The Delhi High Court on Wednesday asked Reserve Bank of India (RBI) and Google India Digital Services Pvt Ltd to file their replies on a plea alleging Google Pay is not listed as an authorised operator in RBI's list of the 'payment system operators'. The petitioner has sought direction to the RBI to stop Google Pay operation in India.
A division bench of Chief Justice Rajendra Menon and Justice Anup Jairam Bhambhani issued notice to the RBI and Google India Digital Services on a public interest litigation (PIL) filed by Abhijit Mishra. During the hearing, the bench also asked RBI, how Google's mobile payment app, GPay, was facilitating financial transactions without the requisite authorisation from the central bank.
In his plea, Mr Mishra alleged that Google Pay is offering its services without any authority to operate as payment system operator, which he claims is in violation of Section 4 sub section 1 of the Payment and Settlement Systems (PSS) Act 2007, published by the RBI on 20 March 2019.
Section 4 (sub section 1) of the PSS Act mentions that no entity, other than the RBI, will commence or operate a payment system except to operate under and in accordance with an authorisation issued without by the central bank.
Mr Mishra, in his plea says, "Google India Digital Services doing business as Google Pay though its operation in India, which are not monitored or authorised, and thus gaining access to personal information such as Aadhaar number, permanent account number (PAN) and transaction details of the public by acting as a payment and settlement systems operator."