Google Pay is not a payment system operator but only a Third-Party App Provider, Reserve Bank of India has stated before the Delhi High Court.
RBI has also told the court that since Google Pay does not operate any payment system, it does not find a place in the list of authorised payment system operators published by the National Payments Corporation of India (NPCI).
Therefore, its operations are not in violation of the Payment and Settlement System Act of 2007, RBI has told a bench of Chief Justice D N Patel and Justice Prateek Jalan.
Petitioner Abhijit Mishra had claimed that the operation of Google Pay as a ‘Payment and Settlement System’ could not be allowed since it is an unauthorized entity in terms of section 4(1) of the Payment and Settlement Systems Act, 2007 (PSS Act).
Contrary to the Petitioner’s assertion, Google Pay was fully compliant with the requirement of RBI circular on storage of data related to the payment system in India itself.
In view of the above, RBI has urged the Court to dismiss the petition.
The matter would be heard next on July 22.