Google India Digital Services Private Limited has informed Delhi High court that it merely works as a Third Party Application Provider (TPAP) to partner banks to allow for payments through the UPI infrastructure as provided by NPCI.
It has been submitted that in so far as the UPI payment system is concerned, it is the NPCI that is the Payment System Operator of the UPI payment system, and Google pay is merely working as a TPAP 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.
It has said 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.
It has added that Google Pay is a mobile application which is simply providing a technological platform and interface through which users can undertake transactions through UPI network.
It has said that it works on the multi-PSP model and it connects to the UPI systems operated by NPCI through multiple PSP Banks.
It has added that the features of Google Pay are in consonance with the mechanism enshrined in the Procedural Guidelines and UPI framework designed by NPCI.
The affidavit was filed in response to a PIL which has alleged that Google’s mobile payment app, Google Pay was facilitating financial transactions without the requisite authorisation from RBI.
A bench of Chief Justice D N Patel and Justice Prateek Jalan on Wednesday listed the matter for further hearing on 31 August after the petitioner sought time to respond to Google’s affidavit
Petitioner Abhijit Mishra, a financial economist, has claimed that GPay was acting as a payments system provider in violation of the Payments and Settlements Act as it has no valid authorisation from the central bank of the country to carry out such functions.
Mishra has also contended that GPay does not figure in NPCI’s list of authorised ‘payment systems operators’ released on March 20, 2019.