Google India has informed the Delhi High Court that Google Pay is a third party application for providing United Payments Interface service to various banks and it works within the regime and as per the guidelines of National Payments Corporation of India.
The information was provided to the Division Bench of Chief Justice DN Patel and Justice Prateek Jalan in a plea seeking a ban on Google Pay for allegedly violating the law governing payments banks.
At the outset, Google submitted that the present petition is frivolous and can't be entertained as it wrongly presumes that Google Pay is a payments bank.
As it is clarified by the Reserve Bank of India in its counter affidavit, Google Pay is just a third party app and it is not registered as a Payments Bank so as to make it subject to the regulations of NPCI.
It is further submitted by Google that the only protocol which was required to be followed was to seek authorisation from the NPCI to operate as a third party app and the same was compiled with by Google Pay before starting its operations.
The counter affidavit further states that:
'Google Pay is also not the operator of a pre-paid payment instrument (PPI)/ wallet and is also not a PSP Bank regulated by RBI under the Banking Regulation Act, 1949, and accordingly the question of requiring an approval from the RBI does not arise since Google Pay does not perform any of these roles/ functions.'
Filed by Mr Abhijit Mishra, the petition seeks following reliefs from the court:
the Petitioner has sought the following directions from the court: