GPAY DOES NOT NEED RBI AUTHORIZATION

GPAY DOES NOT NEED RBI AUTHORIZATION

22^ND October 2020

Google India Digital Services Private Limited has informed the Delhi High court that it acts as a Third Party Application Provider (TPAP) to partner banks for payments through the UPI infrastructure provided by NPCI.

It has been contended by Google that as far as the UPI payment system is concerned,  the NPCI is authorized as the Payment System Operator of the UPI payment system. Google pay is merely working as a TPAP in the UPI interface, which does not require specific authorization from the Reserve Bank of India (RBI) under the Payments and Settlements Systems Act, 2007.

Even RBI informed the Delhi High Court that Google Pay works only as of the third-party app provider, which connects between the account of payer and payee through UPI infrastructure; hence it does not operate any payment system, therefore, not required to be authorized.