In the leading case of Abhijit Mishra v. RBI & Ors, Reserve Bank of India affirmed that Google Pay is only a Third-Party App Provider, before the Delhi High Court. The revelation constitutes RBI’s testimony lodged in a PIL seeking a command to the Reserve Bank of India to instantly halt the uncertified functioning of Google Pay in India.

The petitioner claimed that it is an unauthorized entity in terms of section 4(1) of the Payment and Settlement Systems Act, 2007 (PSS Act). Google Pay did not feature in RBI’s list of authorized ‘Payment System Operators’ in India. The contention also asserted that Google Pay was wholly in violation of Section 15 (4) of the Ombudsman Scheme for Digital Transactions, 2019 as it had not allotted any Nodal officer.

RBI brought to notice that Google pay is not a verified payment system operator and elucidated that PSS Act and the misdemeanours would not be considered. The Court was notified that Google Pay was a Third-Party App Provider with four sponsor banks and therefore did not needed any mandatory registration under PSS Act and it did not came under the purview of Ombudsman Scheme for Digital Transactions, 2019. Althoug the four banks came under the Banking Ombudman Scheme 2006.

Contrasting to it, RBI further concluded that according to the National Payments Corporation of India’s communication, Google Pay was in objection with the prerequisite of RBI circular on storage of data related to the payment system in India. In light of the matter, RBI has egged on the Court to dismiss the petition.

(By – Vasundhara Dhar)