One of the most popular online payments app of India, Google Pay, recently took over all the news headlines, and was also trending on twitter as #GooglePay, #GooglePaybannedinIndia, and so on. This app came in news after Reserve Bank of India (RBI) informed Delhi High Court that this payment app was not controlled under the rules and regulations of Payments and Settlements Act, 2007. This app is a Third Party App Provider (TPAP), as told by RBI to Delhi High Court. Thus, the news began to surface that Google Pay or GPay is unauthorised, or rather not protected under any law.
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All this confusion as well as misinformation which was being spread, is now made clear by National Payments Corporation of India (NPCI). “Further, we would also like to clarify that all authorised TPAP’s are already bound by full compliance to all the regulations and applicable laws in India. UPI ecosystem is fully safe and secure, and we appeal to the citizens not to fall prey to such malicious news,” NPCI stated.
Explaining the statement, NPCI said, “RBI has authorised NPCI as a Payment System Operator (PSO) of UPI and NPCI in its capacity as PSO authorises all UPI participants.” NPCI went on to clarify that “Google Pay is classified as Third Party App Provider (TPAP) that also provides UPI (Unified Payments Interface) payment services like many others, working through banking partners and operating under the UPI framework of NPCI.” All authorised TPAPs are listed on the NPCI website.
Google Pay operates completely within the law. We work as a technology service provider to partner banks, to allow payments via UPI. UPI apps in the country are categorized as 'third party apps', and are not required to be 'payment systems operators'.— Google Pay India (@GooglePayIndia) June 24, 2020
This important step of clarification which was taken from the end of these organisations actually play an important for boosting the same confidence in public, and thus enabling them to use the online payment platforms safely as well as securely.
National Payments Corporation of India (NPCI) basically works as an umbrella organisation that enables all the digital payments as well as settlement systems in India, this organisation is the combined initiative of RBI and Indian Banks’ Association (IBA).