Delhi High Court Dismisses PILs Against Google Pay

Table of Contents:–

1. Introduction
2. Allegations and Claims
3. Regulatory Framework
4. Court’s Verdict
5. Concerns Over Data Access
6. Google Pay’s Status as a Third-Party App
7. Conclusion

1. Introduction

In a recent legal development, the Delhi High Court addressed two public interest litigations (PILs) concerning the operations of Google Pay in India. The litigations alleged violations of regulatory and privacy norms by the payment platform. This case study delves into the key aspects of the court’s dismissal of these PILs.

2. Allegations and Claims

Petitioner Abhijit Mishra raised concerns about the legality of Google Pay’s operations in India as a “payment system provider.” He argued that the platform lacked proper authorization for such activities and therefore operated unlawfully.

3. Regulatory Framework

The court referred to the 2019 UPI Guidelines, which distinguish between “customer data” and “customer payments sensitive data.” These guidelines played a crucial role in assessing the alleged violations.

4. Court’s Verdict

A bench led by Chief Justice Satish Chandra Sharma dismissed the PILs, asserting that Google Pay was merely a “third-party app provider.” The court determined that Google Pay did not fall under the purview of RBI authorization according to the Payments and Settlement Systems Act (PSS Act). The court deemed the complaints to be without merit.

5. Concerns Over Data Access

The petitioner raised concerns regarding Google Pay’s access to personal information such as Aadhaar, PAN, and transaction details. The court examined the extent of data access by the platform.

6. Google Pay’s Status as a Third-Party App

The court clarified that Google Pay did not qualify as a “system provider” under the PSS Act, as it primarily facilitated peer-to-peer or peer-to-merchant transactions. The court highlighted the role of the National Payments Corporation of India (NPCI) in operating the UPI system and its authorization from the RBI.

7. Conclusion

The Delhi High Court’s dismissal of the PILs against Google Pay underscores the platform’s status as a third-party app provider. The court’s analysis of regulatory guidelines and the differentiation between data types played a crucial role in reaching this verdict. The court’s determination aligns with the broader financial technology landscape, emphasizing the role of authorized entities like NPCI in facilitating transactions on the UPI platform.