How is GPay operating without authorization? : Delhi High Court

New Delhi, April 10: The Delhi High Court on Wednesday asked the Reserve Bank of India, RBI how Google's mobile payment app, GPay, was facilitating financial transactions without the requisite authorization from it. The court issued a notice to RBI and Google India seeking their stand on the issue rose in the plea.

 

With the digitization of bank services, private companies give facilities to ease the services. Many such facilities are popular among youths in India as well as around the world, as these applications are available on mobile. It has access anywhere all the time. Google provides this ‘GPay’ mobile service

A bench of Chief Justice Rajendra Menon and Justice A J Bhambhani posed the query to RBI while hearing a PIL. This PIL which 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.

Reserve Bank of India is a governing bank all over the country. RBI is India's central banking institution, which controls the issuance and supply of the Indian rupee. It regulates the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage.

The petitioner, who has contended that GPay does not figure in RBI's list of authorised 'payment systems operators' released by the central bank on March 20, 2019.