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RBI informs Delhi HC: Google Pay not an authorized payment operator

  • Divyanshi Sachdeva | Team PresentMirror | Updated: June 26, 2020, 10:26 a.m.


The Reserve Bank of India has told the Delhi high court that Google Pay is not authorized and registered under the National Payments Corporation of India (NPCI). It is a third-party app provider and does not function under any of NPCI’s payment systems. Hence, it doesn’t find a place under the list of authorized payment system operators published by the PCI.


The RBI however said that a bench of Delhi HC chief justice DN Patel and Justice Prateek Jalan that operations of Gpay are not in violation of the Payment and Settlement System Act, 2007.

The RBI’s statement came in reply to the PIL by financial economist Abhijeet Mishra who has asserted that google pay was supporting financial transactions without the authorization of RBI. The PIL stated that the app was acting as a payments system provider by violating the payments and settlements system act as it has no grounded authorization from the central power to carry out such functions.

In lieu of all the above statements, A Google spokesperson on Wednesday clarified that,

• Google pay is an online money transaction platform accessible on all non-rooted devices (android, Lollipop 5+). It operates as a tech service provider to partner banks so to allow payments via UPI interface.

• All the transactions done through the platform are fully secured by the redressal procedures mentioned in the guidelines issued by the central bank and NCPI.

• He stated that RBI has not declared the gpay as illegal or unauthorized.

• Further, he mentioned that UPI apps are categorized as third party apps and doesn’t require to be any payment systems operators and the users have access to the 24/7 help through google customer care.

These were the statements given by google in order to keep up with their users and not disappoint them.

But, the bench said that the proceeding demands detailed hearing as this involves various third parties. It is listed to be done on July 22. Let’s see what the proceedings leads us to!

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