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Google Pay operational validity under High Court lens


Mumbai: Google Pay is set to undergo a judicial examination of its operational validity as a third-party application provider (TPAP) in India’s burgeoning digital payment ecosystem.

A two-member bench of the Delhi High Court has ordered a “detailed hearing” on whether the payment platform operates as a TPAP, or a full-fledged payment system provider in which case it would be in violation of the Payment Systems Settlement Act 2007.

The bench, headed by Chief Justice DN Patel, said this after the Reserve Bank of India argued on Friday that Google Pay functioned as a third-party service provider and hence didn’t figure on the list of authorised payment system providers.

Representatives from the central bank were responding to a public interest litigation filed by Abhijit Mishra, an economist, last year contesting that the payment platform of the US-based Internet giant had violated the local law as it had no authorisation to function as a service provider.

The court observed that the ruling on the matter would likely affect the operational status of some other TPAPs whose names were mentioned by Mishra in the original petition. ET couldn’t verify the names of these companies. The matter will be heard on July 22.


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