The Delhi High Court Wednesday asked the Reserve Bank of India (RBI) how Google India’s mobile payments app GPay was facilitating financial transactions via digital payment platform without the requisite authorisation from it.
“How are they (GPay) operating without permission,” a bench of Chief Justice Rajendra Menon and Justice A J Bhambhani observed and issued notice to RBI and Google India Digital Services Pvt Ltd on a PIL alleging that Google Pay (GPay) was operating as a payments system provider in violation of Payments and Settlements Act as it has no valid authorisation from the central bank to carry out such functions.
It also sought written response from the RBI, which is India’s central banking institution, and Google India Digital Services Pvt Ltd by April 29.
“As on March 30, 2019, GPay is not a listed partner of the Bhim Aadhaar app as per the official website of Bhim Aadhaar,” the petition said, and urged the court to impose penalties on Google India Digital Services Private Limited for doing unauthorised operation in India.
The public interest litigation also said that the RBI’s master circular of April 6, 2017, on storage of payment system data states that all such entities should ensure that the entire data related to payment systems operated by them are stored in India.
The petitioner further sought a “compliance audit” of GPay under the Payments and Settlements Act.
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