The Reserve Bank of India (RBI) told the Delhi High Court that Google Pay will be a third-party app provider (TPAP) and will not be operating any payment systems.
The Chief Justice D N Patel and Justice Prateek Jalan were told by RBI that its operations are not violating the Payment and Settlement System Act of 2007.
The court was also told by RBI that as Google Pay does not manage a payment system, it won’t have a place on the list of authorised payment system operations put up by the National Payments Corporation of India (NPCI).
This response by RBI came after PIL by Abhijit Mishra, a financial economist who had claimed that Google Pay had been enabling financial transactions without the required authorisation from RBI.
Mishra has declared that GPay had been acting as a payment system provider which broke the Payments and Settlements Act as it had no valid authorisation from the country’s central bank in order to implement such operations.
Mishra had also claimed that GPay does not figure in NPCI’s list of authorised ‘payment systems operators’ which was released on March 20, 2019.
The bench also said that the issue needs an in-depth hearing as it has an effect on other third-party apps and listed it on July 22nd.