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Delhi HC questions Google Pay authorisation, seeks RBI reply by April 29

Google says it complies with all laws, mindful of prioritising data security and uninterrupted services

Aashish Aryan & Neha Alawadhi  |  New Delhi 

Google Pay
Google Pay

The Delhi High Court on Wednesday asked the (RBI) how Google’s payment application, Google Pay, was functioning in India without proper authorisation. The court has sought the banking regulator as well as Google India’s response to the query by April 29, when it will next hear the matter.

A two-judge Bench of Chief Justice Rajendra Menon and Justice A J Bhambhani was hearing a public interest litigation moved against the payment application which claims that was operating as a payments system provider in violation of the The Bench said it had no valid authorisation from the central bank to carry out such functions.

Abhijit Mishra in his petition had claimed that does not figure on the RBI’s list of authorised ‘payments system operators’ that was released as late as March 20. Since the software giant had “un-monitored and unauthorised access” to personal information such as Aadhaar, financial transactions, and other details, the privacy of individuals was also at stake, Mishra said in his petition.

ALSO READ: Going beyond digital: Google Pay goes offline to take on Amazon Pay, Paytm

In its response to the petition, Google India said that as 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 was 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 under way, 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,” a spokesperson for the company said.

Google’s payments application Google Pay, initially called Google Tez, was launched by Finance Minister in September 2017. It is an app built on the UPI, a system that allows account holders of all banks to send or receive money from their smartphones without the need to enter their netbanking user identification or password.

“The exercise that Google has undertaken today (Wednesday)… I think an addition to the entire effort of the and various government moves in this direction, I think the next few months will see major advancement,” Jaitley had said at the time.

First Published: Wed, April 10 2019. 20:34 IST
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