Google India enlighten Delhi High court that they are working as a Third Party Application Provider (TPAP) and partnered with banks to process the payments through the UPI infrastructure as provided by NPCI.
They have submitted their answers in order to defend their involvement in UPI payment system, they brief to the court that it is NPCI that is managing the Payment System for the UPI payment, and Google pay is working as a Third Party Application Provider in the UPI interface which does not require a specific authorisation from Reserve Bank of India (RBI) under the Payments and Settlements Systems Act, 2007.
Google India claimed that Google Pay is not a wallet (or a prepaid payment instrument)’; or a ‘System Provider’/ ‘Payment System Operator’ that requires authorisation under the PSS Act.
Google Pay is a mobile application which is only providing a technological platform and interface through which users can undertake transactions through UPI network.
They said they only provide a technical expertise to make things work fluently. They provide service related to the all nationalized bank.
Google India also clarified that they are operating as per the guideline and regulation designed by NPCI.
The affidavit filed by Google India was not in the response of questioned raised by RBI or any government organisation or individual but by a financial economist, Abhijit Mishra.
Abhijit Mishra filed a PIL which has alleged that Google Pay, mobile payment app is taking part in financial transaction without acquiring proper authorization from RBI. Mishra also explained that GPay does not figure in NPCI’s list of authorized ‘payment systems operators’ released on March 20, 2019. Mishra claims in his petition that Google is a foreign company and does not have proper license to take part in financial transaction taking place in the country.
Since petitioner entreated time to respond to Google’s affidavit, a bench of Chief Justice D N Patel and Justice Prateek Jalan on Wednesday rescheduled the matter for further hearing on 31 August, 2020.
Now the question may arise that does Google Pay which partnered with banks to process the payments through the UPI infrastructure would require an authorization from RBI.
What do you think, Does a mobile app require authorization from RBI?