payment system developed by Google is operating in India without seeking authorization from Reserve Bank of India (R.B.I.). In Accordance to Section 4(1) of The Payment and Settlement Systems Act, 2007 “No person, other than the Reserve Bank, shall commence or operate a payment system except under and in accordance with an authorization issued by the Reserve Bank under the provisions of this Act.” Section 4(1) of the said Act empowers the Central bank to authorize working of such payment systems.
In a PIL filed by advocate Abhijit Mishra, the matter was brought before the Delhi HC seeking order from court to direct RBI to Stop ‘unauthorized operation’ of Google Pay in India as it is not listed as an authorized operator in the Reserve Bank’s catalogue of ‘Payment System Operators’ as released on 20th March 2019.
A Division bench of Chief Justice Rajendra Menon and Justice A J Bhambhani of Delhi HC on 10th April 2019 issued a notice seeking the stand of Reserve Bank of India (R.B.I) and Google India on this issue raised before the court. Court also asked R.B.I. to file a reply on “How Google Pay is working without its authorization in India ?”
A major concern for gross violation of Article 21 and Right to privacy is raised by Mishra before the court as Google pay has unauthorized and unmonitored access to personal details of citizens such as PAN, Aadhar and Financial transactions.
However, on the other hand, Google denying any such requirements said: “Google Pay complies with all applicable legal requirements. Google Pay operates as a technology service provider to its partner banks, to allow for payments through the UPI infrastructure, and is not part of payment processing or settlement. There is no requirement for licensing of these services under the prevailing statutory and regulatory provisions. In order to support our partner banks, our efforts in complying with the government’s data localisation norms are underway, and given the scale and complexity, we are being mindful to prioritise data security and uninterrupted services to our users as we make this transition. The central bank is apprised of the progress and we remain committed to complying with the laws of the land.”
The Matter is Listed on April, 29th for further Hearing.
