Search for:
  • Home/
  • Tech/
  • Delhi High Court nixes PILs against operation of Google Pay in India | Delhi News

Delhi High Court nixes PILs against operation of Google Pay in India | Delhi News

The Delhi High Court has dismissed two Public Interest Litigations (PILs) seeking directions to Google Payment India Private Limited to cease its operations in the country over an alleged violation of regulatory and privacy norms.

A division bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad in its August 7 order said Google Pay is a “mere third party app provider” for which no authorisation from the Reserve Bank of India (RBI) is required under the provisions of the Payments and Settlement Systems Act (PSS) Act.

The petitioner, Abhijit Mishra, had contended that Google Pay had violated “privacy norms by gaining access to and using consumers’ personal data” such as Aadhaar details which are in contravention of provisions of the Aadhaar (Targeted Delivery of Financial and Other. Subsidies, Benefits and Services) Act, 2016, the Payments and Settlement Systems (PSS) Act, 2007, and the Banking Regulation Act, 1949.

Mishra also contended that “storage and use of sensitive and personal banking information” amount to an offence by a company under the Aadhaar Act. The petitioner’s main grievance was that operations of Google Pay in India as a payment system provider are unauthorised for want of obtaining necessary permissions. Hence, Google Pay storing sensitive information of Indian citizens would be tantamount to violations under the aforementioned Acts, he had said.

However, the High Court after perusing the counter affidavit filed by RBI held Google Pay was not a system provider under the PSS Act and that it did “not find any merit in the petitioner’s contention (that) Google Pay is actively accessing and collecting sensitive and private user data”.

Freedom Sale

“…it can be safely gathered that NPCI (National Payments Corporation of India) is the operator of the UPI system for transactions in India and is a ‘system provider’ which is authorised by the RBI under the PSS Act to extend its services for facilitating transactions, and the transactions carried out via UPI through Google Pay are only peer-to-peer or peer-to-merchant transactions and is not a system provider under the PSS Act, 2007,” the bench said.

Most Read

Aamir Khan showed up at my one-room-kitchen at midnight because he was not satisfied with a scene: Mushtaq Khan
Gadar 2 box office collection day 9: Sunny Deol-starrer records biggest second Saturday of all time, inches towards Rs 400 crore

“Third-party apps such as Google Pay are designed to provide a large customer base to participating banks. A third-party app such as Google Pay obtains approval from NPCI for operating on the UPI platform,” the bench also observed.

The PILs had alleged that Google Pay’s name was not mentioned in the list of entities authorised under the PSS Act, 2007, read with the Board for Regulation and Supervision of Payment and Settlement Systems Regulations, 2008, for setting up and operating a payment system in India.

It was also contended that by not finding a mention in this list, Google Pay is an unauthorised payment system service and has “obtained unfettered access to its customers’ personal information” such as Aadhaar, PAN, and other transaction details.

Click for more updates on Delhi News Today. Also get Latest News Updates from Mumbai, Chennai, Bengaluru, Kolkata and other parts of India at The Indian Express.

Source link