New Delhi, August 24
The Delhi High Court Monday sought response of the Centre and the Reserve Bank of India (RBI) on a plea in search of motion in opposition to ‘Google Pay’ for allegedly violating the central financial institution’s pointers associated to knowledge localisation, storage and sharing norms.
A bench of Chief Justice D N Patel and Justice Prateek Jalan issued notices to the authorities and in addition Google India Digital Service Pvt Ltd on the petition and listed the matter for additional listening to on September 24.
The petition sought path to Google India Digital Service to provide an enterprise to not retailer knowledge on its app underneath UPI ecosystem and additional to not share it with any third celebration, together with its holding or father or mother firm.
Petitioner and advocate Abhishek Sharma sought path to the corporate to not share any knowledge from UPI change with another celebration.
The plea additional sought to direct the RBI to take motion and impose penalty on the corporate for its alleged severe violations of relevant legal guidelines.
“Respondent number. 3 (Google India) launched, ‘Tez’, a mobile payments service targeted at users in India which later folded into the new ‘Google Pay’ app . ‘Google pay’ is a third party app which facilitates payment in the UPI ecosystem and is able to do the same by partnering with various PSP/acquirer banks,” the plea mentioned.
“Further, ‘Google Pay’ is regulated by respondent number 2 (National Payment Corporation of India) which is responsible for granting permission to Payment Service Provider (PSP) as Banks and to Third Party Apps (TPAs) to operate under the UPI network,” it mentioned.
The plea claimed that the corporate was storing private delicate knowledge in contravention of UPI procedural pointers of October 2019, which permits such knowledge to be saved solely by PSP financial institution methods and never by any third celebration software.
However, ‘Google Pay’ being a 3rd celebration software, regardless of sturdy mandate in opposition to storing private delicate knowledge, is storing the identical in utter disregard to the binding UPI procedural pointers.
The plea sought path to the RBI to take applicable punitive motion in opposition to the NPCI and revoke its authorisation to function and regulate the UPI cost system, on account of risking buyer funds knowledge, its failure to audit Google India Digital Service Pvt Ltd and take any steps in opposition to it regardless of its acts of flagrant and severe non-compliance of relevant legal guidelines.
It mentioned Google pay by the use of “Combined Google Pay Terms” is overtly sharing it with its personal group corporations as effectively third events and can be monetising the identical.
The plea additionally claimed that Google India Digital Service pvt Ltd, vide its product ‘Google Pay’, seeks to entry the situation of the customers within the identify of safety and makes use of the identical to achieve income from providing extremely focused or personalised promoting alternatives to advertisers. PTI