The Reserve Bank of India (RBI) has told the Delhi High Court, as a clarification of financial economist Abhijit Mishra, that Google Pay is a third party app provider (TPAP) and does not operate any payment systems. 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.
The RBI’s submissions came in response to a complaint by financial economist Abhijit Mishra who has alleged that Google’s mobile payment app, Google Pay or GPay in short, was facilitating financial transactions without the requisite authorization from RBI. Mishra has claimed that GPay was acting as a payment system provider in violation of the Payments and Settlements Act as it has no valid authorization from the central bank of the country to carry out such functions.
RBI has also told the court that, as Google Pay does not operate any payment system, it does not find a place in the list of authorized payment system operators published by the National Payments Corporation of India (NPCI).